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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

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.

Suggested Citation

  • Eng, Teck-Yong & Spickett-Jones, J. Graham, 2009. "An investigation of marketing capabilities and upgrading performance of manufacturers in mainland China and Hong Kong," Journal of World Business, Elsevier, vol. 44(4), pages 463-475, October.
  • Handle: RePEc:eee:worbus:v:44:y:2009:i:4:p:463-475
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    References listed on IDEAS

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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.
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    10. 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, June.
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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.
    2. Stav Fainshmidt & Amir Pezeshkan & M. Lance Frazier & Anil Nair & Edward Markowski, 2016. "Dynamic Capabilities and Organizational Performance: A Meta-Analytic Evaluation and Extension," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1348-1380, December.

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