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A Study of Relationship among Social Capital, Supplier Involvement, and Enteprise Upgrading

In many cases, OEMs must respond to new market opportunities by innovating and increasing value added, a process also known as "upgrading". This paper examines how OEMs respond to upgrading opportunities through supplier involvement. Two specific types of upgrading are considered: process upgrading and product upgrading. In addition to, we use social capital to research how OEMS can be involved in foreign brand manufacturer's new product development process, i.e., SI, and our model argues that aspects of social capital are social interaction, relationship quality, and network ties. We provide a study of relationship among social capital, supplier involvement, and upgrading. We tested this model with data from 184 OEMs firms in the Pearl River Delta, and the hypothesis was tested in the end.