臺大管理論叢 NTU Management Review VOL.29 NO.1

77 NTU Management Review Vol. 29 No. 1 Apr. 2019 Overall, the capabilities of dynamically reconfiguring and integrating internal resources affect suppliers’ decision to focus on brand or OEM. To adapt to fast-changing markets, suppliers can adjust the degree of emphasis on brand or OEM in a dual BM (see Figure 2). After dual BMs are implemented, the complementary or substitutive relationship between brand and OEM business decides the direction of the arrow shown in Figure 2. Formally, we propose the following two propositions regarding dual BM choice: Proposition 1: Firms that adopt a dual business model for a product with strong (weak) segment-making capabilities are more likely to choose the brand-reliant or brand-dependent (OEM-dependent or OEM- reliant) model. Proposition 2: Firms that adopt a dual business model for a product with high (low) product/service innovation potential are more likely to choose the model with a higher brand (OEM) ratio. 4.3 Why a Dual Business Model is Chosen Our data demonstrates that decision makers are motivated by four types of synergy: cross-signal effect, organizational learning, resource pooling, and long-short term outcomes (see Figure 2). Cross-signal effect is an external synergy, which occurs when dual BMs create signals that straddle the connection between public branded retail channels and hiding suppliers’ desire for OEM (Clair, Beatty, and Maclean, 2005). Brand BMs signal that product quality has been approved by users through market competition. They attract OEM buyers who want to sell similar products. OEM BMs subtly signal that products have the approval of famous OEM buyers, thus avoiding being seen as immature in unfamiliar brand channels (Arru ada and Vázquez, 2006). In other words, brands and OEMs create opportunities for each other, as the president of the Japanese office explained: “ We sold a few branded video conferencing products in the Japanese retail market, which attracted Beta to do OEM with us. Then, Beta induced Hitachi to carry our brand in the retail market. ” Organizational learning occurs when dual BMs allow suppliers to learn from large buyers, thereby advancing their own strategic capabilities. Suppliers can acquire external advice and benchmarking from buyers, learn about buyers’ technological strengths and marketing approaches, and imitate their operation rules through informal contacts, training, and knowledge sharing (Dyer and Singh, 1998; Friesl, 2012; Wen and Lee, 2012). Suppliers can then explore more business opportunities in new markets and new