Skip to main content

3D Printing as Driver of Localized Manufacturing: Expected Benefits from Producer and Consumer Perspectives

  • Chapter
  • First Online:
The Decentralized and Networked Future of Value Creation

Part of the book series: Progress in IS ((PROIS))

Abstract

Ihl and Piller address the promise of 3D printing technologies to re-localize production in closer proximity to markets and end customers by exploring microeconomic benefits for producers and consumers. These technologies give rise to new possibilities at the intersection of production and consumption and fuel recent trends like mass customization and the maker movement. Building upon these premises, the authors propose the concept of “FabStores”, i.e. decentralized, close-to-market mini-factories that allow interaction with customers during localized manufacturing processes. The concept is validated in terms of expected benefits from producer and consumer perspectives by the means of a survey of 39 experts in production management, as well as 788 consumers. Results show that, from a producer perspective, the availability of 3D printing technologies alone will only have limited impact on the localization of manufacturing next to other, more important drivers. From a consumer perspective, “FabStores” are valuable if they can offer higher sustainability, participation in production and shorter delivery times. Finally, “FabStores” may compensate for a lack of brand reputation and thus offer new opportunities for user and maker entrepreneurship.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Anderson, E. W., & Shugan, S. M. (1991). Repositioning for changing preferences: The case of Beef versus Poultry. The Journal of Consumer Research, 18, 219–232.

    Article  Google Scholar 

  • Baldwin, C., Hienerth, C., & von Hippel, E. (2006). How user innovations become commercial products: A theoretical investigation and case study. Research Policy, 35(9), 1291–1313.

    Article  Google Scholar 

  • Berman, B. (2012). 3-D printing: The new industrial revolution. Business Horizons, 55(2), 155–162.

    Article  Google Scholar 

  • Berry, L. L., Seiders, K., & Grewal, D. (2002). Understanding service convenience. Journal of Marketing, 66(3), 1–17.

    Article  Google Scholar 

  • Bowyer, A., Bradshaw, S., & Haufe, P. (2010). The intellectual property implications of low-cost 3D printing. SCRIPTed, 7(1), 5–31.

    Google Scholar 

  • Buzacott, J. A., & Yao, D. D. (1986). Flexible manufacturing systems: A review of analytical models. Management Science, 32(7), 890–905.

    Article  Google Scholar 

  • Chandler, A. D. (1990). Scale and scope: The dynamics of industrial capitalism. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Childers, T. L., Carr, C. L., Peck, J., & Carson, S. (2001). Hedonic and utilitarian motivations for online retail shopping behavior. Journal of Retailing, 77(4), 511–535.

    Article  Google Scholar 

  • Corey, R. E. (1978). Should companies centralize procurement? Harvard Business Review, 82(2), 102–110.

    Google Scholar 

  • Cuhls, K., Ganz, W., Warnke, P. (Eds.) (2009). Foresight-Prozess im Auftrag des BMBF. Zukunftsfelder neuen Zuschnitts. Auszug ProduzierenKonsumieren 2.0.

    Google Scholar 

  • D’Aveni, R. (2015). The 3D printing revolution. Harvard Business Review, 40–48.

    Google Scholar 

  • Dabholkar, P. A., & Bagozzi, R. P. (2002). An attitudinal model of technology-based self-service: Moderating effects of consumer traits and situational factors. Journal of the Academy of Marketing Science, 30(3), 184–201.

    Article  Google Scholar 

  • Dellaert, B. G. C., & Dabholkar, P. A. (2009). Increasing the attractiveness of mass customization. International Journal of Electronic Commerce, 13(3), 43–70.

    Article  Google Scholar 

  • Eaton, B. C., & Schmitt, N. (1994). Flexible manufacturing and market structure. American Economic Review, 84(4), 875–888.

    Google Scholar 

  • El Maraghy, H. (2005). Flexible and reconfigurable manufacturing systems paradigms. International Journal of Flexible Manufacturing Systems, 17(4), 261–276.

    Article  Google Scholar 

  • Eppen, G. D. (1979). Effects of centralization on expected costs in a multi-location newsboy problem. Management Science, 25(5), 498–501.

