Network embeddedness and local firms' strategic upgrading in the Global Manufacturing Network

The Global Manufacturing Network (GMN) is an innovative manufacturing system that has super manufacturing and servicing capabilities, and provides a platform for local firms in developing countries to acquire knowledge and capabilities. In this paper, after the literature reviews of the GMN and network embeddedness, the exploratory work suggests that Chinese local manufacturing firms can acquire knowledge and capabilities by embedding themselves into the GMN. There are four stages through which manufacturing firms embed themselves into the GMN and upgrade their strategies, which are penetration based on low-cost manufacturing, network embedding and evolving, accumulating knowledge and capabilities, and strategic upgrading.