Site Selection Processes in Global Production Networks

Production-related location choices are long-term, complex, difficult to reverse, and based on uncertain information. They constitute a high risk for a company as they are crucial for its long-term financial strength and performance. International Manufacturing Networks have become very complex as most companies have production sites all over the world. The increasing interconnectedness between these sites leads to even more factors that need to be taken into account when deciding on where to locate another production site. Only one in five companies succeeds in this process.