Impact of AM adoption on upstream SC-TCE constructs applied to the four patterns of AM adoption
| Variables | TCE constructs | |||
|---|---|---|---|---|
| Asset specificity | Frequency | Uncertainty | ||
| Definition |
|
|
| |
| Make and buy | Buy (collaborative) | Not relevant-AM does not require relationship-specific investments since the technology is inherently flexible, while the specificity is confined to the digital model of the product | Low- the investment in AM is not justified when there is an infrequent use of the technology | Low- AM mainly used for rapid prototyping, there is not a high uncertainty due to the low-quality requirements on production and consequent low need to have control over production |
| Make (plastic) and buy (metal) | Medium (plastic) - investment in AM is justified by a frequent use of the technology either for rapid prototyping or for rapid manufacturing Low (metal) - the investment in AM is not justified for metal additive production as this usage is occasional and there is a consequent lack of competence that makes more convenient to outsource | Medium (plastic) - more frequent usage of the technology brings more control over production, that leads to the decision to internalize additive manufacturing Medium (metal) - the requirements are high when printing components in metal for rapid manufacturing. Not being able to internalize production, close long-term relationships with suppliers are set | ||
| Make | High- after a process of acquisition of knowledge and experience with the technology (from RP to RM), companies opt to purchase machines since AM usage increased | High- the more frequent use of AM for rapid manufacturing rather than for rapid prototyping brings the company to have a higher need to control production to satisfy quality requirements | ||
| Vertical integration | Very high- experience and frequency of usage high enough to internalize the production choosing the integration of the supplier | Very high- the uncertainty on the technology brings the need to have a total control over production, that in turn leads to internalize additive manufacturing by acquiring suppliers | ||
| SC design | Centralization | Not relevant-AM does not require relationship-specific investments since the technology is inherently flexible, while the specificity is confined to the digital model of the product | Not relevant- frequency does not have an impact on centralization choice in our cases: Both in cases of rapid prototyping, and in those of rapid tooling or manufacturing, the choice falls on a centralized approach | Uncertainty may induce companies in centralizing the production internally to guarantee a higher control over production. Despite not having cases of distributed manufacturing, outsourcing production towards an external distributed network may imply losing control. Thus, high uncertainty will lead firms to opt for a centralized approach |
| Impact on supply network | Increase in the number of suppliers | AM does not require relationship-specific investments since the technology is inherently flexible, while the specificity is confined to the digital model of the product | High frequency (from RP to RM) implies a higher number of new actors and vendors involved in the supply base (certificatory body, AM-related service providers, etc.) | Higher uncertainty means higher need to control production and assure quality. It implies having stronger relationships with suppliers that, in some cases, may lead to a lock-in effect in the buyer-supplier relationship |
| New actors in the supply network | ||||
| New roles and relationship | ||||
| Variables | TCE constructs | |||
|---|---|---|---|---|
| Asset specificity | Frequency | Uncertainty | ||
| Definition | - Relationship specific investments (RSIs): investments specific to the buyer-supplier relationship | - Experience level with the technology: the higher the experience, the more frequent the usage of AM - Investments in technology and skilled human resources: the more frequent the usage of the technology, the higher the need to purchase printers and hire skilled and competent human resources | - Control over production: the higher the need for certifications and qualified products, the higher the need to reduce the uncertainty | |
| Make and buy | Buy (collaborative) | Not relevant-AM does not require relationship-specific investments since the technology is inherently flexible, while the specificity is confined to the digital model of the product | Low- the investment in AM is not justified when there is an infrequent use of the technology | Low- AM mainly used for rapid prototyping, there is not a high uncertainty due to the low-quality requirements on production and consequent low need to have control over production |
| Make (plastic) and buy (metal) | Medium (plastic) - investment in AM is justified by a frequent use of the technology either for rapid prototyping or for rapid manufacturing | Medium (plastic) - more frequent usage of the technology brings more control over production, that leads to the decision to internalize additive manufacturing | ||
| Make | High- after a process of acquisition of knowledge and experience with the technology (from RP to RM), companies opt to purchase machines since AM usage increased | High- the more frequent use of AM for rapid manufacturing rather than for rapid prototyping brings the company to have a higher need to control production to satisfy quality requirements | ||
| Vertical integration | Very high- experience and frequency of usage high enough to internalize the production choosing the integration of the supplier | Very high- the uncertainty on the technology brings the need to have a total control over production, that in turn leads to internalize additive manufacturing by acquiring suppliers | ||
| SC design | Centralization | Not relevant-AM does not require relationship-specific investments since the technology is inherently flexible, while the specificity is confined to the digital model of the product | Not relevant- frequency does not have an impact on centralization choice in our cases: Both in cases of rapid prototyping, and in those of rapid tooling or manufacturing, the choice falls on a centralized approach | Uncertainty may induce companies in centralizing the production internally to guarantee a higher control over production. Despite not having cases of distributed manufacturing, outsourcing production towards an external distributed network may imply losing control. Thus, high uncertainty will lead firms to opt for a centralized approach |
| Impact on supply network | Increase in the number of suppliers | AM does not require relationship-specific investments since the technology is inherently flexible, while the specificity is confined to the digital model of the product | High frequency (from RP to RM) implies a higher number of new actors and vendors involved in the supply base (certificatory body, AM-related service providers, etc.) | Higher uncertainty means higher need to control production and assure quality. It implies having stronger relationships with suppliers that, in some cases, may lead to a lock-in effect in the buyer-supplier relationship |
| New actors in the supply network | ||||
| New roles and relationship | ||||
Source(s): Created by author