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Getting Innovations Out of the Supplier Networks
Abstract:Current research on purchasing is very much characterized by an interest in relationships. The earlier emphasis (within research as well as among practitioners) on the independence of the buying company-on handling suppliers at arm's length-has gradually been replaced by a more "cooperative" approach. Suppliers are generally more looked upon as external resources, which can be more efficiently used within the frame of close and long-term relationships. A corresponding interest for relationships can be found within research on technical development. There is an emphasis on the importance of relating their own development activities to the development of important counterparts and several studies point to the advantages of technical cooperation. The topic of this article thus involves two different, but in many aspects closely related problem areas, i.e., purchasing and innovation, and in order to treat them in an integrated way and to handle the connections that exist between them we use a network approach. The article is based upon two types of empirical data regarding corporate collaboration in technical development. First, material from a cross-sectional study is used to describe some general characteristics of innovative relationships. Secondly, there are two case studies which illustrate the situation where a buying company tries to combine several relationships in a development project. There are a number of opportunities and problems facing a company which tries to involve its suppliers in technical development, and this article puts forward four key issues concerning the handling of cooperative development processes: the problem of choosing partners as well as of trying to interest and engage those chosen; the problem of synchronization, in technical and other dimensions, of the actors involved in the development process; the problem of timing within and between various relationships; and, as there will always be some resistance to technical change within an industrial network structure, there must also be a mobilization of forces in favour of the development. In conclusion, a penetration of the four key issues in light of the empirical findings gives rise to some managerial implications regarding the use of network relationships in technical development.
Keywords:Industrial networks  network management  business relationships
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