The Study On The Upgrading Of The OEM Company In Shandong Province In The East Asian Production Networks

After the reform and opening up, Chinese enterprises with the OEM model gradually participate in the global division of labor system. Shandong province OEM companies participate in the international division of labor, especially in the East Asian production networks, which makes a significant contribution to the development of economy of Shandong province. However, due to the OEM in the bottom of the value chain, its technical content and added value relatively are low; its weak position in the international competition is gradually emerging. So Shandong OEM companies need to move up the value chain the high-end development, to achieve the upgrading of enterprises. At present China, Japan and South Korea as the core members of the East Asian production networks are constructing the FTA, which will play an important role in promoting the regional economic development. And with the FTA negotiations of China and South Korea completed and the construction of FTA accelerating, the trend of integration will further strengthen in East Asia economic and trade. Shandong province plays an important geographical position in the FTA and now is actively building the local economic cooperation platform with Japan and South Korea, so that it can promote the cooperation and exchanges of the economic and trade with Japan and South Korea widely, and promote the development of regional integration. Therefore, Shandong province OEM companies should seize the opportunity that China, Japan and South Korea are constructing FTA, obtain the product knowledge of OEM customers especially Japanese and South Korea advanced enterprises through the East Asian production networks, and eventually realize the upgrading of enterprises. So this paper discusses the knowledge transfer and diffusion mechanism within the East Asian production networks, so as to study the upgrading mechanism of Shandong province OEM companies in the East Asian production networks.This paper consists of six chapters. The first chapter is the introduction part which mainly introduces the research background, significance, methods, innovations and shortcomings of this article. The second chapter combs the domestic and foreign literature from the East Asian production networks and the upgrading of the OEM Company. The third chapter defines the related concepts of the East Asian production networks and OEM Company, and analyzes the present situation of Shandong province OEM Companies. Although Shandong province OEM Companies occupy the important position in foreign trade, but there are still many problems such as low ring embedding, not high profit margins, low level of technology, scale enterprises and famous brands and so on. The fourth chapter analyzes not only the knowledge transfer model but also the path and influencing factors of the OEM Company transformation and upgrading in theory. The fifth chapter constructs supposition frame of empirical research from four aspects of OEM products, OEM Companies, OEM customers, OEM Companies and OEM customer relationship. The empirical results show that the properties of the knowledge of OEM products and the features of OEM customers have a significant negative impact on the degree of product knowledge acquisition; the features of OEM Companies features and the relationships of OEM Companies and OEM customers have a significant positive impact on the degree of product knowledge acquisition. The sixth chapter is the related policy suggestion. Based on the previous research, this chapter makes some suggestions to promote Shandong Province OEM Companies upgrade in East Asian production network.