IDEAS home Printed from https://ideas.repec.org/a/bla/popmgt/v26y2017i4p617-632.html
   My bibliography  Save this article

Using Value Chains to Enhance Innovation

Author

Listed:
  • Hau L. Lee
  • Glen Schmidt

Abstract

Past research (along with our experience) suggests that a firm's supply chain (i.e., value chain) plays an integral role in its ability to not only reduce cost via process innovation, but also in its ability to develop new products and services. Evidence suggests the value chain is playing an ever‐more‐important role, with greater prevalence of distributed product development (spanning geographic, organizational, or firm boundaries) and open innovation (performed outside the firm). We discuss some of the trends with regard to supplier and customer involvement in the innovation process, and summarize some of the research exploring the rationale behind those trends and the research offering advice on how firms can use external resources to further improve their innovation performance. We present a number of examples that illustrate some best practices.

Suggested Citation

  • Hau L. Lee & Glen Schmidt, 2017. "Using Value Chains to Enhance Innovation," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 617-632, April.
    • Handle: RePEc:bla:popmgt:v:26:y:2017:i:4:p:617-632
    DOI: 10.1111/poms.12665
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/poms.12665
    Download Restriction: no
    File URL: https://libkey.io/10.1111/poms.12665?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. Wenli Xiao & Cheryl Gaimon, 2013. "The Effect of Learning and Integration Investment on Manufacturing Outsourcing Decisions: A Game Theoretic Approach," Production and Operations Management, Production and Operations Management Society, vol. 22(6), pages 1576-1592, November.
    2. Anne Parmigiani, 2007. "Why do firms both make and buy? An investigation of concurrent sourcing," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 285-311, March.
    3. V. Krishnan & Karl T. Ulrich, 2001. "Product Development Decisions: A Review of the Literature," Management Science, INFORMS, vol. 47(1), pages 1-21, January.
    4. Edward G. Anderson Jr. & Geoffrey G. Parker, 2013. "Integration of Global Knowledge Networks," Production and Operations Management, Production and Operations Management Society, vol. 22(6), pages 1446-1463, November.
    5. Corey Billington & Rhoda Davidson, 2013. "Leveraging Open Innovation Using Intermediary Networks," Production and Operations Management, Production and Operations Management Society, vol. 22(6), pages 1464-1477, November.
    6. Corey Billington & Rhoda Davidson, 2013. "Leveraging Open Innovation Using Intermediary Networks," Post-Print hal-02312028, HAL.
    7. Ananth V. Iyer & Leroy B. Schwarz & Stefanos A. Zenios, 2005. "A Principal-Agent Model for Product Specification and Production," Management Science, INFORMS, vol. 51(1), pages 106-119, January.
    8. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, December.
    9. Ulrich, Karl, 1995. "The role of product architecture in the manufacturing firm," Research Policy, Elsevier, vol. 24(3), pages 419-440, May.
    10. Raul O. Chao & Stylianos Kavadias, 2008. "A Theoretical Framework for Managing the New Product Development Portfolio: When and How to Use Strategic Buckets," Management Science, INFORMS, vol. 54(5), pages 907-921, May.
    11. Laura J. Kornish & Jeremy Hutchison‐Krupat, 2017. "Research on Idea Generation and Selection: Implications for Management of Technology," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 633-651, April.
    12. Karan Girotra & Christian Terwiesch & Karl T. Ulrich, 2010. "Idea Generation and the Quality of the Best Idea," Management Science, INFORMS, vol. 56(4), pages 591-605, April.
    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. Shen, Bin & Xu, Xiaoyan & Chan, Hau Ling & Choi, Tsan-Ming, 2021. "Collaborative innovation in supply chain systems: Value creation and leadership structure," International Journal of Production Economics, Elsevier, vol. 235(C).
    2. Ghamat, Salar & Pun, Hubert & Critchley, Greg & Hou, Pengwen, 2021. "Using intellectual property agreements in the presence of supplier and third-party copycatting," European Journal of Operational Research, Elsevier, vol. 291(2), pages 680-692.
    3. Afshari, Hamid & Searcy, Cory & Jaber, Mohamad Y., 2020. "The role of eco-innovation drivers in promoting additive manufacturing in supply chains," International Journal of Production Economics, Elsevier, vol. 223(C).
    4. Mengli Fan & Yi Huang & Wei Xing, 2022. "Information Acquisition for Product Design in a Green Supply Chain," Mathematics, MDPI, vol. 10(7), pages 1-16, April.
    5. Cheryl Gaimon & Manpreet Hora & Karthik Ramachandran, 2017. "Towards Building Multidisciplinary Knowledge on Management of Technology: An Introduction to the Special Issue," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 567-578, April.
    6. Robert Walasek & Nina Stepnicka & Adam Lulek, 2021. "Technological Innovation and Risk in the Management of Integrated Supply Chains – A Survey Results," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 479-492.
    7. Rubén Michael Rodríguez‐González & Gonzalo Maldonado‐Guzman & Antonia Madrid‐Guijarro, 2022. "The effect of green strategies and eco‐innovation on Mexican automotive industry sustainable and financial performance: Sustainable supply chains as a mediating variable," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 779-794, July.
    8. Cheryl Gaimon & Janice Carrillo, 2022. "Successful innovation and the alignment of knowledge workers at the executive, management, and technical specialist levels," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4589-4598, December.
    9. Jung, Se-Youn & Huh, Woonghee Tim & Park, Kun Soo, 2022. "Impact of the arm’s length regulation on a supply chain with asymmetric retailers," European Journal of Operational Research, Elsevier, vol. 300(3), pages 865-883.
    10. Malacina, Iryna & Teplov, Roman, 2022. "Supply chain innovation research: A bibliometric network analysis and literature review," International Journal of Production Economics, Elsevier, vol. 251(C).
    11. Charles H. Fine & Loredana Padurean & Sergey Naumov, 2022. "Operations for entrepreneurs: Can Operations Management make a difference in entrepreneurial theory and practice?," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4599-4615, December.
    12. Cheryl Gaimon & Karthik Ramachandran, 2021. "The Knowledge Value Chain: An Operational Perspective," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 715-724, March.

