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 AJIBM  Vol.6 No.2 , February 2016
Study on the Third Industrial Revolution and Paradigm Transformation of China’s Manufacturing Industry—Based on Theoretical Analysis of Scale Economy and Scope Economy
Xiaowen Zeng
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Abstract: After the US subprime mortgage crisis in 2008, European and American developed countries have deepened “the third industrial revolution” characterized by intelligence, digitization and individualization in the global market, so as to promote their industry. This brand-new industrial revolution tide will deeply change the paradigm of traditional manufacturing industry. Through the extensive application of advanced manufacturing technology like 3D print technology, flexible production technology and reconfigurable production system, the importance of large-scale standardized production under the guidance of scale economy in modern market declines gradually, and more and more attention is paid to the scope economy idea that can adapt to the market rapidly and satisfy consumers’ individualized needs. By analyzing the trend and essence of the third industrial revolution, this paper expounds the impacts that might be caused to Chinese traditional manufacturing industry, such as the reduction of labor cost advantage, localization and decentralization of production mode, gradual deepening of service degree in manufacturing industry, and suppression on the traditional industry upgrading path and industrialization process. Meanwhile, based on the analysis of scale economy and scope economy, the ideological transformation from scale economy to scope economy is further proposed; theoretical analysis is made for the applicability of these two under the environment of the third industrial revolution, and the theoretical basis and development direction for paradigm transformation of Chinese manufacturing industry in the future are pointed out.
Keywords: Paradiam Transformation, Chinese Manufacturing Industry, Production Mode
Cite this paper: Zeng, X. (2016) Study on the Third Industrial Revolution and Paradigm Transformation of China’s Manufacturing Industry—Based on Theoretical Analysis of Scale Economy and Scope Economy. American Journal of Industrial and Business Management, 6, 73-82. doi: 10.4236/ajibm.2016.62006.
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