Changing Foundations for Global Business Systems

Companies are actively seeking new competitive advantages by changing the location and ownership of their manufacturing processes. This process results in increasing fragmentation and dispersion of global business systems of companies. The purpose of this paper is to identify how companies may improve the integration of such business systems. The paper draws on a case study of a Danish industrial equipment firm. The paper describes and analyzes the company's operations network configurations, which lay at the foundations of the company's global business system. It is demonstrated how the operations configurations have been changing over time and affecting the overall business system. The paper identifies the key determinants and outcomes of this change. Moreover, it proposes how the design of operations configurations can be improved through the development of a distinct systemic approach to control and coordination.