The influence of supply network structure on firm innovation

Marcus A. Bellamy · Soumen Ghosh · Manpreet S. Hora

527 citations0/0 files storedJournal of Operations Management

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Quality and Supply Management Innovation and Knowledge Management Business Strategy and Innovation

Abstract

Abstract In this study, we examine the structural characteristics of supply networks and investigate the relationship between a firm's supply network accessibility and interconnectedness and its innovation output. We also examine potential moderating effects of absorptive capacity and supply network partner innovativeness on innovation output. We hypothesize that firms will experience greater innovation output from (1) higher levels of supply network accessibility and supply network interconnectedness, (2) the interaction between the levels of these two structural characteristics, (3) the moderating role of absorptive capacity on supply network accessibility and the moderating role of supply network partner innovativeness on supply network interconnectedness. Supply network partner relationships are drawn in the context of the electronics industry using data from multiple sources. We use social network analysis to create measures for each supply network structural characteristic. Using regression techniques to test the relationship between these structural characteristics and firm innovation for a sample of 390 firms, our findings suggest that supply network accessibility has a significant association with a firm's innovation output. The results also indicate that interconnected supply networks strengthen the association between supply network accessibility and innovation output. Moreover, the influence of the two structural characteristics on innovation output can be enhanced by a firm's absorptive capacity and level of supply network partner innovativeness. By addressing the need for deeper structural analysis, this study contributes to supply chain research by accounting for the embedded nature of ties in supply networks, and showing how these structural characteristics influence the knowledge and information flows residing within a firm's supply network.

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References

1973The Strength of Weak Ties 1990Absorptive Capacity: A New Perspective on Learning and Innovation 1985Economic Action and Social Structure: The Problem of Embeddedness 1998Social Capital, Intellectual Capital, and the Organizational Advantage 2000The Value of Information Sharing in a Two-Level Supply Chain 2000Supply Chain Inventory Management and the Value of Shared Information 2001Supply networks and complex adaptive systems: control versus emergence 2002The Collaborative Supply Chain

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