Hostname: page-component-78c5997874-dh8gc Total loading time: 0 Render date: 2024-11-13T07:45:50.711Z Has data issue: false hasContentIssue false
  • English
  • Français

From Contract Manufacturing to Own Brand Management: The Role of Learning and Cultural Heritage Identity

Published online by Cambridge University Press:  02 February 2015

Ching Horng  and
Wayne Chen
Ching Horng
Affiliation:
Chung Cheng University
Wayne Chen
Affiliation:
Jabil Green Point, Taiwan
Get access Rights & Permissions [Opens in a new window]

Abstract

While the contract manufacturers in Taiwan take orders from their brand-name buyers, some of them have started to move up to own brand management (OBM). This study examined three factors contributing to the performance of OBM: learning from the key buyer, learning from the key subsidiary and the focal firm's own cultural heritage identity. We found learning from the key subsidiary and one's own cultural heritage identity related positively to OBM performance. Further, there is a counterintuitive negative moderating effect of identity on the relationship between learning from the key buyer and OBM performance. Although preliminary, our results suggest that partners with asymmetric power relationships are prime candidates for future studies to explore the role of identity and pride.

Keywords

buyer learningcultural heritage identityown brand managementsubsidiary learning自创品牌文化传统认同感客户学习子公司学习
Type
Articles
Information
Management and Organization Review , Volume 4 , Issue 1 , March 2008 , pp. 109 - 133
Copyright
Copyright © International Association for Chinese Management Research 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aaker, D. A. 1991. Managing brand equity: Capitalizing on the value of a brand name. New York: The Free Press.Google Scholar
Aiken, L. S., & West, S. G. 1991. Multiple regression: Testing and interpreting interactions, Newbury Park, Calif.: Sage.Google Scholar
Albert, S., & Whetten, D. A. 1985. Organizational identity. In Cummings, L. L. & Staw, B. M. (Eds.), Research in organizational behavior, Vol. 7: 263–295. Greenwich, Conn.: JAI Press.Google Scholar
Almeida, P., & Phene, A. 2004. Subsidiaries and knowledge creation: The influence of the MNC and host country on innovation. Strategic Management Journal, 25: 847–864.CrossRefGoogle Scholar
Anand, J., & Singh, H. 1997. Asset redeployment, acquisitions and corporate strategy in declining industries. Strategic Management Journal, 18 (Summer Special Issue): 99–118.Google Scholar
Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17: 99–120.CrossRefGoogle Scholar
Bartlett, C. A., & Ghoshal, S. 1989. Managing across borders: The transnational solution. Boston, Mass.: Harvard Business School Press.Google Scholar
Baum, J. A., Li, S. X., & Usher, J. M. 2000. Making the next move: How experiential and vicarious learning shape the locations of Chains’ acquisitions. Administrative Science Quarterly, 45: 766–801.Google Scholar
Benner, M. J., & Tushman, M. 2002. Process management and technological innovation: A longitudinal study of the photography and paint industries. Administrative Science Quarterly, 47: 676–706.Google Scholar
Blau, P. 1955. The dynamics of bureaucracy: A study of interpersonal relations in two government agencies. Chicago, Ill.: University of Chicago Press.Google Scholar
Burgelman, R. A., & Grove, A. S. 2007. Let chaos reign, then rein in chaos-repeatedly: Managing strategic dynamics for corporate longevity. Strategic Management Journal, 28: 965–979.Google Scholar
Burrell, G., & Morgan, G. 1979. Sociological paradigms and organizational analysis: Elements of the sociology of corporate life. London: Heinemann Educational Books.Google Scholar
