Global production networks in the aerospace industry: the role of risk and revenue sharing partnerships

Smith, DJ ORCID: 0000-0001-7359-8451 and Williams, DA, 2012. Global production networks in the aerospace industry: the role of risk and revenue sharing partnerships. In: New Global Developments and International Business, Liverpool.

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Abstract

The last 30 years have seen a major trend towards the internationalisation of production. In some industry sectors this process has become global as production systems have been integrated on an inter-continental basis. Global production networks have been identified as an important factor in this development. A number of studies have explored the use of global production networks in sectors such as clothing and textiles, electronics and automotive products. In general this research has been confined to consumer items that take the form of standardised, high volume commodities. This study in contrast, examines the use of global production networks by capital goods manufacturers producing non-standardised, high technology products in relatively small volumes. The context is the commercial aerospace industry and an in-depth case study of a single manufacturer, the UK based engine maker Rolls-Royce and the global production network used to develop and manufacture its Trent 1000 engine for the Boeing 787 Dreamliner, is presented. The study focuses on the use of risk and revenue sharing partnerships (RRSPs), a form of inter-firm collaboration almost unique in the aerospace industry. It analyses the role of RRSPs in facilitating the creation and operation of global production networks and the driving forces that have led to the use of this form of cooperation. The implications of the move to global production networks are considered both for flagship firms at the centre of such networks and their partners.

Item Type: Conference contribution
Creators: Smith, D.J. and Williams, D.A.
Publisher: International Society for Professional Innovation Management
Date: 2012
Divisions: Schools > Nottingham Business School
Depositing User: EPrints Services
Date Added: 09 Oct 2015 09:58
Last Modified: 09 Jun 2017 13:15
URI: http://irep.ntu.ac.uk/id/eprint/5737

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