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How does a component from a supplier with high reputation for product innovation improve the perception of a final offering? A process perspective

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  • Linder, Christian
  • Seidenstricker, Sven

Abstract

An excellent reputation for product innovation (RPI) is an intangible asset for any company and promises a sustainable competitive advantage. This study empirically analyzes the spillover effects of a high component supplier's RPI to the offering of the original equipment manufacturer (OEM). The results show that there are positive effects to be gained from the innovativeness of a component supplier, which increases the perceived performance of the final offering containing the supplier's product. In addition, the study demonstrates that such a strategic partnership between a component supplier and an OEM has the potential to influence the purchase intention of the final consumer in a positive manner, thereby creating value for both parties. Contributions are made to a better understanding of strategic options for such a partnership and to an on-going discussion on RPI and the importance of intangible attributes in innovation management.

Suggested Citation

  • Linder, Christian & Seidenstricker, Sven, 2018. "How does a component from a supplier with high reputation for product innovation improve the perception of a final offering? A process perspective," European Management Journal, Elsevier, vol. 36(2), pages 288-299.
    • Handle: RePEc:eee:eurman:v:36:y:2018:i:2:p:288-299
    DOI: 10.1016/j.emj.2017.05.003
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    Cited by:

    1. Peiya Zhu & Xiaofei Qian & Xinbao Liu & Shaojun Lu, 2021. "Pricing decisions under manufacturer's component open-supply strategy," Papers 2102.10280, arXiv.org, revised Mar 2021.
    2. Linder, Christian, 2019. "Customer orientation and operations: The role of manufacturing capabilities in small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 216(C), pages 105-117.
    3. Sima Sabahi & Mahour M. Parast, 2023. "An operations and supply chain management perspective to product innovation," Operations Management Research, Springer, vol. 16(2), pages 808-829, June.
    4. Esra Boz & Sinan Çizmecioğlu & Ahmet Çalık, 2022. "A Novel MDCM Approach for Sustainable Supplier Selection in Healthcare System in the Era of Logistics 4.0," Sustainability, MDPI, vol. 14(21), pages 1-19, October.

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