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STABILITY AND CHANGE IN THE SUPPLY CHAINS OF MULTINATIONAL PLANTS

The paper explores the extent of stability and change in the supply chains of multinational plants, using data from a sample of 50 plants in Yorkshire and Humberside (UK). Distinctively the ‘voices’ of plant managers are used to explain the observed patterns. Overall, the supply chains of MNE plants were characterised by high levels of stability during the five-year period under consideration. This stability is explained by a lack of alternative suppliers, satisfaction with existing suppliers, perceived benefits derived from continuity, sunk costs in existing suppliers, and, in some cases, managerial complacency. Where supply chain patterns have changed, changes are associated with changes in production, changes in supply chain strategy, or exogenous factors, such as heightened competition or changes the geography of potential suppliers. On the whole, recent changes have seen an increase in sourcing from suppliers outside the UK.