The pool effect of dyad‐based capabilities on seller firms' innovativeness

Abstract

Purpose

The main purpose of this paper is to analyze which relational resources and capabilities are determinant in fostering innovations and to what extent these innovations are relevant in achieving superior business results.

Design/methodology/approach

The proposed hypotheses are tested in an empirical study carried out on a sample group of 106 Spanish companies from the sub‐industries of machine tool manufacture and manufacturers of machinery for specific industries, operating in a business‐to‐business context. Information was gathered by means of telephone interviews with sales, production or management representatives of machinery suppliers. Analysis of data was performed by means of partial least squares regression. The exchange of knowledge leading to shared learning, investments in idiosyncratic or relation‐specific assets, non‐specific complementary resources and capabilities, and dyad governance mechanisms are the analyzed factors.

Findings

The results confirm that the existence of customer‐supplier relationships, which generally begin from contracts, and are based on trust and resource interdependence, tends to encourage the exchange of knowledge, specialized resources and idiosyncratic investments. It is also observed that the more committed firms are to the relationship, the greater the resulting increase in their innovativeness. In this regard, investment in idiosyncratic assets for the customer‐supplier relationship is seen to be a more effective practice for improving the supplier's innovativeness.

Originality/value

Contrary to the majority of empirical studies focused on distinguishing resources and capabilities within the firm, this paper defines and recognises some of those which lie in the realm of the dyad. Also, it studies the role from governance mechanisms of the relationship acting both as a joint capability by itself, as well as an antecedent of the other previously mentioned capabilities.

Citation

Charterina, J. and Landeta, J. (2010), "The pool effect of dyad‐based capabilities on seller firms' innovativeness", European Journal of Innovation Management, Vol. 13 No. 2, pp. 172-196. https://doi.org/10.1108/14601061011040249