From system integrator to supplier: effects of changed value chain positions in industrial networks

Authors:

  • Martin Sköld

Publish date: 2008-09-04

Report number: FOI-R--2548--SE

Pages: 24

Written in: Swedish

Keywords:

  • industrial networks
  • Value chain
  • Transformation of knowledge

Abstract

The present study investigates a hypothetical question of high strategic relevance for OEM-companies, not the least within the defense industry in Sweden. The specific issue and concern appears in situations when companies are moving backwards in the value-chain, from one position to another. The sample in focus refers to a situations when an ordinary OEM-company within a complex products industry is moving from a position as an integrator, to a new position as a supplier within the same industry. The research question appears to be fairly unique and un-addressed in previous research. The analysis is proposing hypothetical implications indicating a need for change in at least three essential dimensions. The first dimension (1) discusses implications of transforming existing means of production to fit a new and changed situation. The second (2) focuses on implications of relationships between established actors in industrial networks. The third (3) discusses the importance of having previous experiences and knowledge in acting as a supplier.