Several inherent limitations should be considered regarding the results of this study. First, supplier innovation was measured using subjective measurements, and focused only on radical innovation. Future studies should also include objective measures of supplier innovation, such as patents or number of new products development. In addition, previous studies have shown that different conceptualizations may have various antecedents and outcomes. Hence, future research could examine other innovation types, such as incremental versus radical innovation or
technological versus administrative innovation, and identify their antecedents and performance outcomes in the supply chain. For example, Jansen et al. (2006) developed and tested a model of antecedents, moderators, and performance outcomes of exploratory and exploitative innovation in the intra-organizational context.
In addition, this study tested only the moderating effects of dependence and supplier design responsibility on the drivers and outcomes of innovation. Future research should explore other moderators, such as the cultural differences among international exchange partners engaged in supply chain relationships (Rosenbusch, Brinckmann, and Bausch 2011).
For methodology, this study relies on data collected from Taiwanese OEM suppliers.
Because of the limited scope of this sample, generalizing our findings to other international customer–supplier relationships is difficult, especially in other industrial contexts. Future research should consider obtaining data from other industries from both the customers and their suppliers to cross-check the validity of our proposed model. This may prove challenging because
the identity of customers is sensitive in these types of international relationships. Overcoming these obstacles would contribute to the thorough understanding of innovation generation in glboal supply chains. Another limitation of this study is its cross-sectional design. Although the results of this study reveal the drivers and performance outcomes of supplier innovation
generation, their causality can only be implied. Future studies could overcome this limitation by using experiments or longitudinal data collection, although such studies might only be possible for relatively short periods.
REFERENCES
Acquaah, Moses (2007), "Managerial Social Capital, Strategic Orientation, and Organizational Performance in an Emerging Economy," Strategic Management Journal, 28 (12), 1235-1255.
Anderson, James C. and David W. Gerbing (1988), "Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach," Psychological Bulletin, 103 (3), 411-423.
Armstrong, J. Scott and Terry S. Overton (1977), "Estimating Nonresponse Bias in Mail Surveys,"
Journal of Marketing Research, 14 (3), 396-402.
Atuahene-Gima, Kwaku (2005), "Resolving the Capability-Rigidity Paradox in New Product Innovation," Journal of marketing, 69 (4), 61-83.
Atuahene-Gima, Kwaku, Stanley F. Slater, and Eric M. Olson (2005), "The Contingent Value of Responsive and Proactive Market Orientations for New Product Program Performance*,"
Journal of Product Innovation Management, 22 (6), 464-482.
Azadegan, Arash and Kevin J. Dooley (2010), "Supplier Innovativeness, Organizational Learning Styles and Manufacturer Performance: An Empirical Assessment," Journal of Operations Management, 28 (6), 488-505.
Azadegan, Arash, Kevin J. Dooley, Phillip L. Carter, and Joseph R. Carter (2008), "Supplier Innovativeness and the Role of Interorganizational Learning in Enhancing Manufacturer Capabilities," Journal of Supply Chain Management, 44 (4), 14-35.
Bagozzi, Richard P. and Youjae Yi (1988), "On the Evaluation of Structural Equation Models,"
Journal of the Academy of Marketing Science, 16 (1), 74-94.
Barney, Jay B. (1991), "Firm Resources and Sustained Competitive Advantage," Journal of Management, 17 (1), 99-121.
Baron, Reuben and David Kenny (1986), "The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations," Journal of Personality and Social Psychology, 51 (6), 1173-82.
Bentler, Peter M. (2005), Eqs 6 Structural Equations Program Manual. Encino, CA: Multivariate Software Inc.
Bentler, Peter M. and Chih-Ping Chou (1987), "Practical Issues in Structural Modeling,"
Sociological Methods Research, 16 (1), 78-117.
Blocker, Christopher, Daniel Flint, Matthew Myers, and Stanley Slater (2011), "Proactive Customer Orientation and Its Role for Creating Customer Value in Global Markets,"
Journal of the Academy of Marketing Science, 39 (2), 216-233.
Bollen, Kenneth A. (1989), Structural Equations with Latent Variables. New York: John Wiley &
Sons.
