Increasingly, China is becoming an engine for growth across Asia. The average of its annual growth rate has been more than 8 percent over the past ten years. Foreign firms invest in China primarily to take advantage of low labor cost, new market expansion. Korean firms also invest in China to make use benefits. Chinese government attract foreign firm to develop economy, technology and increase employment. But effectiveness of foreign investment is under expectation of Chinese government. So the policy is changed that Chinese government reinforces regulation in foreign investment, enacts the law that regulates foreign firms. To correspond environmental changes in China, Korean firms need to change strategy in China. They adopt new innovation like SCM(Supply Chain Management), and transfer technology, management knowhow, and skills to Chinese Supplier through SCM. The purpose of this research is provide a research framework for adopting SCM of Korean firm's suppliers. To archive purpose, I review literatures about SCM. This research proposes adoption factors of suppliers in SCM that are relational specific assets, network effect, expected benefits, and adoption cost. These factors are based on transaction cost theory, resource-based view, network theory, and innovation diffusion theory.