A framework of economic analysis for tapered technology-manufacturing alliances
Resource
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, 127(2), 249-261
Journal
International Journal of Production Economics
Pages
249-261
Date Issued
2010
Date
2010
Author(s)
Abstract
Globalization of production has altered the configuration of supply chains in many industries. Besides outsourcing, joint ventures and strategic alliances are increasingly established to create competitive production organizations. This paper addresses a case of tapered technology-manufacturing alliance between a process technology firm with captive manufacturing capability and an efficient manufacturing firm in an asset-heavy industry. A framework of economic analysis is first developed for fusing the factors of technology licensing, manufacturing efficiency, risk sharing, and demand uncertainty. Analysis methods of capacity economics are next described for participation analysis, capacity allocation, and contract term tradeoffs. Finally, we demonstrate the utility of the methods by numerical examples with stylized industry data and by an analysis of alliance stability when facing potential new entrants. © 2009 Elsevier B.V.All rights reserved.
SDGs
Type
journal article
File(s)![Thumbnail Image]()
Loading...
Name
342.pdf
Size
23.45 KB
Format
Adobe PDF
Checksum
(MD5):2c53b8fcaa5373ade2c749286e5de413