1 Exploiting the potential of manufacturing network embeddedness: an OM perspective Ruggero Golini (ruggero.golini@unibg.it) Università degli Studi di Bergamo, Department of Engineering Patricia Deflorin University of Applied Sciences HTW Chur, Swiss Institute for Entrepreneurship Maike Scherrer-Rathje University of St.Gallen, Institute of Technology Management Please cite this article as: Golini, R., Patricia, D. and Scherrer-Rathje, M. (2016), "Exploiting the potential of manufacturing network embeddedness: an OM perspective", International Journal of Operations & Production Management, Vol. 36, No. 12, pp. 1741-1768. DOI: http://dx.doi.org/10.1108/IJOPM-11-2014-0559 Abstract Purpose – This paper provides guidance in setting the level of autonomy (i.e. parental control) of plants in a network to enhance operational performance. In particular, the effect of autonomy on performance is analysed directly and indirectly through internal manufacturing network integration and external supply chain integration as two dimensions of manufacturing network embeddedness. Design/methodology/approach – The analysis is based on data from 441 manufacturing plants in 17 countries. Data were gathered during the sixth International Manufacturing Strategy Survey. Five main constructs were obtained after carrying out a confirmatory factor analysis: plant autonomy, internal manufacturing network integration, external supply chain integration, efficiency and effectiveness. Direct and indirect relationships among the constructs are tested through a structural equation model. Findings – Higher levels of autonomy correlate with higher effectiveness and similar efficiency. However, lower autonomy leads to higher levels of manufacturing network and supply chain integration, which enhance performance. Although not statistically significant, the analysis of the total effects reveals a mildly positive effect of autonomy on effectiveness and negative effect on efficiency, which requires further investigation.