Cohen, W., & Levinthal, D. 1990. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35: 128–152.Google Scholar
Common Wealth. 2002. Special issue on 1000 Taiwanese corporations. Taipei: Common Wealth.Google Scholar
Common Wealth. 2006. Special issue on 1000 Taiwanese corporations. Taipei: Common Wealth.Google Scholar
Danneels, E. 2002. The dynamics of product innovation and firm competences. Strategic Management Journal, 23: 1095–1121.Google Scholar
Dhanaraj, C., Lyles, M. A., Steensma, H. K., & Tihanyi, L. 2004. Managing tacit and explicit knowledge transfer in IJVs: The role of relational embeddedness and the impact on performance. Journal of International Business Studies, 35: 428–442.CrossRefGoogle Scholar
Dukerich, J. M., Golden, B. R., & Shortell, S. M. 2002. Beauty is in the eye of the beholder: The impact of organizational identification, identity, and image on the cooperative behaviors of physicians. Administrative Science Quarterly, 47: 507–533.Google Scholar
Dyer, J. H. 1996. Specialized supplier networks as a source of competitive advantage: Evidence from the auto industry. Strategic Management Journal, 17: 271–291.Google Scholar
Dyer, J. H., & Hatch, N. W. 2006. Relation-specific capabilities and barrier to knowledge transfers: Creating advantage through network relationships. Strategic Management Journal, 27: 701–719.CrossRefGoogle Scholar
Dyer, J. H. & Nobeoka, K. 2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal, 21: 345–367.Google Scholar
Dyer, J. H., & Singh, H. 1998. The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23: 660–679.Google Scholar
Fallows, J. 2007. China makes, the world takes. The Atlantic Monthly, July/August: 48–72.Google Scholar
Fang, G.J. 2002. The sky is the limit: My years at dell. Taipei: Common Wealth. (In Chinese.)Google Scholar
Farh, J. L., Earley, P. C., & Lin, S. C. 1997. Impetus for action: A cultural analysis of justices and organizational citizenship behavior in Chinese society. Administrative Science Quarterly, 42: 421–444.Google Scholar
Feinberg, S. E., & Gupta, A. K. 2004. Knowledge spillovers and the assignment of R&D responsibilities to foreign subsidiaries. Strategic Management Journal, 25: 823–845.CrossRefGoogle Scholar
Forbes, H. D. 1997. Ethnic conflict: Commerce, culture, and the contact hypothesis. New Haven, Conn.: Yale University Press.Google Scholar
Geyskens, I., Steenkamp, E. M., & Kumar, N. 2006. Make, buy, or ally: A transaction cost theory meta-analysis. Academy of Management Journal, 49: 519–543.Google Scholar
Ghoshal, S., & Moran, P. 1996. Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21: 13–47.Google Scholar
Gulati, R., & Sytch, M. 2007. Dependence asymmetry and joint dependence in interorganizational relationships: Effects of embeddedness on a manufacturer's performance in procurement relationships. Administrative Science Quarterly, 52: 32–69.Google Scholar
Gupta, A. K., & Govindarajan, V. 2000. Knowledge flows within multinational corporations. Strategic Management Journal, 21: 473–496.Google Scholar
Gupta, A. K., Smith, K. G., & Shalley, C. E. 2006. The interplay between exploration and exploitation. Academy of Management Journal, 49: 693–706.Google Scholar
Guthrie, D. 2005. Organizational learning and productivity: State structure and foreign investment in the rise of the Chinese corporation. Management and Organization Review, 1: 165–195.Google Scholar
Hamel, G. 1991. Competition for competence and interpartner learning within international strategic alliances. Strategic Management Journal, 12: 83–103.Google Scholar
Hansen, M. T. 1999. The search-transfer problem: The role of weak ties in sharing knowledge across organization subunits. Administrative Science Quarterly, 44: 82–111.CrossRefGoogle Scholar
