International Political Economy in Global Production Management: A Case Study of Amazon’s Strategies for Innovation, Efficiency, and Adaptation in the Digital Age

A Case Study of Amazon’s Strategies for Innovation, Efficiency, and Adaptation in the Digital Age

Abstract

The rapid advancement of digital technology has fundamentally transformed global production systems, compelling multinational corporations to continuously innovate, improve operational efficiency, and adapt to increasingly dynamic market conditions. This study analyzes Amazon's global production and operations management strategy from the perspective of International Political Economy (IPE), emphasizing three key dimensions efficiency, innovation, and digital adaptation. Employing a qualitative descriptive approach with a single case study design, the research relies on document analysis from company reports, academic literature, and industry publications. The findings indicate that Amazon's competitive advantage is driven by integrated logistics management, extensive utilization of artificial intelligence and automation, and continuous business model innovation through platform diversification, cloud computing, and digital services. From an International Political Economy perspective, Amazon represents not only a multinational corporation but also a dominant digital platform that increasingly shapes global value chains, data governance, and international trade structures. The study argues that Amazon's operational excellence simultaneously creates opportunities for productivity growth while reinforcing the concentration of digital economic power among a limited number of global actors. These findings provide important implications for developing countries, including Indonesia, in designing strategies to strengthen competitiveness while maintaining economic sovereignty within the evolving digital economy.