Key Factors for a Successful OBM Transformation with DEMATEL–ANP

Abstract

Production costs and global competition have increased sharply in recent years, forcing manufacturers to upgrade to the original brand manufacturer (OBM) to survive and thrive and capture more profit margins. However, studies that explore key factors that affect the success of such an important transition are lacking. Therefore, this study aims to investigate the key factors that will influence the success of contract manufacturers to upgrade to the OBM on the basis of a decision-making trial and evaluation laboratory with an analytic network process. Our results identify six key factors that exhibit a cause-and-effect relationship among the key criteria. Moreover, organizational innovation will determine the difference between the success and the failure of an OBM transition apart from material and component stability. Our findings can help researchers, policy makers, and practitioners increase their understanding of how to upgrade manufacturers successfully in global value chains.

Keywords

• original brand manufacturers
• multi-criteria decision-making
• DEMATEL
• ANP
• Delphi method