Chandy, Rajesh K. and Gerard J. Tellis (1998), "Organizing for Radical Product Innovation: The Overlooked Role of Willingness to Cannibalize," Journal of Marketing Research (JMR), 35 (4), 474-487.
Chang, Woojung, George R. Franke, Timothy D. Butler, Carolyn F. Musgrove, and Alexander E.
Ellinger (2014), "Differential Mediating Effects of Radical and Incremental Innovation on Market Orientation-Performance Relationship: A Meta-Analysis," Journal of Marketing Theory & Practice, 22 (3), 235-250.
Cheung, Mee-Shew, Matthew B. Myers, and John T. Mentzer (2010), "Does Relationship Learning Lead to Relationship Value? A Cross-National Supply Chain Investigation,"
Journal of Operations Management, 28 (6), 472-487.
Corine S. Noordhoff, Kyriakos Kyriakopoulos, Christine Moorman, Pieter Pauwels, and Benedict G.C. Dellaert (2011), "The Bright Side and Dark Side of Embedded Ties in
Business-to-Business Innovation," Journal of Marketing, 75 (5), 34-52.
Cuevas-Rodríguez, Gloria, Carmen Cabello-Medina, and Antonio Carmona-Lavado (2014),
"Internal and External Social Capital for Radical Product Innovation: Do They Always Work Well Together?," British Journal of Management, 25 (2), 266-284.
Davis, Donna F. and Susan L. Golicic (2009), "Gaining Comparative Advantage in Supply Chain Relationships: The Mediating Role of Market-Oriented It Competence," Journal of the Academy of Marketing Science, forthcoming, doi:10.1007/s11747-008-0127-8.
Dedrick, Jason, Kenneth L. Kraemer, and Greg Linden (2010), "Who Profits from Innovation in Global Value Chains?: A Study of the Ipod and Notebook Pcs," Industrial and Corporate Change, 19 (1), 81-116.
Dedrick, Jason, Kenneth L. Kraemer, Greg Linden, Clair Brown, and Tom Murtha (2007), Organizing Global Knowledge Networks in the Electronics Industry. Irvine, CA: Personal Computing Industry Center.
Dillman, Don A. (2000), Mail and Internet Surveys: The Tailored Design Method. New York, NY:
John Wiley & Sons.
Doz, Yves L. and Keeley Wilson (2012), Managing Global Innovation: Frameworks for
Integrating Capabilities around the World: Boston, MA: Harvard Business Review Press.
Dyer, Jeffrey H. and Harbir Singh (1998), "The Relational View: Cooperative Strategy and Sources of Inteorganizational Competitive Advantage," Academy of Management Review, 23 (4), 660-679.
Easterby-Smith, Mark, Marjorie A. Lyles, and Eric W. K. Tsang (2008), "Inter-Organizational Knowledge Transfer: Current Themes and Future Prospects," Journal of Management Studies, 45 (4), 677-690.
Eisenhardt, K. M. and J. A. Martin (2000), "Dynamic Capabilities: What Are They?," Strategic Management Journal, 21 (10-11), 1105-1121.
Fang, Eric (2008), "Customer Participation and the Trade-Off between New Product Innovativeness and Speed to Market," Journal of Marketing, 72 (4), 90-104.
Fang, Eric (Er) and Shaoming Zou (2009), "Antecedents and Consequences of Marketing Dynamic Capabilities in International Joint Ventures," Journal of International Business Studies, 40 (5), 742-761.
Fang, Eric and Shaoming Zou (2010), "The Effects of Absorptive and Joint Learning on the Instability of International Joint Ventures in Emerging Economies," Journal of International Business Studies, 41 (5), 906-924.
Fornell, Claes and David F. Larcker (1981), "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error," Journal of Marketing Research, 18 (1), 39-50.
Gatignon, Hubert and Jean-Marc Xuereb (1997), "Strategic Orientation of the Firm and New Product Performance," Journal of Marketing Research, 34 (1), 77-90.
Gerbing, David W. and James C. Anderson (1988), "An Undated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment," Journal of Marketing Research, 25 (2), 186-192.
Grant, Robert M. (1996), "Toward a Knowledge-Based Theory of the Firm," Strategic Management Journal, 17 (Winter Special Issue), 109-122.
