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

Exploring Dual Business Model Choice of Brand and OEM Businesses 84 In summary, long-short term outcomes synergy, which improves financial performance, is the most important motivation. Following this is the resource pooling synergy created by large volumes, followed by organizational learning. Formally, we draw the following proposition concerning decision motivation on exploitative products. Proposition 4: Firms that adopt a dual business model for an exploitative product are more likely to be motivated by balancing long-short term outcomes through OEM business, while resource pooling and organizational learning synergies are secondary. It is important for decision makers to be aware of the permanent disequilibrium of dual BM choices for each product (Demil and Lecocq, 2010). External synergy expands the product/service innovation potential after working with OEM buyers. The main reasons are: First, most OEM buyers are industry leaders in their own areas, and have efficient network ties with complementary industry leaders (Hallen and Eisenhardt, 2012). OEM buyers can provide focal suppliers with access to otherwise unreachable resources, potentially helping them achieve product design dominance. AV-Firm’s marketing director explained: “ Our branded product attracted HP’s attention. HP introduced Microsoft to work with us on tuner design. We could not have had access to Microsoft in the beginning. Eventually we became its technology partner. ” Second, the potential view from focal suppliers should be different from that of buyers. Most OEM buyers are dominant players, own technology standards, and/or create entry barriers. Through their channels, suppliers can access previously inaccessible markets and technologies. The president of the Japanese office explained: “ After Beta’s OEM, Hitachi started buying our branded video conferencing products and also sold them in the large companies market. Previously we only focused on SMBs. ” Moreover, internal synergies impact the segment-making capabilities toward strong positioning. This is because suppliers can gain exploratory knowledge for product innovation and customer service through OEM business development, gain large but short term outcomes, and so forth. These factors improve suppliers’ product novelty creation, channel bonding, and/or marketing execution abilities. The president of the US office explained: “ We earned almost as much profit from the OEM buyer as from own-brand document cameras. This further developed our products’ marketing capabilities. ” Formally: