Abstract
Small- and medium-sized enterprises (SMEs) expand into international markets either with brand names (OBM, original brand manufacturing) or without brand names (OEM, original equipment manufacturing). OEMs and OBMs have different core competitive advantages: OEMs offer low-cost production, while OBMs provide advanced design and branding (Lee et al. 2015). According to the resource-based view (RBV), brand name is an imperfectly imitable asset (e.g., Barney 2001) that enhances SMEs’ competitive advantages. While the international activities associated with OBMs and OEMs differ, the impact of brand names on internationalization is limited in the literature. Built on the RBV, this study examined the differences between OBM and OEM in terms of SMEs’ commitment to marketing and technology, activities (speed, scale, and scope), and performance in international markets. The hypotheses were tested by examining SMEs in South Korea due to the ample existence of OEM and OBM among SMEs as a result of the country’s export-led global growth.
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