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Supplier cluster characteristics and innovation outcomes

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  • Ganesh Pillai, Rajani
  • Bindroo, Vishal

Abstract

The role of suppliers in firms’ innovation processes is well established. Yet understanding of the effect of supplier clusters and their characteristics on firms’ innovation outcomes is lacking. This paper focuses on two important characteristics of supplier clusters—supplier cluster proximity and supplier cluster heterogeneity—and examines their impact on the speed to market of innovations and the type of innovations produced. Using a multi-country dataset, the study shows that supplier proximity improves speed to market of innovations and that greater heterogeneity among supplier clusters decreases the rate of radical innovations of firms. Through a nuanced view of supplier clusters, this research contributes to the literature on clusters and innovations by highlighting the role of supplier clusters.

Suggested Citation

  • Ganesh Pillai, Rajani & Bindroo, Vishal, 2020. "Supplier cluster characteristics and innovation outcomes," Journal of Business Research, Elsevier, vol. 112(C), pages 576-583.
    • Handle: RePEc:eee:jbrese:v:112:y:2020:i:c:p:576-583
    DOI: 10.1016/j.jbusres.2019.11.023
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    Cited by:

    1. Xiong, Yurong & Wu, Haomin & Ding, Xin & Wu, Ji (George), 2023. "Supplier geographical concentration and corporate innovation," Finance Research Letters, Elsevier, vol. 56(C).

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