|Leung, Lin-ho Chanel
|An exploratory study of creating and sustaining competitive advantage through organizational structure and process management analysis : a case study of a multi-national electronic firm in Hong Kong with cooperative venture in China
|Awarded by Multi-disciplinary Studies, HKPU
|Electronic industries -- China -- Hong Kong -- Case studies
Joint ventures -- China
Hong Kong Polytechnic University -- Dissertations
|vii, 85 leaves ; 30 cm
|Eltronic International is a multinational electronic corporation with its operating units spreading over 60 countries. Facing the rising production costs in Hong Kong, Eltronic HK moved its production base to Shenzhen Special Economic Zone by establishing a plant called "Alpha Co.". Eltronic HK still serves as a supporting centre in provision of technological and managerial experience. The firm's migration from Hong Kong to Southern China has proved to be one of the many examples of Hong Kong electronic firms competing for cost advantages from both regions. Manufacturing re-location requires regional integration. Although the low cost factors in Shenzhen are very attractive, Electronic HK nevertheless has to make a considerable initial investments in infrastructures and technical supports. More often than not, an unknown hidden cost will be incurred for handling local regulators or stakeholders. The case study of Eltronic HK puts forward a challenge to the "competitive advantage theory" which assumes efficiency of resources allocation being the only management objective. In the case study of Alpha Co., it is observed that internal alignment of an effective organizational structure and its associated process management with the external perceived environment is required to fill up the gap from the ideological competitive strategy to the final business performance. Some other important variables, such as relationship management with the local venture parties and stakeholders, operationalization of social network systems, are being identified based on the field work. In the final conclusion, management of cross-regional manufacturing, particularly in China, is a matter of relationship management. The further development of the proposed framework is to study the multiple relationships in the inter-organizational network by means of social network analysis. Besides, unit of analysis and competition dimensions should also be carefully defined in drawing up of the company strategies.
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