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Cooperating for supply chain effectiveness: manufacturing strategy for Chinese OEMs

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  • Bou-Wen Lin

Abstract

As the world economy has become increasingly integrated, Chinese manufacturers play the role of world factories in the global value networks for many industries. The study examines the role of Chinese OEMs in the global supply chain and how the OEMs can enhance supply chain effectiveness. There is no single best strategy for OEM suppliers. They can choose either to be dedicated OEM service providers or to build their own-brand products. Both can achieve high supply chain effectiveness. However, once the OEM strategy is chosen, the way to manage the supply chain should be different. Dedicated OEM suppliers should emphasise particularly manufacturing flexibility in pursuing supply chain performance. Product modularity has a possibly negative impact on supply chain performance. For both dedicated OEM suppliers and own-brand ones, goal congruence is essential for supply chain performance. Managerial implications for this study are also discussed.

Suggested Citation

  • Bou-Wen Lin, 2003. "Cooperating for supply chain effectiveness: manufacturing strategy for Chinese OEMs," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 5(3), pages 232-245.
    • Handle: RePEc:ids:ijmtma:v:5:y:2003:i:3:p:232-245
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    Citations

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    Cited by:

    1. Fang, Edward Aihua & Wu, Qizhi & Miao, Chaowei & Xia, Jiansheng & Chen, Dezhi, 2013. "The impact of new product & operations technological practices on organization structure," International Journal of Production Economics, Elsevier, vol. 145(2), pages 733-742.
    2. Brylowski, Martin & Ludwig, Maximilian & Kersten, Wolfgang & Schultze, Wolfgang, 2020. "Product modularization in integrated supply chains: A product life-cycle phase specific concept for effect allocation," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Data Science and Innovation in Supply Chain Management: How Data Transforms the Value Chain. Proceedings of the Hamburg International Conference of Lo, volume 29, pages 25-76, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    3. Marta Pérez-Pérez & Canan Kocabasoglu-Hillmer & Ana María Serrano-Bedia & María Concepción López-Fernández, 2019. "Manufacturing and Supply Chain Flexibility: Building an Integrative Conceptual Model Through Systematic Literature Review and Bibliometric Analysis," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 1-23, December.
    4. Lau Antonio, K.W. & Yam, Richard C.M. & Tang, Esther, 2007. "The impacts of product modularity on competitive capabilities and performance: An empirical study," International Journal of Production Economics, Elsevier, vol. 105(1), pages 1-20, January.

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