OEM, ODM, OBM
COURSE TITLE
Developing Knowledge-based International Businesses in
Emerging Economies (CMSE11111)
EXAMINATION NUMBER
B045292
TITLE OF THE PAPER
“Using the case of a company based in an emerging market, compare its development with the development patterns of domestically owned and foreign owned electronics firms in Asia, as described by
Mike Hobday. What are the reasons for any differences you can identify? What does your comparison imply about the firm’s prospects for the future?”
NAME OF TUTOR
Dr Rick Woodward
Semester 1 - 2013 - MSc International Business & Emerging Markets
1- Introduction
This essay is based on the work of Michael Hobday titled “East versus Southeast Asian
Innovation Systems: Comparing OEM- and TNC-led Growth in Electronics”. Hobday’s paper analyses the triggers of innovation in both regions, within the electronics industry.
He found that East Asian (EA) electronic industry developed mainly due to their domestic firms’ engagement in exports whereas Southeast Asian (SEA) companies developed primarily because of the Transnational Corporations (TNC) located in such countries. Electronics industry is highly relevant because during the 1980s and 1990s represented the biggest export group in Newly Industrialized Economies (NIEs)
(Hobday, 2000, p. 120). Regarding EA companies, what called Hobaday’s attention in his analysis is the way in which local firms, with limited experience in the electronics sector, developed so greatly and became global players.
To address the research topic, the author centred in understanding how firms in both regions evolved by comparing:
“(…) two of the chief institutional mechanisms for electronics export: the OEM
(original equipment manufacture) system prevalent in East Asia and the TNCled growth of Southeast Asia” (Hobday, 2000, p. 130 ).
The findings of his work are very important for companies in other NIEs and in other sectors apart from electronics. Therefore, the
Developing Knowledge-based International Businesses in
Emerging Economies (CMSE11111)
EXAMINATION NUMBER
B045292
TITLE OF THE PAPER
“Using the case of a company based in an emerging market, compare its development with the development patterns of domestically owned and foreign owned electronics firms in Asia, as described by
Mike Hobday. What are the reasons for any differences you can identify? What does your comparison imply about the firm’s prospects for the future?”
NAME OF TUTOR
Dr Rick Woodward
Semester 1 - 2013 - MSc International Business & Emerging Markets
1- Introduction
This essay is based on the work of Michael Hobday titled “East versus Southeast Asian
Innovation Systems: Comparing OEM- and TNC-led Growth in Electronics”. Hobday’s paper analyses the triggers of innovation in both regions, within the electronics industry.
He found that East Asian (EA) electronic industry developed mainly due to their domestic firms’ engagement in exports whereas Southeast Asian (SEA) companies developed primarily because of the Transnational Corporations (TNC) located in such countries. Electronics industry is highly relevant because during the 1980s and 1990s represented the biggest export group in Newly Industrialized Economies (NIEs)
(Hobday, 2000, p. 120). Regarding EA companies, what called Hobaday’s attention in his analysis is the way in which local firms, with limited experience in the electronics sector, developed so greatly and became global players.
To address the research topic, the author centred in understanding how firms in both regions evolved by comparing:
“(…) two of the chief institutional mechanisms for electronics export: the OEM
(original equipment manufacture) system prevalent in East Asia and the TNCled growth of Southeast Asia” (Hobday, 2000, p. 130 ).
The findings of his work are very important for companies in other NIEs and in other sectors apart from electronics. Therefore, the
Cited: 02 November 2013].