Hiller, N. J., & Hambrick, D. C. 2005. Conceptualizing executive hubris: The role of (hyper-) core self-evaluations in strategic decision-making. Strategic Management Journal, 26: 297–319.Google Scholar
Hjerm, M. 1998. National identities, national pride and xenophobia: A comparison of four Western countries. Acta Sociologica, 41: 335–347.Google Scholar
Hofstede, G., Van Deusen, C. A., Muller, C. B., Charles, T. A., & the Business Goals Network. 2002. What goals do business leaders pursue? A study in fifteen countries. Journal of International Business Studies, 33: 785–803.Google Scholar
Horng, C. 2004. Mission, buyer network, and supplier network: Factors influencing the choice of OBM strategy in the computer and electronics industries in Taiwan. Taiwan Journal of Management, 21: 451–476. (In Chinese.)Google Scholar
Horng, C. 2006. An empirical study of knowledge transfer and knowledge reciprocation in Taiwanese manufacturing industry. Asia Pacific Management Review, 11: 29–41.Google Scholar
Ingram, P., & Baum, J. 1997. Opportunity and constraint: Organizations’ learning from the operating and competitive experience of industries. Strategic Management Journal, 18: 75–98.Google Scholar
Kogut, B., & Zander, U. 1993. Knowledge of the firm and the evolutionary theory of the multinational corporation. Journal of International Business Studies, 24: 625–646.Google Scholar
Krishnan, R., Martin, X., & Noorderhaven, N. G. 2006. When does trust matter to alliance performance? Academy of Management Journal, 49: 894–917.CrossRefGoogle Scholar
Lee, L. D. 2007. Contract manufacturers cheer on Dell's three-part turnaround strategy. Economic Daily, May 26: Section A3. (In Chinese.)Google Scholar
Leonard-Barton, D. 1992. Core capabilities and core rigidities: A paradox in managing new product development. Strategic Management Journal, 13 (Summer Special Issue): 111–125.Google Scholar
Lin, J. M. 2006. Acer remains firmly the number one NB brand in Europe. Economic Daily, August 8, Section C4. (In Chinese.)Google Scholar
Lin, J. M. 2007. Asus starts its subdivision of contract manufacturing and own brand management early. Economic Daily, July 6, Section A3. (In Chinese.)Google Scholar
Liu, S. B. 2003. Master Kung. Taipei: JDIG. (In Chinese.)Google Scholar
Luo, Y. 2001. Antecedents and consequences of personal attachment in cross-cultural cooperative ventures. Administrative Science Quarterly, 46: 177–201.Google Scholar
Luo, Y. 2006. Opportunism in inter-firm exchanges in emerging markets. Management and Organization Review, 2: 121–147.Google Scholar
March, J., & Simon, H. A. 1958. Organizations. New York: Wiley.Google Scholar
March, J. G. 1991. Exploration and exploitation in organizational learning. Organization Science, 2:71–87.Google Scholar
Meyer, A. D. 1982. Adapting to environmental jolts. Administrative Science Quarterly, 27: 515–537.Google Scholar
Miller, D. J., Fern, M. J., & Cardinal, L. B. 2007. The use of knowledge for technological innovation within diversified firms. Academy of Management Journal, 50: 308–326.Google Scholar
Morrison, E. W., & Robinson, S. L. 1997. When employees feel betrayed: A model of how psychological contract violation develops. Academy of Management Review, 22:226–256.Google Scholar
Neter, J., Wasserman, W., & Kutner, M. H. 1990. Applied linear statistical models. Homewood, Ill.: Irwin.Google Scholar
Oxley, J. E., & Sampson, R. C. 2004. The scope and governance of international R&D alliances. Strategic Management Journal, 25: 723–749.Google Scholar
Perlmutter, H. V. 1969. The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4: 4–9.Google Scholar
Poppo, L., & Zenger, T. 2002. Do formal contracts and relational governance function as substitutes or complements? Strategic Management Journal, 23: 707–725.Google Scholar
