Manufacturing subnetwork: towards an unambiguous definition of the concept

A wide literature about International Manufacturing Networks (IMNs) has been developed in the last decades, driven by the globalization of operations. Attention has typically been directed on plant and network level, while little emphasis was given to subgroups of plants within the same company. Ferdows et al. (2016) introduced the concept of manufacturing subnetwork, through the clustering of plants into sub-groups on the basis of products and process characteristics. However, manufacturing subnetworks still lack well-defined boundaries and initial evidence shows a gap in the comprehension of what a subnetwork really is. This paper aims at providing a definition and a clear conceptualization of the subnetwork. The research highlights the main characteristics of subnetworks, and the difference between subnetworks, networks and business units. Furthermore, it shows the usefulness, the challenges, and the potential implications that a subnetwork-based approach might have within the corporate strategy, in particular, over three core topics of IMNs: the role of the plants, capabilities, and manufacturing strategy.