Reconfiguring international manufacturing networks in times of uncertainty: towards a new theoretical framework

Purpose Research on multinational enterprises (MNEs) is now more relevant than ever, as the world economy experiences financial stress spilling over into the real sector from the credit-constrained private sector, large trade imbalances from low public saving and high volatility in energy prices. Concerns have emerged regarding supply chain resilience, prompting calls for MNEs to reconfigure their international manufacturing networks (IMNs) to respond to external disruptions. This article addresses two critical research questions: What is the impact of new external systems on IMNs? How can IMNs respond to the new external systems for dealing with the global economic crisis? Design/methodology/approach The study adopts a qualitative case study approach by engaging with three MNEs based in Europe. Following a systematic thematic analysis process, we utilise a Context-Intervention-Mechanism-Outcome framework to develop our propositions. Findings The article proposes a new theoretical framework to capture the interactions between IMNs and their external systems, namely, their international business environment. It provides six important IMN network reconfiguration mechanisms – E2E connection, vertical integration, localisation, diversification, simplification and streamlining, and building redundancy, alongside specific operating methods. The functions of the mechanisms result in enhanced IMN controllability, agility, resilience, and sustainability. Originality/value In addition to providing important insights into the recent debate in the operations and supply chain management and international business literature. Our case-based approach offers the core guiding/controlling principles for IMNs to deal with uncertainty.