IDEAS home Printed from https://ideas.repec.org/a/bla/jscmgt/v58y2022i1p92-123.html
   My bibliography  Save this article

Fostering SME supplier‐enabled innovation in the supply chain: The role of innovation policy

Author

Listed:
  • Kostas Selviaridis
  • Martin Spring

Abstract

Buying organizations collaborate with their suppliers to innovate, and increasingly seek to tap into the innovation potential of technologically adept small and medium‐sized enterprises (SMEs) who are new to them. Engagement with technology‐based SMEs as possible suppliers can be constrained by institutions (e.g., rules, regulations, and norms of conduct) embodied in the buying organization's procurement and supply chain strategy, processes, and practices. Although prior research has examined how institutional forces influence supplier‐enabled innovation, little is known about institutional failures that are particularly germane to innovative SMEs and impede collaboration between these SMEs and buying organizations. Consistent with the focus of the second emerging discourse incubator (EDI) on researching the effects of institutions (e.g., regulations) and public policies on supply chains, we investigate how enacted innovation policies address SME‐specific institutional failures in a public sector context, that of the English National Health Service (NHS). Our qualitative research reveals that public agencies responsible for policy enactment seek to promote SME supplier‐enabled innovation in the supply chain through institutional change and mitigation, SME connectivity to supply chain actors, and SME supplier development support. We synthesize our findings into a research model and set of propositions which theorize on the specific mechanisms underpinning the interventions of policy‐enacting agencies and their effects. Our study contributes to the literature on supplier‐enabled innovation and to research focusing on collaboration between buyers and innovative small suppliers. More broadly, we generate theoretical insights regarding the role of public agencies enacting policy as a class of non‐firm actors whose interventions influence the supply chain. The findings also add to our understanding of the interplay between supply chains and institutions.

