Resource linkages and capability development |
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Authors: | Chia-Wen Hsu [Author Vitae] Homin Chen [Author Vitae] Lichung Jen [Author Vitae] |
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Institution: | a Department of International Business, National Taiwan University, N0. 85, Sec. 4, Roosevelt Road, Taipei 106, Taiwan b Department of International Business, Yuan-Ze University, No. 135, Yuan-Tung Road, Chung-Li, Taoyuan 320, Taiwan |
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Abstract: | In this paper, we examine the different resource linkages sought by manufacturing firms through strategic alliance. We look closely at the impact of manufacturing activities on choice of resource linkage. Using a sample of Taiwanese firms, we found that product development ability and marketing distribution channels are the top priority resource linkages that Taiwanese manufacturing firms seek to establish. The authors also found it interesting that marketing know-how was not a resource commonly sought by Original Design and Manufacturing (ODM) firms, nor by Own-Brand Manufacturing (OBM) firms. Some implications are further discussed. Instead of outsourcing production to external suppliers, Taiwanese OBM firms remained committed to manufacturing as a core competence when they established their own brands overseas. |
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Keywords: | Resource linkages Strategic alliance Marketing distribution channels Product development ability Marketing know-how |
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