Research On The Influence Of Technological Innovation Ability On The Transformation And Upgrade Of OEM Enterprises

Since the OEM(Original equipment Manufacturing)model arose in China in the 1990 s,many domestic enterprises rely on low-cost labor costs and rich raw material resources,obtain a steady stream of OEM orders,a lot of enterprises have begun to engage in OEM production.However,with the continuous changes in domestic and foreign market environment,China's rising labor costs,but also the introduction of a number of restrictions,more and more OEM sellers have chosen India,Vietnam and other lower labor costs and less restrictive areas as the production base for OEM orders,which makes the original market share that belongs to our country's OEM Enterprises to reduce rapidly,many enterprises are facing the development predicament because of the OEM order loss.In addition,because the OEM enterprises in the value chain are in the position of the lowest value-added,with low profit and limited appreciation space,it is not a long-term business development to always take OEM business as the main service.Therefore,the transformation and upgrading of OEM enterprises in China is imminent.On the basis of combing the relevant literatures about the transformation and upgrading of OEM enterprises,this paper studies the influence of technological innovation ability on the transformation and upgrade of OEM enterprises,and constructs the theoretical model of the influence of technological innovation ability on the transformation and upgrade of OEM enterprises with the theory of value chain theory and technology innovation ability.Based on the research achievements of Fu Jiaji and other scholars,this paper divides the components of technological innovation capability into five aspects,such as manufacturing ability,innovation resource input ability,research and development ability,marketing ability and innovation management ability according to the ability of OEM enterprise need to realize position change in value chain.And according to the OEM enterprise's own characteristic,this paper has carried on the further subdivision to five constituent elements.Among them,the production ability manifests for the production level and the technical consummation situation,the innovation resources input ability manifests for the innovation capital investment and the innovation talented person input,the research development ability manifests for the innovation technology operation and the innovation achievement output,the marketing ability manifests the customer demand perception degree,the product sale promotion strategy and the feedback arrangement The innovation management ability manifests in the innovation management decision-making,the innovation culture modeling and the Innovation Behavior management.The different forms of each constituent element of technological innovation have different influence on the successful realization of the transformation and upgrade of OEM enterprises.According to the theoretical model of construction,this paper uses case study method to select the Pao Chen International Group which is mainly engaged in shoemaking business and the Galanz Group which works on Home Appliance Manufacturing as the objects of case study to verify the theoretical model presented in this paper.Two enterprises are from different regions,engaged in different industries,with different scales,and with different paths to successfully achieve transformation and upgrading of OEM enterprises,with strong representativeness.Firstly,this paper analyzes the effect of the transformation and upgrade of two enterprises from the concrete manifestation of five elements of technological innovation ability.After summarizing the situation of two cases and comparing and analyzing two cases,the study found that there were some deficiencies in the previous theoretical model,and after considering the industry problems,the enterprise differences and other factors,It is considered that the feedback arrangement in the marketing ability and the innovation behavior management in the innovation management ability which are in the original theoretical model of this paper has no general influence on the transformation and upgrading of OEM enterprises,so the paper revises the theoretical model with these two factors eliminated.Finally,this paper concludes that the technological innovation ability plays an important role in promoting the transformation and upgrading of OEM enterprises,and the establishment of this model has some practical inspirations for the successful transformation and upgrading of OEM enterprises.