Transformation of Chinese OEM-----Case study

Abstract: Due to the globalization trend, the transformation of Chinese OEM has become a hot topic in the last decades. Although the previous literature suggested that there were many different determinants influencing firms to be successful companies, there is a lack of combination in the context of Chinese OEM. Thus, the purpose of this research study is to find out the approach of Chinese OEMs to successfully launch their own products based on three perspectives - organizational structure, processes and culture.Applying a qualitative approach, the data was gathered through semi-structured telephone interviews with the senior personnel of one Chinese OEM company (Damekiss), complemented with secondary data collected from the company’s and public websites.The results of analysis showed different views of how organizational structure, process and culture influencing on the transformation of Chinese OEM. We found that four functions (i.e. manufacturing, distribution, new product development and human resource management) influenced the transformation of Chinese OEM in organizational structure perspective. Among these functions, human resource management and distribution are extremely weak in the organizational structure of Chinese OEM. Regarding to the process of formulating these functions, the deep understanding of the customers’ preferences and collaboration partners that influenced building distribution were figured out. In the case company, it showed a relative poor ability on distribution which would be the barriers for further developing. Building HRM process was raised as another issue of the transformation of Chinese OEMs. According to the case company, HRM was poorly organized. The recruitment did not get enough attention; the training programs stayed at a lower level. The last not least, the corporate culture was also proven to be playing an important role in the transformation of Chinese OEMs. Awareness of corporate culture as one of significant aspects influencing the entire company was found in the case company. Slogan, company heroes and rituals as an internal culture were properly used to motivate employees.