RECIPROCAL SUBCONTRACTING IN GLOBAL FACTORIES: A PENROSEAN GROWTH PERSPECTIVE

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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 languageEnglish
JournalAcademy of Management Annual Meeting Proceedings
Volume2022
Issue number1
DOIs
StatePublished - 2022
Event82nd Annual Meeting of the Academy of Management, AOM 2022 - Seattle, United States
Duration: Aug 5 2022Aug 9 2022

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