Research On The Upgrading Of China 's Manufacturing Industry Under Modular Production Network

In the 1980s, the international manufacturing industry was undergoing a profound structural change. With the continuous innovation and rapid development of information technology which represented by electronics, communications and computer, modular technique has replaced pipeline technique gradually as the new manufacturing industry’s leading technology. Modular design and production methods are widely used in enterprise management, industrial organization structure, etc. They have shaken the technology base of hierarchical organization fundamentally. In the major manufacturing industries of western developed countries, modularization of industrial organization and specialization of regional industries has become the important development trend in industry. Modular production network has begun to rise as a new type of industrial organization mode in international manufacturing field. The formation of modular production network has accelerated the adjustment of division of labor situation in international manufacturing, led to the rapid development of manufacturing in a large number of NICs and regions and the developing countries. Only through assembly processing and producing low knowledge intensive modules, the developing countries can access to the production chain of complex product. However, this does not mean that developing countries could realize the upgrading process autonomously which is from low value-added, weak technical capability low end of the links to the high value-added, strong technical capability high end of the links as long as they embedded modular production network.As is known to all, manufacturing is the most important economic foundation of an industrialized country. In 2008, the global economic crisis triggered by the U.S. Sub-prime mortgage crisis made many developed countries which are post-industrialized countries to rediscover the importance of manufacturing industry to their sustainable economic development. These countries formulated a series of "re-industrialization" national strategies in order to improve the international competitiveness of domestic manufacturing industry. For instance, the U.S. government launched the "Advanced Manufacturing Partnership" in June 2011, aiming to recapture the leadership position in global manufacturing. Meanwhile, the German government launched the "Industry 4.0" strategy in April 2013 in order to consolidate its manufacturing competitiveness. In May 2015, Chinese state council also has issued " Made in China 2025", known as Chinese version of" Industry 4.0", aimed to promote Chinese manufacturing reform and improvement of comprehensive strength. Although Chinese manufacturing industry ranked the first place in the world on the production scale and total amount at present, it was large but not strong. China is facing the pressure of resources and environment and rapidly rises on labor costs. Chinese government proposed the three decade "three steps" strategy in the construction of "manufacturing power". The core of it is to accelerate the transform and upgrading of Chinese manufacturing and improvement of quality and efficiency, achieving transform from large manufacturing to great power manufacturing. Therefore, how to promote the economic transformation and manufacturing upgrading will become one of major issues that our government and scholars eager to solve.Currently, academic circles have not drawn consensus research conclusions and opinions on modular production network impact on developing countries manufacturing upgrade issues. Whether the formation of modular production network will affect manufacturing upgrading in developing countries? If it has an impact, the impact is to promote or hinder the manufacturing upgrade? Or both of it? What is the mechanism of the manufacturing upgrading under the background of modular production network? What are the embedded degree and the upgrade status quo of Chinese manufacturing industry in the modular production network? How to empirically study on the influence factors and extents to Chinese manufacturing upgrade in modular production network? What kind of effective upgrading paths could Chinese manufacturing industry take in modular production network? These problems are the core issue of this paper to solve.This paper is divided into seven chapters. Its structure arrangement is as following:The first chapter is introduction. This chapter briefly introduces the presenting problem, research purpose and realistic significance; clearly define the core concepts such as modular production network, manufacturing industry upgrading, etc. It also defines the applicable scope of manufacturing upgrade in modular production network. Finally, it puts forward the research methods, content arrangement, technical route and possible innovative ideas presented in this paper.The second chapter is the literature review on developing country’s manufacturing industry upgrade in modular production network. It systemically pectinates the domestic and foreign research findings on modular production network, developing country’s manufacturing upgrade, and modular production network impact on developing country’s manufacturing upgrade. Then it gives a brief review and the area to be further improved.The third chapter is the theoretical study on manufacturing upgrade of developing countries under the background of modular production network. Firstly, the general analysis framework of developing country’s manufacturing upgrade mechanism in modular production network has been constructed in this chapter. It explains how the four basic components of modular production network can be transformed into upgrading impetus of manufacturing industry upgrade. Then the paper discusses systematically the four types of manufacturing upgrade mechanism by the theoretical studies, that is the division of labor deepening mechanism, innovation operational mechanism, market competition mechanism and social capital operational mechanism.The fourth chapter is the case study of Chinese manufacturing upgrade under the background of modular production network. At first, it overall studys on the upgrade status quo of Chinese manufacturing industry, investigate the embedded extent of Chinese manufacturing into global production network, the degree of industry modularization and the correlation relationship of both factors during the period of from 2005 to 2013. Then this paper selects the Chinese mobile phone industry as the typical modular industry to analyze the embedded extent to modular production network and the present situation of industry upgrading.The fifth chapter is the empirical study on the influence factors and their effect degree of Chinese manufacturing industry upgrade in modular production network. Firstly, it puts forward the influence factors model of manufacturing upgrade performance in modular production network. Then through the questionnaire design and related data collection, the paper set up the structural equation model to empirical study the deepening of division of labor, innovation operation level, market competition condition and social capital accumulation of modular production network have actual impact on the Chinese manufacturing upgrade. Finally, considering the different industries have different modulation extent, this chapter also examines that the modular level of investigator’s organization plays moderating role in manufacturing industry upgrade.The sixth chapter researches the upgrade paths of Chinese manufacturing in modular production network. On the basis of the theoretical research, case study and empirical analysis, the paper puts forward effective upgrade paths for Chinese manufacturing industry from embedded timing, embedded role and embedded mode three aspects.The seventh chapter is summary arid outlook. This chapter summarizes the main points of the paper and major research conclusions at last. Then, the paper brings forward the related policy suggestions and implications from three angles of enterprise, industry and governmental. Finally, it points out the deficiency of this study and research outlook in the future.