The optimal business model of Taiwanese firms which both operate at OEM and OBM-explore the key decision factors

In the past, Taiwanese OEM firms manufactured umbrellas, bicycles for international companies. And now Taiwanese firms manufactured the electronic products like, computers. But as the profit of OEM get fewer and fewer, many Taiwanese firms recongnized the importance of creating their own brands. Some of Taiwanese firms did suucced, like ASUS and Acer. But more OEM firms experienced failures when they tried to create their own brands.
By observing Taiwanese OEM firms, in the beginning, they often use the profits of OEM to support their own brands. But when their own brands get stronger, this threats their customers, the international companies, and it’s hard for Taiwanese firms to operate both in OEM and their own brands at the same time.
In this situation, many Taiwanese firms choose to separate their own brands from their OEM activities. But it dosen’t mean that all the OEM firms can’t operate their own brands in an organization. Take Logitech and Giant for example, they successfully combined two different kinds of operation models to increase their profits.
So we are curious about that:”What kinds of decision factors can determine an organization to separate its own brand from OEM activities or not? ”Through interview with experts and literature review, we decided three dimensions: resource shared ability dimension, market and industry dimension, and product specific dimension to determine an optimal organizational operation model.