The path of innovation: purchasing and supplier involvement into new product development

• Published in: Industrial marketing management Vol. 47; pp. 109 - 120
• Main Authors: Luzzini, Davide, Amann, Markus, Caniato, Federico, Essig, Michael, Ronchi, Stefano
• Format: Journal Article
• Language: English
• Published: New York Elsevier Inc 01.05.2015; Elsevier Sequoia S.A; Elsevier
• Subjects: Business administration; Collaboration; Empirical research; Humanities and Social Sciences; Innovation; Innovations; Knowledge management; Managers; Product development; Purchasing; Purchasing knowledge; Sourcing; Strategic sourcing; Studies; Supplier collaboration; Technological change; Technological uncertainty; Uncertainty; Strategic sourcing; Innovation; Purchasing knowledge; Supplier collaboration; Technological uncertainty
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/j.indmarman.2015.02.034

This paper aims to investigate the effects of supplier collaboration on the firm innovation performance as well as the enabling characteristics of the purchasing function. This is an original contribution as few papers empirically test the effect of supplier collaboration (meant as supplier involvement, development, and integration) on innovation performance and — simultaneously — the contribution of strategic sourcing activities and purchasing knowledge. Also, we explore the technological uncertainty of the purchase as an important contingent factor that might influence the firm's innovation strategy and the emphasis on supplier collaboration or strategic sourcing. Towards this end, we develop a theoretical framework and test it through a survey conducted on a sample of 498 companies worldwide. Results show that innovation, as a category priority, does lead to emphasize supplier collaboration and strategic sourcing which, in turn, ensure better innovation performance. Empirical evidence also shows that, on the one hand, adequate purchasing (managers) knowledge enables greater supplier collaboration and strategic sourcing; on the other hand, technological uncertainty put greater emphasis on innovation strategy as well as on strategic sourcing. •Suppliers greatly affect the firm innovation effort.•Purchasing is often a primary interface between the firm and its suppliers.•The study investigates suppliers' and purchasing contribution to the firm innovation performance.•The study shows that supplier collaboration and strategic sourcing improve the innovation performance.•Also, purchasing knowledge is an important enabler of supplier collaboration and strategic sourcing.