Griffin, Abbie, BrettW Josephson, Gary Lilien, Fred Wiersema, Barry Bayus, Rajesh Chandy, Ely Dahan, Steve Gaskin, Ajay Kohli, Christopher Miller, Ralph Oliva, and Jelena Spanjol (2013), "Marketing’s Roles in Innovation in Business-to-Business Firms: Status, Issues, and Research Agenda," Marketing Letters, 24 (4), 323-337.
Grinstein, Amir (2008), "The Effect of Market Orientation and Its Components on Innovation Consequences: A Meta-Analysis," Journal of the Academy of Marketing Science, 36 (2), 166-173.
Han, Jin K., Namwoon Kim, and Rajendra K. Srivastava (1998), "Market Orientation and
Organizational Performance: Is Innovation a Missing Link?," Journal of Marketing, 62 (4), 30-45.
Henke, John W. Jr. and Chun Zhang (2010), "Increasing Supplier-Driven Innovation," Sloan Management Review, 51 (2), 41-46.
Hu, Li-tze and Peter M. Bentler (1999), "Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria Versus New Alternatives," Structural Equation Modeling:
A Multidisciplinary Journal, 6 (1), 1-55.
Inkpen, Andrew C. and Eric W. K. Tsang (2005), "Social Capital, Networks, and Knowledge Transfer," The Academy of Management Review, 30 (1), 146-165.
Jansen, Justin J. P., Frans A. J. Van Den Bosch, and Henk W. Volberda (2006), "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational
Antecedents and Environmental Moderators," Management Science, 52 (11), 1661-1674.
Jean, Ruey-Jer 'Bryan', Rudolf R. Sinkovics, and S. Tamer Cavusgil (2010), "Enhancing
International Customer-Supplier Relationships through It Resources: A Study of Taiwanese Electronics Suppliers," Journal of International Business Studies, 41 (7), 1218-1239.
Jean, Ruey-Jer “Bryan", Rudolf R. Sinkovics, and Daekwan Kim (2010), "Drivers and Performance Outcomes of Relationship Learning for Suppliers in Cross-Border Customer–Supplier Relationships: The Role of Communication Culture," Journal of International Marketing, 18 (1), 63-85.
Jean, Ruey-Jer “Bryan”, Daekwan Kim, and Rudolf R. Sinkovics (2012), "Drivers and Performance Outcomes of Supplier Innovation Generation in Customer–Supplier Relationships: The Role of Power-Dependence," Decision Sciences, 43 (6), 1003-1038.
Johnsen, Rhona E. and David Ford "Exploring the Concept of Asymmetry: A Typology for Analysing Customer-Supplier Relationships," Industrial Marketing Management, In Press, Corrected Proof.
Kale, Prashant, Harbir Singh, and Howard Perlmutter (2000), "Learning and Protection of Proprietary Assets in Strategic Alliances: Building Relational Capital," Strategic Management Journal, 21 (3), 217-237.
Lindell, Michael K. and David J. Whitney (2001), "Accounting for Common Method Variance in Cross-Sectional Research Designs," Journal of Applied Psychology, 86 (1), 114.
Lu, Yuan, Lianxi Zhou, Garry Bruton, and Weiwen Li (2010), "Capabilities as a Mediator Linking Resources and the International Performance of Entrepreneurial Firms in an Emerging Economy," Journal of International Business Studies, 41 (3), 419-436.
Malhotra, Naresh K., Sung S. Kim, and Ashutosh Patil (2006), "Common Method Variance in Is Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research,"
Management Science, 52 (12), 1865.
Muller, D., C. M. Judd, and V. Y. Yzerbyt (2005), "When Moderation Is Mediated and Mediation Is Moderated.," Journal of Personality and Social Psychology, 89, 852-863.
Nahapiet, Janine and Sumantra Ghoshal (1998), "Social Capital, Intellectual Capital, and the Organizational Advantage," The Academy of Management Review, 23 (2), 242-266.
Narver, John C., Stanley F. Slater, and Douglas L. MacLachlan (2004), "Responsive and Proactive Market Orientation and New-Product Success," Journal of Product Innovation
Management, 21 (5), 334-347.