    Article  Google Scholar 

  • Feen, J. (2007). Understanding Gartner’s hype cycles. Gartner research, ID Number: G00144727.

    Google Scholar 

  • Feitzinger, E., & Lee, H. L. (1997). Mass customization at Hewlett-Packard: The power of postponement. Harvard Business Review, 75(1), 116–121.

    Google Scholar 

  • Franke, N., & Schreier, M. (2010). Why customers value mass-customized products: The importance of process effort and enjoyment. Journal of Product Innovation Management, 27(12), 1020–1031.

    Article  Google Scholar 

  • Franke, N., & Piller, F. (2004). Value creation by toolkits for user innovation and design: The case of the watch market. Journal of Product Innovation Management, 21(6), 401–415.

    Article  Google Scholar 

  • Franke, N., Keinz, P., & Steger, C. (2009). Testing the value of customization: When do customers really prefer products tailored to their preferences? Journal of Marketing, 73(5), 103–121.

    Article  Google Scholar 

  • Franke, N., Schreier, M., & Kaiser, U. (2010). The “I designed it myself” effect in mass customization. Management Science, 56(1), 125–140.

    Article  Google Scholar 

  • Franke, N., Keinz, P., & Schreier, M. (2008). Complementing mass customization toolkits with user communities: How peer input improves customer self-design. Journal of Product Innovation Management, 25(6), 546–559.

    Article  Google Scholar 

  • Frohlich, M. T., & Dixon, J. R. (2001). A taxonomy of manufacturing strategies revisited. Journal of Operations Management, 19(5), 541–558.

    Article  Google Scholar 

  • Gebler, M., Uiterkamp, A. J. S., & Visser, C. (2014). A global sustainability perspective on 3D printing technologies. Energy Policy, 74, 158–167.

    Article  Google Scholar 

  • Gibson, I., Rosen, D., & Stucker, B. (2009). Additive manufacturing technologies: Rapid prototyping to direct digital manufacturing. New York/Berlin: Springer.

    Google Scholar 

  • Harhoff, D., Henkel, J., & von Hippel, E. (2003). Profiting from voluntary information spillovers: How users benefit by freely revealing their innovations. Research Policy, 32(10), 1753–1769.

    Article  Google Scholar 

  • Hopkinson, N., Hague, R. J. M., & Dickens, P. M. (Eds.). (2006). Rapid manufacturing. New York: Wiley.

    Google Scholar 

  • Huffman, C., & Kahn, B. E. (1998). Variety for sale: Mass customization or mass confusion? Journal of Retailing, 74(4), 491–513.

    Article  Google Scholar 

  • Ihl, J. C. (2009). Marketing for mass customization—consumer behavior and marketing policies in the context of customizable products. Dissertation, 1–230.

    Google Scholar 

  • Jarkas, A. M. (2010). Critical investigation into the applicability of the learning curve theory to rebar fixing labor productivity. Journal of Construction Engineering and Management, 136(12), 1279–1288.

    Article  Google Scholar 

  • Jung, H. (2007). Controlling. München, Oldenbourg: Wissenschaftsverlag.

    Google Scholar 

  • Kleer, R., & Piller, F. (2013). Modeling benefits of local production by users: Welfare effects of radical innovation in flexible manufacturing utilizing additive manufacturing and 3D printing (Arbeitspapier).

    Google Scholar 

  • Lee, B.-C., Ang, L., & Dubelaar, C. (2005). Lemons on the web: A signalling approach to the problem of trust in internet commerce. Journal of Economic Psychology, 26(5), 607–623.

    Article  Google Scholar 

  • Lindemann, U. (2009). Methodische Entwicklung technischer Produkte—Methoden flexibel und situationsgerecht anwenden. Berlin/Heidelberg: Springer Verlag.

    Book  Google Scholar 

  • Loch, C., Terwiesch, C., & Thomke, S. (2001). Parallel and sequential testing of design alternatives. Management Science, 47(5), 663–678.

    Article  Google Scholar 

  • Lu, R. F., Petersen, T. D., & Storch, R. L. (2009). Asynchronous stochastic learning curve effects in engineering-to-order customization processes. International Journal of Production Research, 47(5), 1309–1329.

