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

Exploring Dual Business Model Choice of Brand and OEM Businesses 78 product development. The supplier’s role is not merely to complement buyers. Rather, it can also gradually enhance its own marketing capabilities, becoming a potential source of innovation that buyers may be able to access (Liu, Tsou, and Chen, 2013). The BU head of network video recorders offered an example: “ From Gamma, we informally learned about soft-value design, which enabled us to make a more user-friendly user interface and increase our competitive arsenal. ” Resource pooling occurs in dual BMs when both BMs share production capacity, enhancing suppliers’ cost position, and letting them flexibly adjust excess capacity and respond to temporary fluctuations in market demand (Lee and Chen, 2000). For example, the CFO explained: “ The total factory overhead costs with and without Alpha OEM document camera were: $4.43 and $6.1 million for 2012, $3.3 and $6.6 million for 2013, and $4.3 and $7.84 million for 2014. The total reduction was $8.51 million. ” Long-short term outcomes occur when dual BMs have duality in performance measurement (Lavie et al., 2010). Brands have more stable and time-consuming business activities, so long-term outcomes are more critical. OEM activities are project-based, bringing in large orders in short bursts, with a focus on short-term outcomes. For example, the US office president explained: “ Even with fruitful branded long-term outcomes, we still need to maximize outcomes through Alpha’s profitable short-term business. ” 4.4 Decision Motivations and Order of Importance The order of importance of the types of internal synergy differs for each dual BM. According to our research the decisive variable is whether the OEM product is exploitative or exploratory. We discuss these terms below (see also Table 4).