Nielsen, Bo Bernhard and Sabina Nielsen (2009), "Learning and Innovation in International Strategic Alliances: An Empirical Test of the Role of Trust and Tacitness," Journal of Management Studies, 46 (6), 1031-1056.
Nunnally, Jum C. and Ira H. Bernstein (1994), Psychometric Theory. New York: McGraw-Hill.
Pérez-Luño, Ana, Carmen Cabello Medina, Antonio Carmona Lavado, and Gloria Cuevas Rodríguez (2011), "How Social Capital and Knowledge Affect Innovation," Journal of Business Research, 64 (12), 1369-1376.
Pete, Engardio, Bruce Einhorn, and Andy Reinhardt (2005), "Outsourcing Innovation,"
Businessweek (3925), 84.
Quinn, James Brian (2000), "Outsourcing Innovation: The New Engine of Growth," Sloan Management Review, 41 (4), 13-28.
Rai, Arun, Ravi Patnayakuni, and Nainika Seth (2006), "Firm Performance Impacts of Digitally Enabled Supply Chain Integration Capabilities," MIS Quarterly, 30 (2), 225-246.
Rosenbusch, Nina, Jan Brinckmann, and Andreas Bausch (2011), "Is Innovation Always Beneficial? A Meta-Analysis of the Relationship between Innovation and Performance in Smes," Journal of Business Venturing, 26 (4), 441-457.
Roy, Subroto and K. Sivakumar (2010), "Innovation Generation in Upstream and Downstream Business Relationships," Journal of Business Research, 63 (12), 1356-1363.
Roy, Subroto, K. Sivakumar, and Ian F. Wilkinson (2004), "Innovation Generation in Supply Chain Relationships: A Conceptual Model and Research Propositions," Journal of the Academy of Marketing Science, 32 (1), 61-79.
Ryu, Sungmin and Nermin Eyuboglu (2007), "The Environment and Its Impact on Satisfaction with Supplier Performance: An Investigation of the Mediating Effects of Control
Mechanisms from the Perspective of the Manufacturer in the U.S.A.," Industrial Marketing Management, 36 (4), 458-469.
Selnes, Fred and James Sallis (2003), "Promoting Relationship Learning," Journal of Marketing, 67 (3), 80-95.
Slater, Stanley F., Jakki J. Mohr, and Sanjit Sengupta (2014), "Radical Product Innovation Capability: Literature Review, Synthesis, and Illustrative Research Propositions," Journal of Product Innovation Management, 31 (3), 552-566.
Steenkamp, Jan-Benedict and Hans Baumgartner (1998), "Assessing Measurement Invariance in Cross-National Consumer Research," Journal of Consumer Research, 25 (1), 78-90.
Story, Vicky M., Kevin Daniels, Judy Zolkiewski, and Andrew R. J. Dainty (2014), "The Barriers and Consequences of Radical Innovations: Introduction to the Issue," Industrial Marketing Management, 43 (8), 1271-1277.
Subramaniam, Mohan and Mark A. Youndt (2005), "The Influence of Intellectual Capital on the Types of Innovative Capabilities," The Academy of Management Journal, 48 (3), 450-463.
Tangpong, Chanchai, Michael D. Michalisin, and Arlyn J. Melcher (2008), "Toward a Typology of Buyer–Supplier Relationships: A Study of the Computer Industry," Decision Sciences, 39 (3), 571-593.
Taylor, Alva and Henrich R. Greve (2006), "Superman or the Fantastic Four? Knowledge Combination and Experience in Innovative Teams," Academy of Management Journal, 49 (4), 723-740.
Teece, David, Gary Pisano, and Amy Shuen (1997), "Dynamic Capabilities and Strategic Management," Strategic Management Journal, 18 (7), 509-533.
Tsai, Wenpin (2001), "Knowledge Transfer in Intraorganizational Networks: Effects of Network Position and Absorptive Capacity on Business Unit Innovation and Performance," Academy of Management Journal, 44 (5), 996-1004.
Uzzi, Brian (1997), "Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness," Administrative Science Quarterly, 42 (1), 35-67.
Villena, Verónica H., Elena Revilla, and Thomas Y. Choi (2011), "The Dark Side of Buyer–Supplier Relationships: A Social Capital Perspective," Journal of Operations Management, 29 (6), 561-576.