Suggested Citation

  • Kostas Selviaridis & Martin Spring, 2022. "Fostering SME supplier‐enabled innovation in the supply chain: The role of innovation policy," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(1), pages 92-123, January.
    • Handle: RePEc:bla:jscmgt:v:58:y:2022:i:1:p:92-123
    DOI: 10.1111/jscm.12274
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jscm.12274
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jscm.12274?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Joshua R. Bruce & John M. de Figueiredo & Brian S. Silverman, 2019. "Public contracting for private innovation: Government capabilities, decision rights, and performance outcomes," Strategic Management Journal, Wiley Blackwell, vol. 40(4), pages 533-555, April.
    2. Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), 2015. "Public Procurement for Innovation," Books, Edward Elgar Publishing, number 15642.
    3. Alison L. Olechowski & Steven D. Eppinger & Nitin Joglekar & Katharina Tomaschek, 2020. "Technology readiness levels: Shortcomings and improvement opportunities," Systems Engineering, John Wiley & Sons, vol. 23(4), pages 395-408, July.
    4. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    5. David Dobrzykowski, 2019. "Understanding the Downstream Healthcare Supply Chain: Unpacking Regulatory and Industry Characteristics," Journal of Supply Chain Management, Institute for Supply Management, vol. 55(2), pages 26-46, April.
    6. Travis Tokar & Morgan Swink, 2019. "Public Policy and Supply Chain Management: Using Shared Foundational Principles to Improve Formulation, Implementation, and Evaluation," Journal of Supply Chain Management, Institute for Supply Management, vol. 55(2), pages 68-79, April.
    7. Thomas Johnsen, 2009. "Supplier involvement in new product development and innovation: Taking stock and looking to the future," Post-Print hal-00771091, HAL.
    8. Jakob Edler & Jan Fagerberg, 2017. "Innovation policy: what, why, and how," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(1), pages 2-23.
    9. Ruey-Jer ‘Bryan’ Jean & Rudolf R. Sinkovics & Stefan Zagelmeyer, 2018. "Antecedents and Innovation Performance Implications of MNC Political Ties in the Chinese Automotive Supply Chain," Management International Review, Springer, vol. 58(6), pages 995-1026, December.
    10. Robert Suurmond & Finn Wynstra & Jan Dul, 2020. "Unraveling the Dimensions of Supplier Involvement and their Effects on NPD Performance: A Meta‐Analysis," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(3), pages 26-46, July.
    11. Alvarez, Sharon A. & Barney, Jay B., 2004. "Organizing rent generation and appropriation: toward a theory of the entrepreneurial firm," Journal of Business Venturing, Elsevier, vol. 19(5), pages 621-635, September.
    12. Christine Harland & Jan Telgen & Guy Callender & Rick Grimm & Andrea Patrucco, 2019. "Implementing Government Policy in Supply Chains: An International Coproduction Study of Public Procurement," Journal of Supply Chain Management, Institute for Supply Management, vol. 55(2), pages 6-25, April.
    13. Thomas J. Kull & Josip Kotlar & Martin Spring, 2018. "Small and Medium Enterprise Research in Supply Chain Management: The Case for Single†Respondent Research Designs," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(1), pages 23-34, January.
    14. Dodgson, Mark & Hughes, Alan & Foster, John & Metcalfe, Stan, 2011. "Systems thinking, market failure, and the development of innovation policy: The case of Australia," Research Policy, Elsevier, vol. 40(9), pages 1145-1156.
    15. Legenvre, Hervé & Gualandris, Jury, 2018. "Innovation sourcing excellence: Three purchasing capabilities for success," Business Horizons, Elsevier, vol. 61(1), pages 95-106.
    16. Brian Fugate & Mark Pagell & Barbara Flynn, 2019. "From the Editors: Introduction to the Emerging Discourse Incubator on the Topic of Research at the Intersection of Supply Chain Management and Public Policy and Government Regulation," Journal of Supply Chain Management, Institute for Supply Management, vol. 55(2), pages 3-5, April.
    17. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    18. Beth Davis†Sramek & Brian S. Fugate & Jason Miller & Richard Germain & Alexei Izyumov & Konstantin Krotov, 2017. "Understanding the Present by Examining the Past: Imprinting Effects On Supply Chain Outsourcing in a Transition Economy," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(1), pages 65-86, January.
    19. Craig R. Carter & Dale S. Rogers & Thomas Y. Choi, 2015. "Toward the Theory of the Supply Chain," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(2), pages 89-97, April.
    20. Boris W. Zaremba & Christoph Bode & Stephan M. Wagner, 2017. "New Venture Partnering Capability: An Empirical Investigation into How Buying Firms Effectively Leverage the Potential of Innovative New Ventures," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(1), pages 41-64, January.
    21. Dubois, Anna & Gadde, Lars-Erik, 2002. "Systematic combining: an abductive approach to case research," Journal of Business Research, Elsevier, vol. 55(7), pages 553-560, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schneider, Sebastian & Reiff, Annika & Schlömer-Laufen, Nadine, 2023. "Mittelstandsfreundliche Gestaltung von öffentlichen Ausschreibungen," IfM-Materialien 301, Institut für Mittelstandsforschung (IfM) Bonn.
