Design Management Capability Development in Global Value Chains

What is it about?

The current models of design management have developed from advanced countries perspective and not convenient for latecomer country firms. This theoretical paper established a linkage between design management, dynamic capabilities and global value chain (economic development) literatures by a new framework which is important not only for academics but also for practitioners. The design management and its levels in latecomer firms are closely related to the strategy pursued in global value chains. These strategies can be OEM (original equipment manufacturer), ODM (original design manufacturer) and OBM (original brand manufacturer). A company (for ex. Samsung, LG, Tata Motors, Arçelik..) can enter these global value chains as an OEM manufacturer and can be achieve functional upgrade from OEM to ODM, and ODM to OBM by developing its manufacturing, R&D, design and brand building (marketing and sales) capabilities. At OEM position companies use operational design management capability, at ODM position companies use functional design management capability and at OBM position companies use strategic design management capability.

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Why is it important?

This paper brings the global value chain perspective into design management literature. This provides a more realistic perspective for assessing design management activities of all firms and design management capability development processes of firms located in latecomer countries or newly industrialised countries. It is also important for firms pursuing export-oriented strategy in the global economy and for academics working in design management and design strategy.

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