Puranam, P., & Srikanth, K. 2007. What they know vs. what they do: How acquirers leverage technology acquisitions. Strategic Management Journal, 28: 805–825.CrossRefGoogle Scholar
Ravasi, D., & Schultz, M. 2006. Responding to organizational identity threats: Exploring the role of organizational culture. Academy of Management Journal, 49: 433–458.Google Scholar
Robinson, S. L. 1996. Trust and breach of the psychological contract. Administrative Science Quarterly, 41: 574–599.Google Scholar
Rousseau, D. M. 1989. Psychological and implied contracts in organizations. Employee Responsibilities and Rights Journal, 2: 121–139.Google Scholar
Schroeder, R. G., Bates, K. A., & Junttila, M. A. 2002. A resource-based view of manufacturing strategy and the relationship to manufacturing performance. Strategic Management Journal, 23: 105–117.Google Scholar
Shih, J. R. 2004. Acer's change of the century: Fading out manufacturing, fading in branding. Taipei: Common Wealth. (In Chinese.)Google Scholar
Shown, Y. S. 2006. Hon Hai steps into the movie industry. Common Wealth, November 8: 40. (In Chinese.)Google Scholar
Simonin, B. L. 2004. An empirical investigation of the process of knowledge transfer in international strategic alliances. Journal of International Business Studies, 35: 407–427.Google Scholar
Smircich, L. 1983. Concepts of culture and organizational analysis. Administrative Science Quarterly, 28: 339–358.Google Scholar
Smith, T. W., & Kim, S. 2006. National pride in comparative perspective: 1995/96 and 2003/04. International Journal of Public Opinion Research, 18: 127–136.Google Scholar
Subramani, M. R., & Venkatraman, N. 2003. Safeguarding investments in asymmetric interorganizational relationships: Theory and evidence. Academy of Management Journal, 46: 46–62.Google Scholar
Tang, T. L. P., Sutarso, T., Akande, A., Allen, M. W., Alzubaidi, A. S., Ansari, M. A., Arias-Galicia, F., Borg, M. G., Canova, L., Charles-Pauvers, B., Cheng, B. S., Chiu, R. K., Du, L., Garber, I., De La Torre, C. G., Higgs, R. C., Ibrahim, A. H. S., Jen, C. K., Kazem, A. M., Kim, K., Lim, V. K. G., Luna-Arocas, R., Malovics, E., Manganelli, A. M., Moreira, A. S., Nnedum, A. U. O., Osagie, J. E., Osman-Gani, A. M., Pereira, F. C., Pholsward, R., Pitariu, H. D., Polic, M., Sardzoska, E., Skobic, P., Stembridge, A. R., Tang, T. L. N., Teo, T. S. H., Tombolani, M., Trontelj, M., Urbain, C., & Vlerick, P. 2006. The love of money and pay level satisfaction: Measurement and functional equivalence in 29 geopolitical entities around the world. Management and Organization Review, 2: 423–452.Google Scholar
Tsui, A. 2006. Contextualization in Chinese management research. Management and Organization Review, 2: 1–13.Google Scholar
Tsui, A. S. 2004. Contributing to global management knowledge: A case for high quality indigenous research. Asia Pacific Journal of Management, 21: 491–513.Google Scholar
Williamson, O. 1985. The economic institutions of capitalism: firms, markets, relational contrasting. New York: Free Press.Google Scholar
Wu, J. B., Horn, P. W., Tetrick, L. E., Shore, L. M., Jia, L., Li, C., & Song, L. J. 2006. The norm of reciprocity: Scale development and validation in the Chinese context. Management and Organization Review, 2: 377–402.Google Scholar
Xiao, Z., & Bjorkman, I. 2006. High commitment work systems in Chinese organizations: A preliminary measure. Management and Organization Review, 2: 403–422.Google Scholar
Xu, G. 2001. Anti-Western nationalism in China, 1989-99. World Affairs, 163: 151–162.Google Scholar
Zhou, N., & Belk, R. W. 2004. Chinese consumer readings of global and local advertising appeals. Journal of Advertising, 33: 63–76.Google Scholar

A correction has been issued for this article:

Erratum