    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. Mohsen Jafari Songhori & Madjid Tavana & Takao Terano, 2020. "Product development team formation: effects of organizational- and product-related factors," Computational and Mathematical Organization Theory, Springer, vol. 26(1), pages 88-122, March.
    2. Simge Tuna & Stefano Brusoni & Anja Schulze, 2019. "Architectural knowledge generation: evidence from a field study," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(5), pages 977-1009.
    3. Rahul Kapoor, 2013. "Persistence of Integration in the Face of Specialization: How Firms Navigated the Winds of Disintegration and Shaped the Architecture of the Semiconductor Industry," Organization Science, INFORMS, vol. 24(4), pages 1195-1213, August.
    4. Fabrizio Salvador & Juan Pablo Madiedo, 2021. "Enabling Globally Distributed Projects: Effects of Project Interface Match and Related Technical Experience," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 1052-1081, April.
    5. Tian Heong Chan & Haibo Liu & Steffen Keck & Wenjie Tang, 2023. "When do teams generate valuable inventions? The moderating role of invention integrality on the effects of expertise similarity, network cohesion, and gender diversity," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1760-1777, June.
    6. Morita, Hodaka & Nakajima, Kentaro & Tsuru, Tsuyoshi, 2017. "Product Architecture and Intra-Firm Coordination: Theory and Evidence," Discussion Paper Series 659, Institute of Economic Research, Hitotsubashi University.
    7. Ali A. Yassine & Luke A. Wissmann, 2007. "The Implications of Product Architecture on the Firm," Systems Engineering, John Wiley & Sons, vol. 10(2), pages 118-137, June.
    8. Ravi Srinivasan & Adrian Choo & Sriram Narayanan & Soumodip Sarkar & Antti Tenhiälä, 2021. "Knowledge sources, innovation objectives, and their impact on innovation performance: Quasi‐replication of Leiponen and Helfat (2010)," Strategic Management Journal, Wiley Blackwell, vol. 42(11), pages 2104-2136, November.
    9. Manuel E. Sosa & Steven D. Eppinger & Craig M. Rowles, 2004. "The Misalignment of Product Architecture and Organizational Structure in Complex Product Development," Management Science, INFORMS, vol. 50(12), pages 1674-1689, December.
    10. Tian Heong Chan & Shi-Ying Lim, 2023. "The Emergence of Novel Product Uses: An Investigation of Exaptations in IKEA Hacks," Management Science, INFORMS, vol. 69(5), pages 2870-2892, May.
    11. Wallace J. Hopp & Xiaowei Xu, 2005. "Product Line Selection and Pricing with Modularity in Design," Manufacturing & Service Operations Management, INFORMS, vol. 7(3), pages 172-187, August.
    12. Bent Flyvbjerg & Alexander Budzier & Jong Seok Lee & Mark Keil & Daniel Lunn & Dirk W. Bester, 2022. "The Empirical Reality of IT Project Cost Overruns: Discovering A Power-Law Distribution," Papers 2210.01573, arXiv.org.
    13. Glenn Hoetker & Anand Swaminathan & Will Mitchell, 2007. "Modularity and the Impact of Buyer-Supplier Relationships on the Survival of Suppliers," Management Science, INFORMS, vol. 53(2), pages 178-191, February.
    14. Barry L. Bayus, 2013. "Crowdsourcing New Product Ideas over Time: An Analysis of the Dell IdeaStorm Community," Management Science, INFORMS, vol. 59(1), pages 226-244, June.
    15. Gianluigi Giustiziero & Tobias Kretschmer & Deepak Somaya & Brian Wu, 2023. "Hyperspecialization and hyperscaling: A resource‐based theory of the digital firm," Strategic Management Journal, Wiley Blackwell, vol. 44(6), pages 1391-1424, June.
    16. Vincent FRIGANT & Stéphanie PERES & Stéphane VIROL, 2012. "How do SMEs to rise at the top of the supply chain? An econometric exploration of the French auto industry (In French)," Cahiers du GREThA (2007-2019) 2012-16, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    17. Murmann, Johann Peter & Frenken, Koen, 2006. "Toward a systematic framework for research on dominant designs, technological innovations, and industrial change," Research Policy, Elsevier, vol. 35(7), pages 925-952, September.
    18. Panos Constantinides & Ola Henfridsson & Geoffrey G. Parker, 2018. "Introduction—Platforms and Infrastructures in the Digital Age," Information Systems Research, INFORMS, vol. 29(2), pages 381-400, June.
    19. Fixson, Sebastian K. & Park, Jin-Kyu, 2008. "The power of integrality: Linkages between product architecture, innovation, and industry structure," Research Policy, Elsevier, vol. 37(8), pages 1296-1316, September.
    20. Hossain, Mokter, 2018. "Motivations, challenges, and opportunities of successful solvers on an innovation intermediary platform," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 67-73.

    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:popmgt:v:26:y:2017:i:4:p:617-632. 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://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1937-5956 .

    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.