Author:
Pritchard D.,MacPherson A.
Abstract
Abstract
This paper offers a critical perspective on the changing organisational structure of the Western commercial aircraft industry. The role of systems integration based on risk-sharing partnerships for new aircraft programmes is explored. We find that build-to-print subcontracting relationships are being replaced by internationally devolved design and engineering tasks for airframe development, signaling a profound change in the geography of commercial aircraft production. While sensible from a financial standpoint, the international outsourcing of design-intensive production entails substantial amounts of technology transfer–including the delivery of proprietary knowledge to risk-sharing partners. For several of the advanced market economies, including Canada, France, Germany, the UK, and the US, the long-range strategic downside is that foreign risk-sharing partners could eventually become competitors. Systems integration on a risk-sharing basis also implies home-country joblosses among skilled workers with expertise in design, engineering, and R&D.
Publisher
Cambridge University Press (CUP)
Cited by
7 articles.
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