Abstract：Why is it so tough for local OEMs upgrading? Existing literature mostly emphasizes the shortage of technology accumulation.However, Local OEMs have always been learning from others.With the declining of marginal benefit, few could succeed and most of them are trapped in the smile curve line.Why? We think it is because some OEMs are good at learning, then succeed and others not.We call this learning dysfunction, and point out that paradox of efficiency and effectiveness is the main reason, which forms the organization growth blinds in the development of OEMs.In the last part we also provid that local OEMs should overcome learning dysfunction by two kinds of transformation of learning mode.
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