Study Of The Contract Manufacture Model Change Between FX And DE

Nowadays, with high frequency of scientific & technical innovation and high pressure of price competition, computer enterprises not only seek innovation on products and technology, but also adjust construction of company organization in accordance to price competition. This article describes the manufacturing, researching and developing oriented electrics industries'prosperity and decline of life cycle and cooperation model change which bring value shifting between contract manufacturer and branded manufacturer. In near 10 years cooperation history with DE and FX, also generated 4 stages of contract manufacture: Original Equipment Manufacturing (OEM),Original Design Manufacturing (ODM),Joint Design Manufacturing(JDM),Innovation Design Manufacturing( IDM). By different stages of contract manufacture, FX studies added value fully from DE on value activities. And even integrate upstream and downstream of supply chain gradually. And then changes from low value added contract manufacturer into high value added, innovative, researching & developing enterprise.By exploring a typical case of FX and DE in the computer industry, this study found that the boundary between these two firms evolved in four phases. It's clearly that FX and DE continuously change their business models and interactive relationship in every phase. However, the academic understanding of this issue is still a puzzle. Previous studies have imported transaction cost theory and competitive advantage to interpret the issue of firm boundary but failed to catch the evolutionary aspect of boundary shift. We proposed a synthesis multi-discipline perspective that integrates game theory and independence/ dependence capability to tackle theoretical of evolutionary boundary shift. This study would contribute to draw a tentative theoretical foundation to general theory of dynamic collaboration of vertical dis-integrated partner in a supply chain.