Comparing and Improving the Performance of Multinational Subcontractors in Metalworking – A Comparative Case Study

Companies aim to stay competitive while ensuring that subcontracting networks play a key role. This study examines multinational subcontractors to identify factors affecting competitiveness, comparing countries with different income levels. Salary costs are generally expected to directly impact product prices. The study’s goal is to find measures that highlight development targets and methods to improve productivity for both customers and subcontractors. In addition to component price, the research examines service delivery and quality indicators that influence the customer’s competitiveness. Profitability depends on identifying development areas that impact overall competitiveness. However, deficiencies in the production engineering development activities of the subcontractors were found, which could have improved their competitiveness. Results also showed that the primary factor influencing the customer’s purchasing decision was component price, often leading to orders being placed outside Finland, due to lower costs. This underscores the need for subcontractors to focus on total overall productivity to maintain a competitive advantage in global markets.