RECIPROCAL SUBCONTRACTING IN GLOBAL FACTORIES: A PENROSEAN GROWTH PERSPECTIVE

Michael Murphree; John Andy Anderson; Peter Buckey

doi:10.5465/AMBPP.2022.28

RECIPROCAL SUBCONTRACTING IN GLOBAL FACTORIES: A PENROSEAN GROWTH PERSPECTIVE

Michael Murphree
, John Andy Anderson
, Peter Buckey

Management and Marketing

University of South Carolina
University of Leeds

Research output: Contribution to journal › Conference article › peer-review

Abstract

Scholars commonly assume contract manufacturers must grow to achieve minimum viable scale. This study of contract manufacturers in global factories reveals how “reciprocal subcontracting” enables SMEs to sustain competitiveness while also remaining small. Taking the Penrosean growth perspective in the context of the global factory framework, we explore how SME contract manufacturers achieve competitive advantage. We find lead firms largely conform to established theory, but small contract manufacturers achieve “borrowed growth” external to the firm. This externalization of production capacity growth supports our call for theoretical extension to the Penrosean growth perspective.

Original language	English
Journal	Academy of Management Annual Meeting Proceedings
Volume	2022
Issue number	1
DOIs	https://doi.org/10.5465/AMBPP.2022.28
State	Published - 2022
Event	82nd Annual Meeting of the Academy of Management, AOM 2022 - Seattle, United States Duration: Aug 5 2022 → Aug 9 2022

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure

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10.5465/AMBPP.2022.28

Cite this

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title = "RECIPROCAL SUBCONTRACTING IN GLOBAL FACTORIES: A PENROSEAN GROWTH PERSPECTIVE",

abstract = "Scholars commonly assume contract manufacturers must grow to achieve minimum viable scale. This study of contract manufacturers in global factories reveals how “reciprocal subcontracting” enables SMEs to sustain competitiveness while also remaining small. Taking the Penrosean growth perspective in the context of the global factory framework, we explore how SME contract manufacturers achieve competitive advantage. We find lead firms largely conform to established theory, but small contract manufacturers achieve “borrowed growth” external to the firm. This externalization of production capacity growth supports our call for theoretical extension to the Penrosean growth perspective.",

author = "Michael Murphree and Anderson, \{John Andy\} and Peter Buckey",

note = "Publisher Copyright: {\textcopyright} 2022, Academy of Management. All rights reserved.; 82nd Annual Meeting of the Academy of Management, AOM 2022 ; Conference date: 05-08-2022 Through 09-08-2022",

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AU - Anderson, John Andy

AU - Buckey, Peter

PY - 2022

Y1 - 2022

N2 - Scholars commonly assume contract manufacturers must grow to achieve minimum viable scale. This study of contract manufacturers in global factories reveals how “reciprocal subcontracting” enables SMEs to sustain competitiveness while also remaining small. Taking the Penrosean growth perspective in the context of the global factory framework, we explore how SME contract manufacturers achieve competitive advantage. We find lead firms largely conform to established theory, but small contract manufacturers achieve “borrowed growth” external to the firm. This externalization of production capacity growth supports our call for theoretical extension to the Penrosean growth perspective.

AB - Scholars commonly assume contract manufacturers must grow to achieve minimum viable scale. This study of contract manufacturers in global factories reveals how “reciprocal subcontracting” enables SMEs to sustain competitiveness while also remaining small. Taking the Penrosean growth perspective in the context of the global factory framework, we explore how SME contract manufacturers achieve competitive advantage. We find lead firms largely conform to established theory, but small contract manufacturers achieve “borrowed growth” external to the firm. This externalization of production capacity growth supports our call for theoretical extension to the Penrosean growth perspective.

UR - https://www.scopus.com/pages/publications/85188131970

U2 - 10.5465/AMBPP.2022.28

DO - 10.5465/AMBPP.2022.28

M3 - Conference article

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SN - 0065-0668

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JO - Academy of Management Annual Meeting Proceedings

JF - Academy of Management Annual Meeting Proceedings

IS - 1

Y2 - 5 August 2022 through 9 August 2022

ER -

RECIPROCAL SUBCONTRACTING IN GLOBAL FACTORIES: A PENROSEAN GROWTH PERSPECTIVE

Abstract

UN SDGs

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