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Make‐or‐buy decisions for industrial additive manufacturing

Friedrich, Anne ; Lange, Anne ; Elbert, Ralf (2022)
Make‐or‐buy decisions for industrial additive manufacturing.
In: Journal of Business Logistics, 2022, 43 (4)
doi: 10.26083/tuprints-00022894
Article, Secondary publication, Publisher's Version

Abstract

Much of the potential of industrial additive manufacturing (AM) is said to lie in the digital specification of components that can be transmitted seamlessly and unambiguously to partners fostering flexible outsourcing. In industry, we observe nuanced AM supply chain governance structures that result from make‐or‐buy decisions, with a tendency to implement AM in‐house. Thus, there is a discrepancy between what is discussed in the literature and implemented in practice. We apply a multiple‐case study approach to investigate why and how AM impacts the make‐or‐buy decision of manufacturing firms. We identify four decision profiles demonstrating the spectrum of specific governance structures and develop a framework to explain the underlying rationales. We find strong arguments for in‐house AM including firms’ perceived need to protect their digitally encapsulated intellectual property, reevaluation of their core competencies, commitment to internal learning, and senior management's enthusiasm for AM. By using transaction cost economics and the resource‐based view, we contribute to the understanding of how arguments of these general theories are modified by the digital and emerging traits of AM. We reveal contradicting guidance in the theories’ argumentation for the case of AM and provide managers a clear perspective on alternative strategies for their AM implementation process.

Item Type: Article
Erschienen: 2022
Creators: Friedrich, Anne ; Lange, Anne ; Elbert, Ralf
Type of entry: Secondary publication
Title: Make‐or‐buy decisions for industrial additive manufacturing
Language: English
Date: 2022
Place of Publication: Darmstadt
Year of primary publication: 2022
Publisher: Wiley
Journal or Publication Title: Journal of Business Logistics
Volume of the journal: 43
Issue Number: 4
DOI: 10.26083/tuprints-00022894
URL / URN: https://tuprints.ulb.tu-darmstadt.de/22894
Corresponding Links:
Origin: Secondary publication DeepGreen
Abstract:

Much of the potential of industrial additive manufacturing (AM) is said to lie in the digital specification of components that can be transmitted seamlessly and unambiguously to partners fostering flexible outsourcing. In industry, we observe nuanced AM supply chain governance structures that result from make‐or‐buy decisions, with a tendency to implement AM in‐house. Thus, there is a discrepancy between what is discussed in the literature and implemented in practice. We apply a multiple‐case study approach to investigate why and how AM impacts the make‐or‐buy decision of manufacturing firms. We identify four decision profiles demonstrating the spectrum of specific governance structures and develop a framework to explain the underlying rationales. We find strong arguments for in‐house AM including firms’ perceived need to protect their digitally encapsulated intellectual property, reevaluation of their core competencies, commitment to internal learning, and senior management's enthusiasm for AM. By using transaction cost economics and the resource‐based view, we contribute to the understanding of how arguments of these general theories are modified by the digital and emerging traits of AM. We reveal contradicting guidance in the theories’ argumentation for the case of AM and provide managers a clear perspective on alternative strategies for their AM implementation process.

Uncontrolled Keywords: 3D printing, case study research, digital supply chain, industrial additive manufacturing, outsourcing, supply chain governance
Status: Publisher's Version
URN: urn:nbn:de:tuda-tuprints-228947
Classification DDC: 300 Social sciences > 330 Economics
600 Technology, medicine, applied sciences > 650 Management
Divisions: 01 Department of Law and Economics
01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete
01 Department of Law and Economics > Betriebswirtschaftliche Fachgebiete > Department of Management and Logistics
Date Deposited: 23 Dec 2022 13:43
Last Modified: 05 Jan 2023 12:05
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