Configuring and operating global production networks

Global supply chains and worldwide spread subsidiaries are a topic for both huge enterprises as well as for small and medium sized enterprises. The challenge lies in the right allocation of functions and competencies within the global production network and in their coordination and integration in order to gain the desired outcome and to reach the objectives tied to the networks. In this context the purpose of the paper is to answer the question, what factors do influence the distribution and allocation of functions and competencies in a global production network, and which principles should be applied, dependent on particular context factors, for the optimal configuration of global production networks.