The ODM model and co-evolution in the global network PC industry : evidence from Taiwan

You Ren, Daniel YANG, Tunghai University, Taichung, Taiwan
Yun Chung CHEN, Hong Kong Baptist University

Copyright © 2013 SciRes.

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Abstract

This paper aims to explore the evolutionary dynamics of the ODM model in the global notebook PC industry. We found that the “modular design” process of notebook products requires plenty of technical interaction and tacit knowledge exchanges among branding companies, key component suppliers and ODMs. Taiwanese ODMs serve as important sources of information and knowledge for specifications formulation through their system integration and technological development abilities. With increasing complexity and shorter design life-spans, the mutual dependency among the lead firms and ODMs increases, leading to the regional agglomeration in Taiwan and China.