    2. Selviaridis, Kostas & Hughes, Alan & Spring, Martin, 2023. "Facilitating public procurement of innovation in the UK defence and health sectors: Innovation intermediaries as institutional entrepreneurs," Research Policy, Elsevier, vol. 52(2).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David E. Cantor & Tingting Yan & Mark Pagell & Wendy L. Tate, 2022. "From the editors: Introduction to the emerging discourse incubator on the topic of leveraging multiple types of resources within the supply network for competitive advantage," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(2), pages 3-7, April.
    2. Jessica L. Darby & David J. Ketchen & Brent D. Williams & Travis Tokar, 2020. "The Implications of Firm‐Specific Policy Risk, Policy Uncertainty, and Industry Factors for Inventory: A Resource Dependence Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 3-24, October.
    3. Ioanna Kastelli & Lukasz Mamica & Keun Lee, 2023. "New perspectives and issues in industrial policy for sustainable development: from developmental and entrepreneurial to environmental state," Review of Evolutionary Political Economy, Springer, vol. 4(1), pages 1-25, April.
    4. Grashof, Nils, 2020. "Putting the watering can away Towards a targeted (problem-oriented) cluster policy framework," Papers in Innovation Studies 2020/4, Lund University, CIRCLE - Centre for Innovation Research.
    5. Jason Miller & Keith Skowronski & John Saldanha, 2022. "Asset ownership & incentives to undertake non‐contractible actions: The case of trucking," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(1), pages 65-91, January.
    6. Jan Fagerberg & Gernot Hutschenreiter, 2020. "Coping with Societal Challenges: Lessons for Innovation Policy Governance," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 279-305, June.
    7. Veldhuizen, Caroline, 2021. "Conceptualising the foundations of sustainability focused innovation policy: From constructivism to holism," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    8. Xiaoran Zheng & Yuzhuo Cai, 2022. "Transforming Innovation Systems into Innovation Ecosystems: The Role of Public Policy," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    9. Garrido-Prada, Pablo & Lenihan, Helena & Doran, Justin & Rammer, Christian & Perez-Alaniz, Mauricio, 2021. "Driving the circular economy through public environmental and energy R&D: Evidence from SMEs in the European Union," Ecological Economics, Elsevier, vol. 182(C).
    10. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).
    11. Phares, Jonathan & Dobrzykowski, David D. & Prohofsky, Jodi, 2021. "How policy is shaping the macro healthcare delivery supply chain: The emergence of a new tier of retail medical clinics," Business Horizons, Elsevier, vol. 64(3), pages 333-345.
    12. Jon Mikel Zabala-Iturriagagoitia, 2022. "Fostering regional innovation, entrepreneurship and growth through public procurement," Small Business Economics, Springer, vol. 58(2), pages 1205-1222, February.
    13. Fagerberg, Jan, 2018. "Mobilizing innovation for sustainability transitions: A comment on transformative innovation policy," Research Policy, Elsevier, vol. 47(9), pages 1568-1576.
    14. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2020. "Functional procurement for innovation, welfare and the environment," Papers in Innovation Studies 2020/1, Lund University, CIRCLE - Centre for Innovation Research, revised 19 Jul 2020.
    15. Oh, Jaeyoung & In, Joonhwan, 2023. "Supplier involvement and supplier performance in new product development: Moderating effects of supplier salesperson behaviors," Journal of Business Research, Elsevier, vol. 161(C).
    16. Xiaozhen Wang & Ki-Hyun Um & Shu Wang & Mingu Kang, 2023. "The mediating role of key supplier adaptability and involvement in the relationship between supplier relationship management and NPD project success," Operations Management Research, Springer, vol. 16(2), pages 794-807, June.
    17. Joanna Stryjek, 2021. "Counteracting the COVID-19 Crisis with Innovation Policy Tools: A Case Study of the EU’s Supranational Innovation Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 450-468.
    18. Calderini, Mario & Fia, Magali & Gerli, Francesco, 2023. "Organizing for transformative innovation policies: The role of social enterprises. Theoretical insights and evidence from Italy," Research Policy, Elsevier, vol. 52(7).
    19. Thomas Johnsen & Marie-Anne Le Dain & Nadine Kiratli & Holger Schiele, 2022. "Editorial: Purchasing and innovation: Past, present and future of the field of research," Post-Print hal-03761525, HAL.
    20. Laplane, Andrea & Mazzucato, Mariana, 2020. "Socializing the risks and rewards of public investments: Economic, policy, and legal issues," Research Policy, Elsevier, vol. 49(S).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jscmgt:v:58:y:2022:i:1:p:92-123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1523-2409 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.