    Article  Google Scholar 

  • Mellor, S., Hao, L., & Zhang, D. (2014). Additive manufacturing: A framework for implementation. International Journal of Production Economics, 149, 194–201.

    Article  Google Scholar 

  • Milgrom, P., & Roberts, J. (1990). The economics of modern manufacturing: Technology, strategy, and organization. The American Economic Review, 80(3), 511–528.

    Google Scholar 

  • Miller, J. G., & Roth, A. V. (1994). A taxonomy of manufacturing strategies. Management Science, 40(3), 285–304.

    Google Scholar 

  • Mohr, L. A., & Bitner, M. J. (1995). The role of employee effort in satisfaction with service transactions. The Journal of Business Research, 32(3), 239–252.

    Article  Google Scholar 

  • Peck, J., & Shu, S. B. (2009). The effect of mere touch on perceived ownership. The Journal of Consumer Research, 36(3), 434–447.

    Article  Google Scholar 

  • Peck, J., & Wiggins, J. (2006). It just feels good: Customers’ affective response to touch and its influence on persuasion. The Journal of Marketing, 70(4), 56–69.

    Article  Google Scholar 

  • Petrovic, V., Gonzalez, J., Ferrando, O., Gordillo, J., Puchades, J., & Grinan, L. (2011). Additive layered manufacturing: Sectors of industrial application shown through case studies. International Journal of Production Research, 49(4), 1071–1079.

    Article  Google Scholar 

  • Piller, F. T. (2004). Mass customization: Reflections on the state of the concept. International Journal of Flexible Manufacturing Systems, 16(4), 313–334.

    Article  Google Scholar 

  • Rawsthrone, A. (2013, Jan 1). In the new year, products with personal touch. The New York Times (International Edition).

    Google Scholar 

  • Reeves, P. (2008). How the socio-economic benefits of Rapid Manufacturing can be used to off-set the technological limitations. In R. Hague (Ed.), Proceedings of the 2008 International Conference on Additive Manufacturing. Loughborough University.

    Google Scholar 

  • Reeves, P. (2012). Putting 3D printing into your value stream. Presentation Outline, 3D Printshow 2012, London, Oct 19, 2012.

    Google Scholar 

  • Reichwald, R., Piller, F. T., Stotko, C. M., & Ihl, J. C. (2005a). Marktnahe Produktion individueller Produkte in dezentralen Mini-Fabriken. In B. Kaluza & T. Blecker (Eds.), Erfolgsfaktor Flexibilität—Strategien und Konzepte für wandlungsfähige Unternehmen (pp. 175–202). Berlin: Erich Schmidt Verlag.

    Google Scholar 

  • Reichwald, R., Stotko, C. M., & Piller, F. T. (2005b). Distributed mini-factory networks as a form of real-time enterprise: Concept, flexibility potential and case studies. In B. Kuglin & H. Thielmann (Eds.), The practical real-time enterprise—Facts and perspectives (pp. 407–438). Springer: Berlin/Heidelberg.

    Google Scholar 

  • Reinhart, G., Effert, C., Grunwald, S., Piller, F., & Wagner, W. (2000). Minifabriken für die marktnahe Produktion. Zeitschrift für wirtschaftlichen Fabrikbetrieb, 95(12), 597–600.

    Google Scholar 

  • Salvador, F., De Holan, P. M., & Piller, F. (2009). Cracking the code of mass customization. MIT Sloan Management Review, 50(3), 71–78.

    Google Scholar 

  • Schwenk, J., & Thyroff, A. (2011). Chancen und Risiken des Global Sourcing: ein Ratgeber für kleine und mittlere Unternehmen– kurz und kompakt. Laichingen/Hamburg: Books on Demand GmbH.

    Google Scholar 

  • Seiders, K., Voss, G. B., Godfrey, A. L., & Grewal, D. (2007). SERVCON: Development and validation of a multidimensional service convenience scale. The Journal of the Academy of Marketing Science, 35, 144–156.

