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Relationship-based product innovations: Evidence from the global supply chain

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  • Jean, Ruey Jer “Bryan”
  • Kim, Daekwan
  • Bello, Daniel C.

Abstract

Global supply chains offer a range of expertise to suppliers interested in generating innovative new products through capitalizing on the closeness of their working relationships with other firms. However, current knowledge on whether and how relational capital between firms can be leveraged for innovation is equivocal, conceptualizing little of the underlying processes responsible for mobilizing relational capital, as well as yielding mostly contradictory empirical results. This study proposes and tests the intermediate mechanisms of proactive customer orientation and joint learning capability as two distinctive capabilities that may account for how relational capital drives relationship-based innovation. Our conceptual model posits that the relational capital–innovation link is neither simple nor direct. An empirical test on 204 Taiwanese suppliers demonstrates the complexity of the innovation generation process. Two pathways from relational capital to innovation are revealed: joint learning capability fully mediates the link, whereas the role of proactive customer orientation is moderated by aspects of the suppliers' ties to their international customers; our theory is thereby largely confirmed. Finally, implications for the theory and practice of innovation in global supply chain relationships are drawn.

Suggested Citation

  • Jean, Ruey Jer “Bryan” & Kim, Daekwan & Bello, Daniel C., 2017. "Relationship-based product innovations: Evidence from the global supply chain," Journal of Business Research, Elsevier, vol. 80(C), pages 127-140.
    • Handle: RePEc:eee:jbrese:v:80:y:2017:i:c:p:127-140
    DOI: 10.1016/j.jbusres.2017.07.008
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    6. Ying Guo & LiFang Wang & Yanyu Chen, 2020. "Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning," SAGE Open, , vol. 10(1), pages 21582440198, January.
    7. Jean, Ruey-Jer Bryan & Kim, Daekwan & Chiou, Jyh-She & Calantone, Roger, 2018. "Strategic orientations, joint learning, and innovation generation in international customer-supplier relationships," International Business Review, Elsevier, vol. 27(4), pages 838-851.
    8. Carli Lorenzini, Giana & Mostaghel, Rana & Hellström, Daniel, 2018. "Drivers of pharmaceutical packaging innovation: A customer-supplier relationship case study," Journal of Business Research, Elsevier, vol. 88(C), pages 363-370.
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    10. Jorge Luis García-Alcaraz & Arturo Realyvasquez-Vargas & Pedro García-Alcaraz & Mercedes Pérez de la Parte & Julio Blanco Fernández & Emilio Jiménez Macias, 2019. "Effects of Human Factors and Lean Techniques on Just in Time Benefits," Sustainability, MDPI, vol. 11(7), pages 1-20, March.
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