Supplier centrality, innovation value and supplier acquisition: evidence from US high-tech manufacturing firms
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 14 October 2021
Issue publication date: 23 February 2022
Abstract
Purpose
The importance of supply chain network centrality has been widely recognized in the manufacturing literature. This study extends this literature by investigating the relationship between network centrality and innovation value. “Innovation value” refers to an innovation's impact, quality and potential future contribution to technological development in a business community. This study also aims to examine whether the relationship between supplier centrality and innovation value is contingent upon supplier acquisition.
Design/methodology/approach
The study hypotheses are tested with archival data collected from US high-tech manufacturing industries over the 17-year period. Negative binomial regression analysis was used to test the hypotheses.
Findings
The authors found that supplier centrality has a significant positive relationship with innovation value. Moreover, an increase in supplier acquisition activities makes the relationship between supplier centrality and innovation value more positive.
Originality/value
This study contributes to the manufacturing and technology management research by exploring the impact of supplier centrality on innovation value. The results of this study shed light on the importance of a firm's central network position in enhancing the impact and quality of innovation. This study uncovers contingencies that help realize the potential benefits of holding a central network position.
Keywords
Acknowledgements
The authors are particularly grateful to the Editor-in-Chief, Harm-Jan Steenhuis and anonymous reviewers for their constructive comments and insightful suggestions. The authors thank Pengcheng Zhu for his help in collecting data. This work was supported by the Coggin College of Business Endowed Professorship Fund, the Ministry of Education of the ROK and the National Research Foundation of Korea (NRF-2019S1A5C2A02081304), and the Ministry of Science and ICT of the ROK & KIRD.
Citation
Kim, D.-Y. and Fortado, B. (2022), "Supplier centrality, innovation value and supplier acquisition: evidence from US high-tech manufacturing firms", Journal of Manufacturing Technology Management, Vol. 33 No. 2, pp. 378-398. https://doi.org/10.1108/JMTM-05-2021-0169
Publisher
:Emerald Publishing Limited
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