    Article  Google Scholar 

  • Shah, S., Smith, S., & Reedy, E. (2012). Who are user entrepreneurs? findings on innovation, founder characteristics, and firm characteristics. Kansas City, MO: Kauffman Foundation.

    Google Scholar 

  • Shah, S. K., & Tripsas, M. (2007). The accidental entrepreneur: The emergent and collective process of user entrepreneurship. Strategic Entrepreneurship Journal, 1(1), 123–140.

    Article  Google Scholar 

  • Silberston, A. (1972). Economies of scale in theory and practice. The Economic Journal, 82(325), 369–391.

    Article  Google Scholar 

  • Skinner, W. (1969). Manufacturing: Missing link in corporate strategy. Harvard Business Review, 47(3), 136–144.

    Google Scholar 

  • The Economist (2011, February 10). Print me a Stradivarius: How a new manufacturing technology will change the world. The Economist.

    Google Scholar 

  • The Economist (2012, April 21). A third industrial revolution. The Economist, p. 45.

    Google Scholar 

  • Thomas, H. R., Mathews, C. T., & Ward, J. G. (1986). Learning curve models of construction productivity. Journal of Construction Engineering and Management, 112(2), 245–258.

    Article  Google Scholar 

  • Train, K. (2009). Discrete choice methods with simulation. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Tumbleston, J. R., Shirvanyants, D., Ermoshkin, N., Janusziewicz, R., Johnson, A. R., Kelly, D., et al. (2015). Continuous liquid interface production of 3D objects. Science, 347(6228), 1349–1352.

    Article  Google Scholar 

  • Van Hoeck, R. I., Commandeur, H. R., & Vos, B. (1998). Reconfiguring logistics systems through postponement strategies. The Journal of Business Logistics, 19(1), 33–54.

    Google Scholar 

  • Vance, A. (2012, April 26). 3D Printers: Make whatever you want. Bloomberg Business Week.

    Google Scholar 

  • Venkatesh, V., & Davis, F. D. (2000). A theoretical extension of the technology acceptance model: Four Longitudinal field studies. Management Science, 46(2), 186–204.

    Article  Google Scholar 

  • von Hippel, E. (1994). “Sticky information” and the locus of problem solving: Implications for innovation. Management Science, 40(4), 429.

    Article  Google Scholar 

  • von Hippel, E. (2001). Perspective: User toolkits for innovation. Journal of Product Innovation Management, 18(4), 247–257.

    Article  Google Scholar 

  • von Hippel, E. (2005). Democratizing innovation. Cambridge, MA: MIT Press.

    Google Scholar 

  • von Hippel, E., Ogawa, S., & Jong, J. D. (2011). The age of the consumer-innovator. MIT Sloan Management Review, 53(1), 27–35.

    Google Scholar 

  • Williamson, O. E. (1981). On the nature of the firm: Some recent developments. Journal of Institutional and Theoretical Economics, 137(4), 675–680.

    Google Scholar 

  • Wittke, V. (1996). Wie entstand die industrielle Massenproduktion? Berlin: edition Sigma.

    Google Scholar 

  • Wohlers, T. (2012). Wohlers report 2012: Additive manufacturing state of the industry annual worldwide progress report. Fort Collins, CO: Wohlers Associates.

    Google Scholar 

  • Yang, B., Burns, N., & Backhouse, C. (2004). Postponement: A review and an integrated framework. International Journal of Operations & Production Management, 24(5), 468–487.

    Article  Google Scholar 

  • Zangemeister, C. (1976). Nutzwertanalyse in der Systemtechnik—Eine Methodik zur multidimensionalen Bewertung und Auswahl von Projektalternativen (Dissertation). München: Wittemannsche Buchhandlung.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Christoph Ihl .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2016 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Ihl, C., Piller, F. (2016). 3D Printing as Driver of Localized Manufacturing: Expected Benefits from Producer and Consumer Perspectives. In: Ferdinand, JP., Petschow, U., Dickel, S. (eds) The Decentralized and Networked Future of Value Creation. Progress in IS. Springer, Cham. https://doi.org/10.1007/978-3-319-31686-4_10

Download citation

Publish with us

Policies and ethics