The ODM Model and Co-Evolution in the Global Notebook PC Industry: Evidence from Taiwan

Daniel You-Ren Yang¹, Yun-Chung Chen²

¹Department of Sociology, Tunghai University, Taichung.
²Department of Sociology, Hong Kong Baptist University, Hong Kong, China.

DOI: 10.4236/aasoci.2013.31009                

Abstract

This paper aims to explore the evolutionary dynamics of the ODM model in the global notebook PC industry. We found that the “modular design” process of notebook products requires plenty of technical interaction and tacit knowledge exchanges among branding companies, key component suppliers and ODMs. Taiwanese ODMs serve as important sources of information and knowledge for specifications formulation through their system integration and technological development abilities. With increasing complexity and shorter design life-spans, the mutual dependency among the lead firms and ODMs increases, leading to the regional agglomeration in Taiwan and China.

Keywords

Subcontract Manufacturing; Modularity; Innovation; Global Production Networks; Value Chain Governance; Latecomer’s Upgrading

Conflicts of Interest

The authors declare no conflicts of interest.

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