Conflicting cultures between original equipment manufacturing and original brand manufacturing management: Taiwan's real obstacles to upgrading?
by Vincent Shie, Craig Meer
International Journal of Business and Systems Research (IJBSR), Vol. 4, No. 1, 2010

Abstract: Original equipment manufacturing (OEM) and original brand manufacturing (OBM) are two operations in the information technology industry. Although Taiwan is the global OEM hub, its profit margins are shrinking. Adding an OBM strategy is a possible solution, but conflicts between OEM and OBM cultures may arise. Thus, it is advised that the separation of the two conflicting modes is the answer. This study challenges such an assertion from a systems perspective. We investigate the real obstacles at three, i.e. corporate, sectoral and global levels, and find that the functional separation in itself can only provide a partial reason.

Online publication date: Thu, 03-Dec-2009

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