Capabilities of Industrial Outsourcing of Electronics through Contract Manufacturing in China Based on Cluster Model
Keywords:
Business cluster, cluster model, contract manufacturing, industrial outsourcing, consumer electronics, China.Abstract
The article examines the key aspects and advantages of the cluster model in the context of enterprises focused on manufacturing and design in the field of consumer electronics in China. The main focus is on the economic efficiency and innovative potential provided by the cluster model to enterprises engaged in contract manufacturing. It is highlighted how the geographical concentration of production capacities and close cooperation between companies within clusters contributes to process optimization, cost reduction and strengthening of innovation processes. Key results: 1) the literature review suggests that the problems of outsourcing practice have attracted a lot of attention from the academic community, but consumer electronics research is rare; 2) a review of the best practices of manufacturing and design-oriented enterprises in China shows that for enterprises focused on the production of original equipment the key practices are large-scale production, flexibility in production, quality control and supply chains, and for enterprises focused on the production of design — innovative developments, full production cycle, partnership with customers and quick response to market trends; at the same time, these practices can be used simultaneously by both types of enterprises; 3) the cluster model in China is a powerful tool for stimulating economic growth, developing innovations and strengthening the competitive advantages of companies, as it provides an integrated approach to the development of industries and regions, contributing to the creation of a favorable business environment and accelerating economic development; 4) a review of key Chinese clusters focused on manufacturing and design in the field of consumer electronics (Shanghai, Beijing, Shenzhen, Zhejiang clusters) showed that these structures play a critical role in accelerating innovation and industrial development in this sector. Their further research and adaptation can play an important role in developing cluster model in Russia as well as in strengthening technological independence.
References
Герцик Ю.Г. Анализ опыта России и Китая в реализации кластерной политики и совместных инновационных проектов // В центре экономики. 2020. № 3. С. 60–71.
Заклязьминская Е.О. Научно-технический потенциал Китая в условиях технологических санкций США // Вестник российской академии наук. 2022. Т. 92. № 9. С. 885–892. DOI: 10.31857/S0869587322090122
Карачев И.А., Рыбакова В.С. Специальные экономические зоны и кластеры как движущая сила национальной экономики: опыт Китая и России // Актуальные проблемы развития отраслевых рынков: национальный и региональный уровень: сборник статей V Международной научно-практической конференции. Воронеж: Издательско-полиграфический центр «Научная книга», 2021. С. 52–57.
Кузнецова Г.В. Китай: на пути к цифровому лидерству // Азиатский мир в новых реалиях трансграничья: сборник научных статей Международной научно-практической конференции. М.: Российский экономический университет имени Г.В. Плеханова, 2021. С. 66–69.
Портер М. Конкуренция. М.: Издательский дом «Вильямс», 2001.
Портяков В.Я. Шэньчжэньский камертон. Трансформация модели экономического роста в Китае и развитие Шэньчжэня. М.: ИД «ФОРУМ», 2017.
Русских П.И. Специальная экономическая зона Шэньчжэнь на современном этапе развития // Скиф. Вопросы студенческой науки. 2020. № 7(47). С. 278–281.
Althaf S., Babbitt C.W. Disruption Risks to Material Supply Chains in the Electronics Sector // Resources, Conservation and Recycling. 2021. Vol. 167. DOI: 10.1016/j.resconrec.2020.105248
Belkadi F., Messaadia M., Bernard A., Baudry D. Collaboration Management Framework for OEM–Suppliers Relationships: A Trust-Based Conceptual Approach // Enterprise Information Systems. 2017. Vol. 11. Is. 7. P. 1018–1042. DOI: 10.1080/17517575.2016.1250166
Chang L-Ch., Ho W.-L., Tsai S-B., Quan Ch., Wu Ch-Ch. Dynamic Organizational Learning: A Narrative Inquiry into the Story of Huawei in China // Asia Pacific Business Review. 2017. Vol. 23. Is. 4. P. 541–558.
