Authors: Ian Wilkinson; K. Sivakumar; Subroto Roy
In recent years, a number of researchers have questioned the traditional notion of the buyer as the sole generator of innovation in supply chains. Innovation generation has increasingly been recognized as an outcome of interaction between a firm and various outside entities. According to this view, supplier involvement and alliances are routes to innovation generation. Despite this realization, only very limited conceptual research has focused on innovation generation in buyer-seller relationships in supply chains.To alleviate this important gap in the literature, this article develops a conceptual model of innovation generation in buyer-seller relationships in supply chains. We maintain that innovation generation in supply chain relationships is caused by interactions between buyers and sellers. We argue that due to knowledge redundancy effects, new relationships are likely to help generate radical innovations, while old relationships are essential to incrementally innovate and to make innovations commercially viable on a continuous basis. Several factors that are internal and external to the relationship moderate the link between interaction and innovation generation. We integrate several theories to explain the role of interactions in generating innovations in supply chain relationships. We conclude by delineating the managerial implications of our research and offering guidelines for future empirical research.
Journal: Journal of the Academy of Maketing Science (32 (1) – 61-79)
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Publish Year: 2004
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