Original equipment manufacturers (OEM) manufacturing strategy for network innovation agility: The case of Taiwanese manufacturing networks
Journal
International Journal of Production Research
Journal Volume
42
Journal Issue
5
Pages
943-957
Date Issued
2004
Author(s)
Abstract
Manufacturing companies in newly industrialized countries contribute substantially to their global innovation networks. Those manufacturers perform not only production and physical distribution functions, but also design and engineering functions in the processes of bringing new products world-wide. This paper examines the relationship between manufacturing strategy of those original equipment manufacturers (OEM) suppliers and network innovation agility. No single best strategy can fit all OEM suppliers. They can choose either to be dedicated OEM service providers or to sell their own-brand products. Either strategy can be effective in terms of innovation agility. However, once the OEM manufacturing strategy has been chosen, a manufacturer should adopt an appropriate way to manage its product innovation process. A dedicated OEM supplier should emphasize manufacturing flexibility and pursue a product modularity strategy to enhance network innovation agility, while cross-functional integration is the key for successful manufacturers with own-brand products. For both dedicated OEM suppliers and own-brand ones, market orientation is essential for network innovation agility. Managerial implications and future research directions are discussed.
SDGs
Type
journal article