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Title: How aerospace systems integrators create and appropriate value
Author: Chen, B. C.-H.
Awarding Body: University of Cambridge
Current Institution: University of Cambridge
Date of Award: 2004
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This research examined the systems integrator (SI) role which has become a key business model and organising logic impacting products, processes, and the supply network in the aerospace industry. The first portion of the research examined the context of the phenomenon through a sector analysis and literature review. The sector analysis provided background on historical trends and developments in aerospace and focused on forces concentrating and dispersing the supply network. It found that the evolution of the aerospace industry can be best described as a punctuated equilibrium whose chief determinants are value, coordination and integration, and that the SI role may be an enabler in this evolution process. The second section investigated the content of the SI role by mapping its activities and the overall evolution of the SI role in three case companies. A set of core SI activities were found, mainly in the final system assembly, testing, and verification stages of production. However, each of the case companies had a different strategy in leveraging these activities over the rest of their operations. Three main integrator archetypes were found, focusing on the product, process, and supply network respectively. The final section linked the SI activities back to strategy through two dynamic processes: value creation and appropriation. Value creation is determined by coordination intensity, entrepreneurial intensity, scale economies and scope economies. Value appropriation is determined by risk tolerance, market power, resource ownership and resource complementarity. The impact of SI activities on each of these eight factors were discussed.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available