Study On The Transition Path Of Traditional Manufacturing Industry From Production-oriented Manufacturing To Service-oriented Manufacturing

With the increasing development of economic globalization and information technology, the base of manufacturing industry in developed countries transforms from production to service since the 1970 s, and we try to develop service-oriented manufacturing instead of production-oriented manufacturing. Global economy gradually transforms from product economy to service economy. Compared with manufacturing level of developed countries, there is a big gap. In addition, Shandong Province is a traditional manufacturing province, but the level of service-oriented manufacturing development and output value of service industry is also relatively low.So it is important to explore transition path from traditional product-oriented manufacturing to service-oriented manufacturing, and try to change the way of economic development to become strong economic provinces.This paper summarizes the previous studies on transition path of traditional manufacturing industry from production-oriented manufacturing to service-oriented manufacturing. We make detailed analysis of transition path about Shandong province.Firstly, we analyze the development situation and facing problems, and make conclusions that we must try to develop service-oriented manufacturing instead of production-oriented manufacturing. We introduce characteristics of service-oriented manufacturing from some aspects. Then we define the concept of service-oriented manufacturing by using economic and management knowledge, and we analyze the characteristics of value creation, organizational structure and modes of supply. We study the value chain, supply chain, the form of production organization,organizational structure and its operational mechanism of service-oriented manufacturing enterprise. We propose the transition path of traditional production-oriented manufacturing from the value chain, organizational structure and mode of production, service innovation. Then we take Shandong Province as an example to describe the path of transformation. We select Haier Group as case analysis to clarify the specific path of transformation, and use the method of case analysis to analyze transformation path of typical enterprise from the microscopicpoint of view. Finally, we select four factors which include the level of economic development, technological progress, the quality of workers and the level of market,to analyze the impact on traditional manufacturing. On the basis of theoretical analysis, we make use of the data of 17 cities of Shandong province to carry out empirical analysis. The empirical results show that the level of economic development,technological progress, labor quality are positively correlated with the degree of service-oriented manufacturing. Technical level is the most important factor affecting the transition path. The level of market is not significant to transition path of traditional manufacturing industry. Based on results of empirical analysis,transformation path and influential factors, we make suggestions to promote the development of service-oriented manufacturing.