Innovation sourcing is the acquisition and integration, rather than internal development, of critical knowledge from external providers. This key strategy has emerged as a necessity for survival in many markets. Consequently, sourcing processes are applied to complement internal design capabilities with external knowledge and ultimately improve innovation performance. Firms use external knowledge to enhance products and services, gain market share, and improve profits. The literature regarding the phenomenon of innovation sourcing is largely fragmented, limiting the theoretical advancement in the field. This article presents a systematic literature review that synthesizes the body of knowledge regarding innovation sourcing and derives a conceptualization of how innovation sourcing and its main dimensions are linked to innovation performance. A conceptual model, key dimensions, and an agenda for future research are significant results of this research.
Purpose A supplier may sell not only to one buyer (sole relationship configuration) but also to the buyers competitors (shared relationship configuration) for a specific product category. This study examines the performance implications when suppliers establish shared relationships with the buyer’s competitors.Design/methodology/approach Secondary data are used to test hypotheses relating a supplier’s relationship configurations to its operational performance. A seemingly unrelated regression approach (SUR) is applied to analyze the data, followed by endogeneity checks of the empirical findings.Findings The study shows that suppliers with less-shared ties with buying firms’ competitors exhibit superior inventory efficiency and asset turnover. Thus, suppliers can improve operational efficiency by creating relatively exclusive, deep and trust-based relations instead of more extensively shared and shallower relationships.Research limitations/implications Based on agency theory as a theoretical lens and aerospace industry data, this research contributes by addressing the supplier’s perspective and linking its operational efficiency performance with its chosen supply relationship configuration.Practical implications Suppliers need to understand the performance implications of choosing relatively exclusive relationships versus shared relationships with buying firms. The research provides new insights for managers and can guide their supply chain decision-making.Originality/value Little is known about how a supplier’s relationship configurations can elevate, or impair, its operational efficiency. While conventional wisdom holds that suppliers should focus on multiple avenues of revenue growth by selling to buyers’ competitors, this study demonstrates that more sales to a buying firm’s rivals might, in fact, reduce a supplier’s efficiency.
Purpose
The purpose of this research is to develop an understanding of how purchasing can become meaningfully involved in complex business-to-business service purchases.
Design/methodology/approach
A single in-depth case study method of an exemplar organization was applied to better understand the purchasing function’s role in adding to the value proposition in complex, non-traditional business-to-business service purchases.
Findings
Powerful allies or advocates can mediate purchasing involvement in service procurement. However, once the involvement is initiated, purchasing must make a positive contribution with respect to the specific needs and expectations of the budget owner to retain its influence.
Research limitations/implications
This research extends institutional theory to show how powerful allies or advocates can mediate purchasing involvement in the complex services spend.
Practical implications
This study describes the potential impact of purchasing’s involvement in complex services spend and highlights the opportunities for purchasing managers to improve supplier management and drive out additional costs.
Originality/value
For the business practitioner, this research provides evidence regarding how individual functions can gain influence in the organization. A conceptual model describes the meaningful involvement of purchasing in complex business-to-business service purchases.
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