Abstract
This chapter examines the strategic and operational issues related to supply chain configurations between set-makers and back-end suppliers in China. The case studies examine supply chain practices through low cost module (LCM) and demand chain management (DCM) strategy, which includes the movement of production facilities in China, integration of upstream and downstream suppliers, and vigorous distribution network building. The case study suggests that these firms respond to the growing domestic demand in China while it addresses the competitive challenges in global markets outside of China with their supply and demand network capabilities. This chapter also shows how Korean global firms in China address customs and border crossing issues between suppliers and hosting countries.
…..supply chain integration (SCI)…is the degree to which a manufacturer strategically collaborates with its supply chain partners and collaboratively manages intra- and inter-organizational processes, in order to achieve effective and efficient flow of products and services, information, money and decisions, to provide maximum value to the customer. (Barbara Flynn et al. 2010).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abdelkafi, N., Pero, M., & Blecker, T. (2011). NPD-SCM alignment in mass customization. In F. S. Fogliatto & G. J. C. DaSilveira (Eds.), Mass customization: Engineering and managing global operations. Springer Series in Advanced Manufacturing (pp. 69–85).
Bao, Y., Chen, X., & Zhou, K. Z. (2012). External learning, market dynamics, and radical innovation: Evidence from China’s high-tech firms. Journal Business Research, 65(8), 1226–1233.
Chen, Y. J. (2011). Structured methodology for supplier selection and evaluation in a supply chain. Information Sciences, 181(9), 1651–1670.
Christensen, C. M., Verlinden, M., & Westerman, G. (2002). Disruption, disintegration and the dissipation of differentiability. Industrial and Corporate Change, 11(5), 955–993.
Doran, D., Hill, A., Hwang, K., & Jacobs, G. (2007). Supply chain modularization: Cases from the French automobile industry. International Journal of Productions Economics, 106(1), 2–11.
Dunning, J. H. (1979). Explaining changing patterns of international production: In defense of the electric theory. Oxford Bulletin of Economics and Statistics.
Dunning, J. H. (1989). Multinational enterprises and the growth of services: Some conceptual and theoretical issues. The Service Industries Journal, 9(1), 5–39.
Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71.
Fujimoto, T. (2006). Product architecture and product development capabilities in automobile. MMRC Discussion Paper, 74, 1–12.
Hasegawa, S. (1998). Theory of multi-national corporations internalization and strategic alliance. Donmungwan (In Japanese).
Hasegawa, S. (2002). Theory of international business. In H. Yoshihara (Ed.), Introduction to international business studies. Yuhikaku (pp. 62–80). (In Japanese).
Hatani, F. (2009). The logic of spillover interception: The impact of global supply chains in China. Journal of World Business, 44(2), 158–166.
Hoetker, G., & Mellewigt, T. (2009). Choice and performance of governance mechanisms: Matching alliance governance to asset type. Strategic Management Journal, 30(10), 1025–1044.
Hymer, S. (1976). The international operations of national firms: A study of direct foreign investment. Doctoral dissertation. MIT Press.
Kang, M., Wu, X., Hong, P., & Park, Y. (2012). Aligning organizational control practices with competitive outsourcing performance. Journal of Business Research, 65(8), 1195–1201.
Lee, J. H., & Kim, C. O. (2008). Multi-agent systems applications in manufacturing systems and supply chain management: A review paper. International Journal of Production Research, 46(1), 233–265.
Li, J. J., Poppo, L., & Zhou, K. Z. (2010). Social capital, contractual arrangement, and local knowledge acquisition by international subsidiaries. Strategic Management Journal, 31(4), 349–370.
Li, J. J., & Zhou, K. Z. (2011). How foreign firms achieve competitive advantage in the Chinese emerging economy: Managerial ties and market orientation. Journal of Business Research, 63(8), 856–862.
Lin, Y., Zhou, L., & Shi, Y. (2009). 3C framework for modular supply networks in the Chinese automotive industry. International Journal of Logistics Management, 20(3), 322–341.
Park, Y. W., Shintaku, J., Tomita, J., Hong, P., & Moon, G. W. (2008). Modularity of flat panel display TV and operation management practices: A case study of LG electronics. In The 3rd World Conference on Production and Operations Management, 5–7 Aug 2008 (pp. 200–215).
Park, Y. W., & Hong, P. (2012). Building network capabilities in turbulent competitive environments: Practices of global firms from Korean and Japan. Boca Raton, FL, USA: CRC Press.
Ro, Y., Liker, J. K., & Fixon, S. (2007). Modularity as a strategy for supply chain coordination: The case of U.S. IEEE Transactions Engineering Management, 54(1), 172–189.
Sako, M., & Helper, S. (1998). Determinants of trust in supplier relations: Evidence from the automotive industry in Japan and in the United States? Journal of Economic Behaviour and organisation, 34(3), 387–417.
Salvador, F., Forza, C., & Rungtusanatham, M. (2002). Modularity, product variety, production volume, and component sourcing: Theorizing beyond generic prescriptions. Journal of Operation Management, 20(5), 549–575.
Sheng, S., Zhou, K. Z., & Li, J. J. (2011). The effects of business and political ties on firm performance: Evidence from China. Journal of Marketing, 75(1), 1–15.
Shintaku, J. (2006). The forming of manufacturing network in the East Asia and positioning of Japanese firms. MMRC Discussion Paper, 92, 1–18. (In Japanese).
Shintaku, J. (2008). Manufacturing technology strategy of LCD industry in Korea. Akamon Management Review, 7(1), 55–74. (In Japanese).
Shintaku, J., Ogawa, K., & Yoshimoto, T. (2006). Architecture-based approaches to international standardization and evolution of business models. MMRC Discussion Paper, 96, 1–21.
Shintaku, J., Park, Y. W., Tomita, J., Tatsumoto, H., & Yoshimoto, T. (2007). Architecture and international division of labor in LCD industry. In 14th National Convention of Japan Academy of International Business Studies, Takasaki City University of Economics in Japan, 28–29 Oct 2007 (In Japanese).
Shintaku, J., Tatsumoto, H., Yoshimoto, T., Tomita, J., & Park, Y. W. (2008). Architecture based analysis on international technology transfer and international division of labor. Hitotsubashi Business Review, 56(2), 42–61. (In Japanese).
Sturgeon, T. (2002). Modular production networks: A new American model of industrial organization. Industrial and Corporate Changes, 11(3), 451–496.
Tanikaga, T., Chou, I., Chin, R., & Asahi, S. (2004). Fundamentals of Chinese logistics. Nittsu Research Institute and Consulting (In Japanese).
Ulku, S., & Schmidt, G. M. (2011). Matching product architecture and supply chain configuration. Production and Operations Management, 20(1), 16–31.
Vernon, R. (1966). International investment and international trade in the product cycle. Quarterly Journal of Economics, 80(2), 190–207.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2020 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Hong, P., Park, Y.W. (2020). Supply Chain Integration in China: Case Study. In: Rising Asia and American Hegemony. Springer, Singapore. https://doi.org/10.1007/978-981-13-7635-1_14
Download citation
DOI: https://doi.org/10.1007/978-981-13-7635-1_14
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-7634-4
Online ISBN: 978-981-13-7635-1
eBook Packages: Business and ManagementBusiness and Management (R0)