Buyer-supplier embeddedness and patterns of innovation
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 2 March 2015
Abstract
Purpose
The purpose of this paper is to describe different ways in which a buyer and supplier can be embedded in a dyadic relationship and how these differences influence patterns of inter-firm innovation activities and outcomes. Specifically, to address the relative paucity of theoretical work on how dyadic configurations influence parties’ joint innovation behavior, this study examines how different buyer-supplier embeddedness (BSE) configurations change the four choices that pertain to the levels of involvement buyers and suppliers exhibit in inter-firm innovation activities. These choices concern the processes buyers use to engage suppliers; the scope of efforts in each party; the locus of effects determining the beneficiaries; and the extent to which parties disclose private innovations within the relationship.
Design/methodology/approach
Drawing on social embeddedness literature, the authors conceptualize dyad level, BSE in two dimensions: relational and structural. The relational dimension describes the quality of relationship, while the structural dimension describes the intensity of exchanges between the parties. Together these dimensions allow the authors to map the differences in BSE configurations and provide a basis for exploring their links to inter-firm innovation patterns.
Findings
The authors demonstrate the configurational approach to the innovation patterns in inter-organizational setting. That is, the authors conclude that different configurations of BSE are likely to produce distinctive patterns of choices for inter-firm innovation activities.
Originality/value
This study applies social embeddedness perspective to conceptualize dyadic BSE. Adoption of this concept allows dimensionalizing the dyadic relationships into two distinct dyadic elements, relational, and structural dimensions. Also, the concept has rich implications for how partner firms interact and share information. The dyad’s innovation potential and patterns are considered based on the configurations of dyadic embeddedness.
Keywords
Citation
Kim, Y., Choi, T.Y. and Skilton, P.F. (2015), "Buyer-supplier embeddedness and patterns of innovation", International Journal of Operations & Production Management, Vol. 35 No. 3, pp. 318-345. https://doi.org/10.1108/IJOPM-05-2013-0251
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited