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A Resource-based View of the Capabilities Transformation of a Design Firm: An Action Research

Fang-Chuan LIN and Meng-Dar SHIEH
IJCCI volume 3, issue 3, July 2016

This study examined the capabilities transformation of design firms in the manufacturing supply chain to own-branding under the resource-based view. Many Taiwan factories are upgrading from Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) to Own Brand Manufacturing (OBM). In this development model, the smaller factories outsource to design firms to upgrade their design capabilities to obtain more manufacturing orders. Thus, these design firms act as part of the manufacturing supply chain in Taiwan. How can design firms in the manufacturing supply chain transform to own-branding based their design capabilities? This study used participant observation and analyzed the results based on the resourced-based view framework. Our findings showed that the capabilities transformed during the transition to own-brand production include product design creativity, patent barriers, product and brand identity, marketing communication, marketing positioning, distribution channel management, supply chain management for quality satisfaction and sales team management. The results are useful for examining the capabilities transformation of a design firm.

Keywords: Design firm, Own-branding, Participant observation, Resource-based view

Category: Industry Insight