Innovation generation in supply chain relationships: A conceptual model and research propositions

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, there is a dearth of research, both conceptual and empirical, focusing on innovation generation in buyer-seller relationships in supply chains. In an attempt to fill this void, this article develops a conceptual model of innovation generation in buyer-seller relationships in upstream supply chains. The authors propose that innovation generation in supply chain relationships, both incremental and radical, is a consequence of interactions between buyers and sellers. They also delineate factors internal and external to the relationship that moderate the link between interaction and innovation generation. Finally, the authors discuss managerial implications of their research and offer guidelines for future empirical research. Subroto Roy (sroy@newhaven.edu) (Ph.D., University of Western Sydney, 2002) is an assistant professor of marketing and international business at the University of New Haven since 2001. Prior to his Ph.D., he had more than 12 years of experience in packaging industry (Tetra Pak) marketing and sales. Involved with several upstream industrial new product development projects he helped clients launch more than 100 brands. Current research interests include global supply chains, technology adoption, and knowledge outsourcing. His work has appeared inAmerican Marketing Association Educators Conferences and is forthcoming inIndustrial Marketing Management, among others. He is a co-guest editor of a special issue of theJournal of Business and Industrial Marketing and has consulted with leading companies in Australia and Asia. See http://www.newhaven.edu/faculty/roy. K. Sivakumar (k.sivakumar@lehigh.edu) (Ph.D., Syracuse University, 1992) is the Arthur Tauck Professor of International Marketing & Logistics and a professor of marketing at Lehigh University. His research interests include pricing, global marketing, innovation management, and supply/value chain management. His research has been published in theJournal of the Academy of Marketing Science, theJournal of Marketing, theJournal of International Business Studies, Marketing Letters, theJournal of Business Research, International Marketing Review, Pricing Strategy & Practice: An International Journal, and other publications. He has won several awards for research. He is on the editorial board of six journals. Home page: www.lehigh.edu/~kasg. Ian F. Wilkinson (i.wilkinson@unsw.edu.au) is a professor in the School of Marketing at the University of New South Wales since 2001. His current research focuses on interfirm relations and networks in domestic and international markets and the dynamics and evolution of markets, including applications of complexity theory. His research has appeared in many journals including theJournal of the Academy of Marketing Science, theJournal of Business Research, theJournal of World Business, theJournal of International Marketing, theEuropean Journal of Marketing, Industrial Marketing Management, theJournal of Industrial and Business Marketing, and theJournal of Applied Psychology. He is on the editorial board of 12 scholarly journals. See http://www.marketing.unsw.edu.au/PEOPLE/HTML/IWilkinson.html.