| In emerging market countries, the best path for enterprises to grow and upgrade is that OEMto start, then ODM, final transition to OBM. Meanwhile, the parallel process is the introductionof technology, digestion and absorption of innovation, and the independent innovation.Innovation plays a very important role in the path to flourish.This paper chooses from two aspects including the competitive or cooperative relationshipbetween the OEM/ODM’s and the cooperative relationship between the Subcontractor and theOEM/ODM to study the OEM/ODM’s innovation performance and profit growth. In the caseconsidered knowledge spillovers and absorptive capacity, this paper builds game models underdifferent circumstances to analyze the problem, and the result shows that innovation performancefrom the innovation input, knowledge spillover absorption or cooperation on R&D plays animportant role in profit growth of the OEM/ODMs, but it behaves differently at different stages.On the OEM/ODM relationship, the OEM/ODM and subcontractor behave more cooperative,incentive exists for mutual knowledge spillover of both sides, knowledge absorptive capacity iscritical for the OEM/ODM’s innovation performance. But, when the OEM/ODM has equalbargaining power compared with the subcontractor, the OEM/ODM’s profit obtained from thefoundry relationship may exceed subcontractor, which may in turn inhibit the subcontractor’sknowledge spillover willingness and the stability of the OEM/ODM relationship. In addition,study from the competitive or cooperative relationship between the OEM/ODMs shows that therelationship behaves more competitive, the OEM/ODM’s profit is strongly related withtechnology gap, the OEM/ODM has strong incentives for innovation investment, becauseinnovation achievements not only increase its own profits, but also makes the competitors profitdecreased, which in turn consolidate and improve the OEM/ODM’s status in the industry. |
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