TY - JOUR

T1 - From cost to capability

T2 - Technology Multiplier in EV manufacturing strategy

AU - Girke, Roman

AU - Schäfer, Louis

AU - Maier, Tanja

AU - Stamer, Florian

AU - Yang, Shun

AU - Chun, Jung Hoon

AU - Lanza, Gisela

N1 - Publisher Copyright: © 2025 The Authors

PY - 2025/10

Y1 - 2025/10

N2 - In an increasingly dynamic and uncertain global environment, companies face significant challenges in aligning production strategies with long-term competitiveness and innovation. Many firms focus on short-term cost savings through outsourcing and relocation, which can negatively impact internal knowledge, capabilities, and long-term growth. This study explores the strategic decision-making process of production segment allocation, emphasizing the need for a systematic and holistic approach. Using the Analytical Hierarchy Process (AHP), key decision factors are introduced, including cost, innovation capability, and social impact. The qualitative study is applied to the case of electric vehicle (EV) battery production, where in-house production, outsourcing, and joint ventures are evaluated. The results reveal key drivers such as design capabilities and customer centricity, highlighting the strategic importance of maintaining core technological capabilities in-house. The study provides a foundation for the concept of a ”Technology Multiplier” to quantify the long-term value of in-house production in terms of innovation, adaptability, and competitive advantage, offering a new framework for strategic manufacturing decisions.

AB - In an increasingly dynamic and uncertain global environment, companies face significant challenges in aligning production strategies with long-term competitiveness and innovation. Many firms focus on short-term cost savings through outsourcing and relocation, which can negatively impact internal knowledge, capabilities, and long-term growth. This study explores the strategic decision-making process of production segment allocation, emphasizing the need for a systematic and holistic approach. Using the Analytical Hierarchy Process (AHP), key decision factors are introduced, including cost, innovation capability, and social impact. The qualitative study is applied to the case of electric vehicle (EV) battery production, where in-house production, outsourcing, and joint ventures are evaluated. The results reveal key drivers such as design capabilities and customer centricity, highlighting the strategic importance of maintaining core technological capabilities in-house. The study provides a foundation for the concept of a ”Technology Multiplier” to quantify the long-term value of in-house production in terms of innovation, adaptability, and competitive advantage, offering a new framework for strategic manufacturing decisions.

KW - Distributed manufacturing

KW - Integration

KW - Manufacturing network

KW - Production planning

KW - Engineering

UR - http://www.scopus.com/inward/record.url?scp=105008789151&partnerID=8YFLogxK

U2 - 10.1016/j.jmsy.2025.06.008

DO - 10.1016/j.jmsy.2025.06.008

M3 - Journal articles

AN - SCOPUS:105008789151

VL - 82

SP - 319

EP - 332

JO - Journal of Manufacturing Systems

JF - Journal of Manufacturing Systems

SN - 0278-6125

ER -