Idiosyncratic Behavior of Globally Distributed Manufacturing

Abstract : The paper presents results of empirical research, which explores systemic background of increasing turbulences and disruptions within globally distributed manufacturing networks. Among the identified factors three have biggest impact: (1) the level of completeness and connectivity of the networks, i.e. topological characteristics of the manufacturing network (2) the herd behavior of clients and decision makers, which enhances or tames the demand due to occasional asymmetry of their perception of the demand (3) the diversity of operational environments within the network, which itself may be a dominant factor of turbulences or even disruptions of the operational processes. It means that in some circumstances, the internal resources of companies may have limited value as a countermeasure against the unlikely effects of turbulences and disruptions. The research has also identified some other factors of idiosyncratic behavior of globally distributed manufacturing, which are rooted in some particular operational policies.