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

85 NTU Management Review Vol. 29 No. 1 Apr. 2019 Proposition 5: Firms that have a dual business model for a product are more likely to enhance product/service innovation potential through external synergy while developing segment-making capabilities through internal synergies. 5. Discussion and Implications So far, we have proposed a capabilities-based framework to elucidate how dual BMs embracing own-brand and OEM business can be logically defined and properly executed. We highlighted two critical considerations, product/service innovation potential and segment-making capabilities, in choosing right-fit dual BMs. The former reflects an outside-in view of product suppliers to evaluate their relative competitiveness in potential target markets, while the latter represents an inside-out view of suppliers to gauge their existing branding capabilities as opposed to that of potential OEM buyers. By considering both outside-in adaptive and inside-out dynamic capabilities, less well-endowed product suppliers can strategically maneuver in the market through different dual BM settings. To make this framework more useful, we also laid out key measures of respective constructs for mangers to align individual judgments and reach strategic consensus. This helps resolve internal controversies concerning the type of dual BM that works best for a company. In addition, our exploratory study has identified four distinctive types of synergy dual BMs may create: cross-signal effect, organizational learning, resource pooling, and long- short term outcomes. The first type of synergy enhances suppliers’ product/service innovation potential while the latter three develop suppliers’ segment-making capabilities. Our study helped us understand the association between types of synergy and product characteristics. For exploratory products, learning by providing contractual manufacturing services to leading OEM buyers is the key motive for BM choice. This is because organizational learning captures more product knowledge for transitioning products from an exploration to an exploitation phase in order to generate outcomes. However, as products evolve to become more exploitative, balancing long- and short-term outcomes becomes the strategic driver for implementing brand-and-OEM dual BMs. These findings not only clarify how dual BMs with brand and OEM can be formulated but also specify types of synergy underlying dual BMs that are critical for success. Our research both enriches and enhances the arguments in Lee and Chen (2000),