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An investigation of marketing capabilities and upgrading performance of manufacturers in mainland China and Hong Kong

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  • Eng, Teck-Yong
  • Spickett-Jones, J. Graham
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    Abstract

    Although Chinese manufacturers are considered as latecomers or followers in global commodity chains, they have also been experiencing rapid progress in upgrading performance from own equipment manufacturing (OEM), original design manufacturing (ODM) to own brand manufacturing (OBM). Current literature on the global commodity chain has focused primarily on economic conditions that help explain manufacture upgrade while giving limited attention to what marketing capabilities support and sustain firm competitiveness through upgrading. This article examines eight different marketing capabilities to assess influence on manufacture upgrade performance. A survey of electronics manufacturers in mainland China and Hong Kong shows the significance of individual marketing capabilities and implications of their interdependency for manufacture upgrade performance. In particular, product development, marketing communication and channel management capabilities are crucial for manufacture upgrade. The results also highlight the importance of selective marketing capability development and the potential of secondary support for the relationship between substantive and dynamic capabilities.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 44 (2009)
    Issue (Month): 4 (October)
    Pages: 463-475

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    Handle: RePEc:eee:worbus:v:44:y:2009:i:4:p:463-475

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    Keywords: Manufacture upgrade Marketing capabilities OEM-ODM-OBM;

    References

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    1. Tan, Justin, 2007. "Phase transitions and emergence of entrepreneurship: The transformation of Chinese SOEs over time," Journal of Business Venturing, Elsevier, vol. 22(1), pages 77-96, January.
    2. Shantanu Dutta & Om Narasimhan & Surendra Rajiv, 1999. "Success in High-Technology Markets: Is Marketing Capability Critical?," Marketing Science, INFORMS, vol. 18(4), pages 547-568.
    3. Kyung-Il Ghymn, 1980. "Multinational Enterprises from the Third World," Journal of International Business Studies, Palgrave Macmillan, vol. 11(2), pages 118-122, June.
    4. Krishna Kumar & Kee Young Kim, 1984. "The Korean Manufacturing Multinationals," Journal of International Business Studies, Palgrave Macmillan, vol. 15(1), pages 45-61, March.
    5. Hollenstein, Heinz, 1996. "A composite indicator of a firm's innovativeness. An empirical analysis based on survey data for Swiss manufacturing," Research Policy, Elsevier, vol. 25(4), pages 633-645, June.
    6. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, 06.
    7. Humphrey, John & Chen, Martha, 2004. "Upgrading in global value chains," ILO Working Papers 369852, International Labour Organization.
    8. Hobday, Mike, 1995. "East Asian latecomer firms: Learning the technology of electronics," World Development, Elsevier, vol. 23(7), pages 1171-1193, July.
    9. Rugman, Alan M. & Oh, Chang Hoon, 2008. "Korea's multinationals in a regional world," Journal of World Business, Elsevier, vol. 43(1), pages 5-15, January.
    10. Helfat, C.E. & Raubitschek, R.S., 2000. "Product Sequencing: Co-Evolution of Knowledge, Capabilities and Products," Papers 00-1, U.S. Department of Justice - Antitrust Division.
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    Cited by:
    1. Zhang, Bin, 2011. "Optimal policy for a mixed production system with multiple OEM and OBM products," International Journal of Production Economics, Elsevier, vol. 130(1), pages 27-32, March.

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