Linkages between Firm Innovation Strategy, Suppliers, Product Innovation, and Business Performance: Insights from Resource Dependence Theory

Purpose The purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation. Design/methodology/approach Structural equation modeling and hierarchical linear regression are used to test hypotheses. Findings The results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. The results also indicate that the buyer-supplier relationship does not moderate the relationship between innovation strategy and innovation performance. Research limitations/implications This study demonstrates that how a firm builds the conditions to effectively leverage the complementary resources and capabilities of suppliers directly influence innovation outcomes and business performance. Practical implications An important factor in firms achieving their product innovation goals is the selection and management of suppliers that are strategically aligned with regard to innovation. While managers need to develop internal innovation capabilities, partnering with like-minded organizations, and creating conditions for effective cooperation are key drivers of innovation outcomes. Originality/value In contrast to prior research that has examined operational issues, this study shows how the strategic alignment of buyers and suppliers with regard to innovation is an antecedent of product innovation outcomes. Moreover, it adds to a limited literature on supply chain management practices in emerging markets

An Examination of Product Innovation and Buyer-Supply Relationships in Pakistani Firms

The purpose of this paper is to explore the interface between buyers and suppliers in the context of product innovation in an emerging economy. Specifically, it examines the strategic and tactical initiatives necessary to drive inter-organizational alignment and thus positive innovation outcomes. It also examines the impact of organizational characteristics on product innovation. Design/methodology/approach – Using survey data from 191 organizations in Pakistan, a structural equation model of the relationships between buyers’ and suppliers’ strategic focus on innovation, supplier innovation focus, collaborative innovation, and measures of product innovation and market performance is tested. In addition, hierarchical regression analysis is used to identify the impact of various organizational characteristics on product innovation performance. Originality/value – The study offers new insight into the role of inter-organizational collaboration as a driver of product innovation. Moreover, it adds to a limited literature on supply chain management in emerging economies generally, and on product innovation in the Indian sub-continent specifically. Findings – The results suggest that a firm’s product innovation performance is positively influenced by strategic buyer-supplier alignment with regard to product innovation, and the existence of mechanisms that foster inter-organizational collaboration. This in turn has a positive impact on market performance. Product innovation performance is also influenced by a firm’s age, the nature of its ownership, and the extent to which it exports its products

Supply Chain Strategy and the Role of Suppliers: Evidence from the Indian Sub-Continent

Supply chain strategy is widely recognized as being a crucial component of a broader corporate strategy. However, the relationships between a firm’s strategic supply chain focus, the tactical orientation of its suppliers, and the firm’s performance, are less well understood. Much of what is known is also based on developed country contexts. This study empirically examines relationships between a buying firm’s supply chain strategy and operational dimensions of its suppliers in a developing country context

The indirect effect of social responsibility standards on organizational performance in apparel supply chains: A developing country perspective

Drawing from social exchange theory, this paper proposes and empirically examines organizational citizenship behavior as a possible mechanism to explain the association between suppliers’ socially responsible behavior and organizational performance. Data were collected from companies in the apparel supply chain in Pakistan, a developing country. Findings show that social responsibility standards have a positive impact on organizational citizenship behavior which in turn positively impacts operational and quality performance. Further, a mediation relationship is shown. This research informs practitioners that social responsibility initiatives instigate deep-rooted changes promoting social-friendly behaviors impacting firm performance. Suggestions for future research are discussed.This accepted article is published as Muhammad Shakeel Sadiq Jajja, Muhammad Asif, Frank Montabon, Kamran Ali Chatha, The indirect effect of social responsibility standards on organizational performance in apparel supply chains: A developing country perspective. Transportation Research Part E: Logistics and Transportation Review. July 2020, 139; 101968. doi: 10.1016/j.tre.2020.101968. Posted with permission. </p

The indirect effect of social responsibility standards on organizational performance in apparel supply chains: A developing country perspective

Drawing from social exchange theory, this paper proposes and empirically examines organizational citizenship behavior as a possible mechanism to explain the association between suppliers’ socially responsible behavior and organizational performance. Data were collected from companies in the apparel supply chain in Pakistan, a developing country. Findings show that social responsibility standards have a positive impact on organizational citizenship behavior which in turn positively impacts operational and quality performance. Further, a mediation relationship is shown. This research informs practitioners that social responsibility initiatives instigate deep-rooted changes promoting social-friendly behaviors impacting firm performance. Suggestions for future research are discussed