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Procurement Procedures For Supplier Integration And Open Innovation In Mature Industries

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  • DAVID RÖNNBERG SJÖDIN

    (Centre for Management of Innovation and Technology in Process Industry, Luleå University of Technology, 97187, Luleå, Sweden)

  • P. E. ERIKSSON

    (Centre for Management of Innovation and Technology in Process Industry, Luleå University of Technology, 97187, Luleå, Sweden)

Abstract

The development and installation of new process equipment in production plants typically require strong collaborative efforts by a process firm and its equipment suppliers. However, existing knowledge about how such supplier integration and open innovation practices should be organized and managed is scarce. The purpose of this investigation is therefore to explore how process firms can organize and manage supplier integration and open innovation practices when developing and installing new process technology. By means of a literature review and a case study of two process firms, a lifecycle perspective on procurement is adopted. Our results show that the process firms utilize different interconnected cooperative procurement procedures in different stages of the equipment's lifecycle, in order to enhance integration both in buyer-supplier dyads and among the suppliers in the project network. The contributions of the paper are summarized and illustrated in a developed lifecycle-based procurement model that guides practitioners in organizing and managing supplier integration and open innovation practices.

Suggested Citation

  • David Rönnberg Sjödin & P. E. Eriksson, 2010. "Procurement Procedures For Supplier Integration And Open Innovation In Mature Industries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(04), pages 655-682.
    • Handle: RePEc:wsi:ijimxx:v:14:y:2010:i:04:n:s1363919610002817
    DOI: 10.1142/S1363919610002817
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    Cited by:

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    2. David Sjödin, 2019. "Knowledge processing and ecosystem co-creation for process innovation: Managing joint knowledge processing in process innovation projects," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 135-162, March.
    3. Felix Homfeldt & Alexandra Rese & Hanno Brenner & Daniel Baier & Til Fabio Schäfer, 2017. "Identification And Generation Of Innovative Ideas In The Procurement Of The Automotive Industry: The Case Of Audi Ag," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(07), pages 1-31, October.
    4. Kamalaldin, Anmar & Sjödin, David & Hullova, Dusana & Parida, Vinit, 2021. "Configuring ecosystem strategies for digitally enabled process innovation: A framework for equipment suppliers in the process industries," Technovation, Elsevier, vol. 105(C).
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    6. Maximilian A. Maier & Peter Rück & Alexander Brem, 2017. "How to Integrate Suppliers into the Innovation Process? An Explorative Case of Champion Formalization in the Purchasing Department in Times of Open Innovation," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1-17, December.

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