Upgrading from OEM to OBM through Reverse Acquisition in China’s Emerging Economy: The Case of Lacquer Craft Mfg

Yunshi Mao, Tian Li, Yangchun Liu

PDF(665 KB)
PDF(665 KB)
Front. Bus. Res. China ›› 2015, Vol. 9 ›› Issue (1) : 64-90. DOI: 10.3868/s070-004-015-0004-9
research-article

Upgrading from OEM to OBM through Reverse Acquisition in China’s Emerging Economy: The Case of Lacquer Craft Mfg

Author information +
History +

Abstract

In this paper, we review how original equipment manufacturing (OEM) firms break the “lock in the global value chains” (GVCs) and upgrade to original/own brand manufacturing (OBM) through accelerated internationalization. We focus on investigating how Lacquer Craft Mfg (later referred to as Lacquer Craft), an OEM firm in southern China successfully upgraded to OBM through reverse acquisitions. By proactively utilizing the resources (including the mindset or perspectives formulated) generated from practicing OEM, Lacquer Craft developed the needed capabilities to build its own brand in an international setting. Lacquer Craft’s successful experiences show that in a globalized economy, the ability to identify and exploit opportunities to link with established players, and the ability to search, acquire, and integrate strategic assets from the developed world rather than replicating the entire previous technological trajectory greatly facilitate the OEM firm in climbing up the value-added ladder and upgrading to OBM. This is a more aggressive upgrading approach. Its experiences also reveal that a firm’s product and technological upgrading strategies are closely interwoven with its internationalization strategy.

Keywords

OEM / OBM / GVCs / reverse acquisitions / strategic assets / upgrading

Cite this article

Download citation ▾
Yunshi Mao, Tian Li, Yangchun Liu. Upgrading from OEM to OBM through Reverse Acquisition in China’s Emerging Economy: The Case of Lacquer Craft Mfg. Front. Bus. Res. China, 2015, 9(1): 64‒90 https://doi.org/10.3868/s070-004-015-0004-9

RIGHTS & PERMISSIONS

2014 Higher Education Press and Brill
PDF(665 KB)

Accesses

Citations

Detail

Sections
Recommended

/