| By: |
Patricia Deflorin (Institute for Strategy and Business Economics, University of Zurich);
Helmut Dietl (Institute for Strategy and Business Economics, University of Zurich);
Markus Lang (Institute for Strategy and Business Economics, University of Zurich);
Maike Scherrer-Rathje (Institute for Technology Management, University of St. Gallen) |
| Abstract: |
This paper analyses the effectiveness of knowledge transfer between research
and development (R&D) and intra-firm production units. Specifically, two
distinct network structures are compared: the lead factory concept and
traditional networks of R&D and production. Based on an analytical two-stage
decision model for prototype and serial production, we highlight relevant
factors that determine the relative advantages and disadvantages of the lead
factory concept in comparison to a traditional network structure. In
particular, the lead factory concept is more cost-efficient than the
traditional network if there are a high number of production plants, the
adaptation costs for implementing the transferred prototype from the lead
factory to the plant are low, the manufacturing costs for the prototype are
high, and the manufacturing processes are not highly specific or knowledge
intensive. |
| Keywords: |
Operations Management, Manufacturing, Lead Factory, Knowledge Transfer, Cost Benefit Analysis |
| Date: |
2010–05 |
| URL: |
http://d.repec.org/n?u=RePEc:iso:wpaper:0127&r=ipr |