Leveraging supplier orientation for innovation: Exploring the impact of supply management innovativeness and innovation partnership

Abstract

Industry 4.0 has created new opportunities for enterprise innovation by leveraging emerging technologies. External innovation represents a valuable source of ideas and knowledge for internal innovation, and enterprises are increasingly leveraging their supplier relationships to gain a competitive advantage. Some researchers suggest that suppliers enhance the effectiveness and outcomes of lean innovation. To deepen our understanding of the relationship between supplier orientation and innovation outcomes, this study explores the mechanisms through which supplier orientation contributes to enhancing innovation performance, with a specific focus on the role of supplier orientation in improving supply management innovativeness and innovation partnerships. Survey data from 209 Chinese firms engaged in innovation practices was analyzed using a hierarchical regression based on resource dependency theory. Results reveal that supplier orientation positively influences supply management innovativeness and innovation partnerships. Supply management innovativeness and buyer–supplier innovation partnerships both contribute to improved innovation performance. Our findings suggest that the buyer–supplier innovation partnership plays a moderating role in the relationship between supply management innovativeness and innovation performance. These insights provide a valuable basis for developing innovative strategies and managing inter‐firm relationships, emphasizing the importance of supplier relationship management practices in enhancing firms' competitiveness and performance by leveraging external resources and knowledge.