Cheng X., Tan J.D. The Competitive Advantage of PT UNIHAN in Electronic Manufacturing Industry // JMBI UNSRAT. 2023. Vol. 10. Is. 3. P. 1960–1972. DOI: 10.35794/jmbi.v10i3.49198
Chu Z., Zhou M., Zhang R. A Case Study of E-commerce Brand Evolution Based on OEM-ODM-OBM Path // International Conference on Human-Computer Interaction. Cham: Springer Nature Switzerland, 2023. P. 243–252. DOI: 10.1007/978-3-031-35921-7_16
Deng S., Xu J. Manufacturing and Procurement Outsourcing Strategies of Competing Original Equipment Manufacturers // European Journal of Operational Research. 2023. Vol. 308. Is. 2. P. 884–896. DOI: 10.1016/j.ejor.2022.11.049
Dong B., Zhou C., Tang W., Ren Y. Should Original Equipment Manufacturer Assist Noncompetitive Contract Manufacturer to Expand Capacity? // Omega. 2021. Vol. 103. DOI: 10.1016/j.omega.2021.102420
Eppinger E., Jain A., Vimalnath P., Gurtoo A., Tietze F., Chea R.H. Sustainability Transitions in Manufacturing: The Role of Intellectual Property // Current Opinion in Environmental Sustainability. 2021. Vol. 49. P. 118–126. DOI: 10.1016/j.cosust.2021.03.018
Ikumapayi O.M., Oyinbo S.T., Akinlabi E., Madushele N. Overview of Recent Advancement in Globalization and Outsourcing Initiatives in Manufacturing Systems // Materials Today: Proceedings. 2020. Vol. 26. Part 2. P. 1532–1539. DOI: 10.1016/j.matpr.2020.02.315
Krugman P. Geography and Trade. Leuven: Leuven University Press, 1991.
Niu B., Wang Y., Guo P. Equilibrium Pricing Sequence in A Co-Opetitive Supply Chain with the ODM as a Downstream Rival of its OEM // Omega. 2015. Vol. 57. P. 249–270. DOI: 10.1016/j.omega.2015.05.005
Park Y.W., Hong P., Shin G.C. Rising and Thriving in the Post COVID-19 Era: A Case Study of COSMAX, a Leader of the Korean Cosmetic Industry // Asia Pacific Business Review. 2023. Vol. 29. Is. 4. P. 1105–1124. DOI: 10.1080/13602381.2022.2059955
Porter M.E. Clusters and the New Economics of Competition // Harvard Business Review. 1998. Vol. 76. Is. 6. P. 77–90.
Schneider S., Sunyaev A. Determinant Factors of Cloud-Sourcing Decisions: Reflecting on the IT Outsourcing Literature in the Era of Cloud Computing // Journal of Information Technology. 2016. Vol. 31. P. 1–31. DOI: 10.1057/jit.2014.25
Sun F., Chen J., Yang H., Chen B., Wan Z. Production Outsourcing Decision in the Presence of Consumer’s Preference Uncertainty // Transportation Research Part E: Logistics and Transportation Review. 2023. Vol. 175. P. 1–17.
Svensson-Hoglund S., Richter J.L., Maitre-Ekern E., Russell J.D., Pihlajarinne T., Dalhammar C. Barriers, Enablers and Market Governance: A Review of the Policy Landscape for Repair of Consumer Electronics in the EU and the US // Journal of Cleaner Production. 2021. Vol. 288. DOI: 10.1016/j.jclepro.2020.125488
Tsai-Lin T-F., Chi H-R., Chang Y-Ch. The Business Model and Innovation Mix in the Transition of Contract Manufacturers in the Greater China Region // Asia Pacific Business Review. 2021. Vol. 27. Is. 3. P. 444–469. DOI: 10.1080/13602381.2021.1894844
Tsai-Lin T-F., Chi H-R., Chang Y-Ch. The Role of Business Model Innovation Mix in the Transition of Contract Manufacturers // Digitalization and Asia-Pacific Business Models: At the Crossroads of Multiple Cultures, Innovation and Value Creation / ed. by T. Chin, Ch. Rowley, Sh. Wang. London: Routledge, 2023. P. 114–122.
Wang L., Huo D., Motohashi K. Coordination Mechanisms and Overseas Knowledge Acquisition for Chinese Suppliers: The Contingent Impact of Production Mode and Contractual Governance // Journal of International Management. 2019. Vol. 25. Is. 2. DOI: 10.1016/j.intman.2018.10.003
Wang S., Guo M., Hu Y.X., Chiu Y.K., Jing C. Smart Manufacturing Business Management System for Network Industry Spin-Off Enterprises // Enterprise Information Systems. 2022. Vol. 16. Is. 2. P. 285–306. DOI: 10.1080/17517575.2020.1722254
Xie H., Huang R., Sun H., Han Z., Jiang M., Zhang D., Goh H.H., Kurniawan T.A., Han F., Liu H., Wu Th. Wireless Energy: Paving the Way for Smart Cities and a Greener Future // Energy and Buildings. 2023. Vol. 297. DOI: 10.1016/j.enbuild.2023.113469
Zhou B., Marjerison R.K., Chang F.H. Chinese OEM Manufacturing Roadmap: SMEs — To Brand or Not to Brand // Handbook of Research on Emerging Business Models and the New World Economic Order / ed. by J.M. Saiz-Alvarez. PA: IGI Global, 2022. P. 163–182. DOI: 10.4018/978-1-7998-7689-2.ch008
