Author: Lai, Pok Lai
Title: An exploratory study of the critical capabilities of original equipment manufacturers in the printing industry in China
Advisors: Cheng, Edwin (LMS)
Choy, Petrus (LMS)
Degree: D.B.A.
Year: 2017
Subject: Hong Kong Polytechnic University -- Dissertations
Manufactures -- China
Management -- China
Department: Faculty of Business
Pages: xii, 250 pages : illustrations
Language: English
Abstract: China's original equipment manufacturing (OEM) industry has contributed to both the Chinese and global economies for the past 40 years following China's launch of the Open Door Policy in 1978. However, the competitive advantages of OEM in China such as low labour and operating costs have continued to decline over the last decade following the global economic crisis in 2008. The ongoing downturn in the global economy, together with factors such as the changing buying habits of customers, increasing demand from society, and shifting institutional contexts, have rendered OEM difficult to operate. Hence, it is necessary to identify solutions, through which the business and organizational performance of OEM can sustain. The aim of this study is to identify the critical capabilities that original equipment manufacturers (OEMs) should develop to improve their organizational performance. Few previous studies have conducted this type of capability analysis or examined how firm capabilities are related to organizational performance. Moreover, relatively little research has addressed the challenges faced by OEMs in the printing industry in China, which is the focus of the present study. On the basis of an extensive literature review, nine initial constructs containing 87 measurement indicators of capabilities and five initial constructs with 60 measurement indicators of organizational performance measures pertinent to OEMs in the printing industry in China were identified for further analysis. A survey questionnaire was designed for data collection and applied to conduct an organizational-level field study. Survey questionnaires were sent to 180 selected suppliers of the Leo Paper Group to collect data and 106 valid responses were received and analyzed by exploratory factor analysis to identify the potential critical capabilities and organizational performance measures pertinent to OEMs in the printing industry in China, and by multiple regression analysis to find their relationships.
Five critical capabilities, namely environmental compliance capability, learning capability, manufacturing capability, strategic capability, and supply chain capability, and five organizational performance measures, namely corporate social performance, financial performance, personnel performance, marketing performance, and operational performance, were identified. The five critical capabilities are statistically associated with the five organizational performance measures at different levels of significance. Manufacturing capability is the most prominent of the critical capabilities as it is significantly associated with all the five organizational performance measures. A case study of the Leo Paper Group was conducted to validate the findings by reviewing the measures taken to achieve superior organizational performance. Another listed company in Hong Kong, the Hung Hing Printing Group (SEHK: 450), was studied for benchmarking purposes. The research findings contribute to academic research by identifying the critical capabilities of OEMs in the printing industry in China, and to practice by ascertaining the relationships between the critical capabilities and different organizational performance measures, which provide guidelines to OEMs in China's printing industry on proper resource allocation to enhance their critical capabilities and competitive edges.
Rights: All rights reserved
Access: restricted access

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