| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 1027762 | Industrial Marketing Management | 2011 | 9 Pages |
Original equipment manufacturers (OEMs) can reduce labor costs, free up capital investment and enhance firm's agility by full outsourcing of product manufacturing. OEMs can then focus on the most valuable processes, e.g. R&D and marketing. However, contract manufacturers (CMs) may decide to foster their own brand and forge their own relationships with retailers or distribution channels. The conflicts of interest between OEMs and CMs can be reduced by implementing a mixed channel strategy. Label licensing, the most essential component in the implementation, enhances the marketing capability of a CM and allows it to move up the value chain. In this research, a case study involving a supply chain network in the optical storage media industry is used to develop a conceptual model to explain how a mixed channel strategy and superior network agility enhance firm performance. This study argues that information system integration influences firm performance through network agility, and that the mixed channel strategy boosts financial performance. Moreover, the result proposes that network agility is associated with a moderating effect on the relationship between the mixed channel strategy and financial performance.
Research Highlights► Network agility is considered as a trigger to enhance firm performance. ► Information system integration influences firm performance through network agility. ► Mixed channel strategy increases performance if channel conflicts are handled well. ► Superior network agility will increase a level of the mixed channel strategy.
