Global Operations Management

Book chapter, 2024

This chapter considers the factors that influence why companies and industries internationalise operations and use globalisation to pursue competitive operations strategies. It describes how, historically, industrialised economies have sought resources and exploited overseas markets and later offshored operations to optimise costs. It also explores why the concern has shifted towards resilience and sustainability in recognition of how natural events, as well as political and economic risks, can offset the benefits of globalising operations. The chapter examines how different forms of inter-firm relationship and ownership shape how global operations function, as well as considering how emerging country firms compete in entry markets. In this regard, digital technologies – and the transfer of technology and knowledge between developed and developing countries – is an important concern for transforming businesses. In the final section, we identify some ‘takeaway’ messages together with the implications for teaching and learning in operations management courses.