A study of outsourcing relationship in strategic partnership for production in China
by Louis C.Y. Lo, Walter W.C. Chung
International Journal of Logistics Systems and Management (IJLSM), Vol. 3, No. 3, 2007

Abstract: When Western companies move their manufacturing base to China, they become new entrants to the world factory. To be successful in managing the production network operation in China, one should understand that companies in China view 'Guanxi' relationships as the solution to almost all problems. The companies of the West, on the other hand, consider systems-related changes as the key to all the problems. These two approaches should be embraced in dealing with conflicts to achieve synergy and bring out the competitive edge needed to support manufacturing in China. The Western companies need a roadmap to guide what they should or should not be doing in China. The authors have consolidated their experiences into a framework for managing business process outsourcing in China. The companies of the West should find the proposed approach useful in establishing a competitive edge for manufacturing in China.

Online publication date: Tue, 03-Apr-2007

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