The capability profiles of global production networks: an empirical typology to identify opportunities for network reconfiguration and calibration

This paper develops an empirically-grounded typology of global production networks based on their capability profiles, which allows for the identification of managerial steps to improve a production network's performance. Clustering our survey data on network capabilities, we find five distinct types of networks: (1) externally focused networks, (2) unfocused networks, (3) low-capability networks, (4) internally focused networks and (5) all-round networks. Based on our statistical analyses of performance differences between clusters and within clusters, we suggest two types of network improvement strategies: Reconfiguration, namely, the change to a structurally similar but higher-performing network type; and calibration, that is, targeted capability adjustments within a given network type. On a conceptual level, we deviate from the atomistic approach taken by network typologies predominant in the literature, reducing complexity not by decomposing networks into their individual subunits but by categorizing their capability profiles and analysing their associated improvement potential.