Wooldridge, Jeffrey M. (2009), Introductory Econometrics: A Modern Approach: South-Western Pub.
Xueming, Luo, David A. Griffith, Sandra S. Liu, and Shi Yi-Zheng (2004), "The Effects of Customer Relationships and Social Capital on Firm Performance: A Chinese Business Illustration," Journal of International Marketing, 12 (4), 25-45.
Yli-Renko, Helena, Erkko Autio, and Harry J. Sapienza (2001), "Social Capital, Knowledge Acquisition, and Knowledge Exploitation in Young Technology-Based Firms," Strategic Management Journal, 22 (6-7), 587-613.
Yu, Julie and Harris Cooper (1983), "A Quantitative Review of Research Design Effects on Response Rates to Questionnaires," Journal of Marketing Research, 20 (1), 36-44.
Zheng, Wei (2010), "A Social Capital Perspective of Innovation from Individuals to Nations:
Where Is Empirical Literature Directing Us?," International Journal of Management Reviews, 12 (2), 151-183.
Zheng Zhou, Kevin, Chi Kin Yim, and David K. Tse (2005), "The Effects of Strategic Orientations on Technology- and Market-Based Breakthrough Innovations," Journal of Marketing, 69 (2), 42-60.
Zhou, Kevin Zheng and Caroline Bingxin Li (2012), "How Knowledge Affects Radical Innovation:
Knowledge Base, Market Knowledge Acquisition, and Internal Knowledge Sharing,"
Strategic Management Journal, 33 (9), 1090-1102.
Table 1: Measures and Composite Reliabilities Construct (Composite Reliability: CR)
Item (Loading)
Social Capital (CR = .81) (1 = strongly disagree; 7 = strongly agree)
We expect the relationship with our major international customer to continue a long time. (.81) Our key customer is trustworthy. (.60)
The goals and objectives of both parties in the relationship with our international customers are compatible. (.74)
Our relationship with our major international customer is a long-term alliance. (.85)
Proactive Customer Orientation (CR = .89) (1 = strongly disagree; 7 = strongly agree) We excel at anticipating changes in what our key international customer needs before they even
ask. (.78)
We are able to successfully anticipate changes in our international customers’ needs. (.80)
We are able to present new solutions to our international customer that they actually need but did not think to ask about. (.92)
We are always looking for clues that might reveal changes in what our international customers value beyond what they currently ask of us. (.76)
Joint Learning Capability (CR = .92)
Our relationship with key international customer has established strong capacity and organizational procedures to develop new knowledge sets. (.84)
Our relationship with key international customer is very good at developing rules, directives, formulas, and expert systems to create new knowledge base for our relationship. (.92)
Our relationship with key international customer has developed superior capability to make appropriate changes of organizational structure to incorporate and distribute the developed knowledge and skills.
(.89)
Relationship-based Radical Innovation (CR = .96) (1 = strongly disagree; 7 = strongly agree) Our relationship with this international customer has helped increase sales from radical new products
introduced by our firm in the last three years. (.92)
Our relationship with this international customer has helped our company frequently introduce radical new products into new markets in the last three years. (.96)
Compared with our major competitors, our relationship with this international customer has helped introduce more radical new products in the last three years. (.96)
Supplier Dependence (CR = .88) (1 = strongly disagree; 7 = strongly agree) Our company is strongly dependent on this key international customer. (.79)
It would be very difficult for our company to replace sales and profits realized from this international customer. (.92)
Our international customer would be costly to replace. (.80) _________________________
Fit Indexes:
Chi-Square = 154.807 on 109 d.f.
TLI = .977 CFI = .982 SRMR = .061
________________________________________________________________________
Table 2: Intercorrelations, Shared Variances, and Average Variances Extracted
F1 F2 F3 F4 F5 F6 F7
Social Capital (F1) .52 .21 .34 .07 .22 .00 .00 Customer Orientation (F2) .46 .67 .36 .18 .10 .00 .00 Joint Learning (F3) .58 .60 .80 .25 .10 .00 .00 Rel.-based Innovation (F4) .27 .42 .50 .90 .07 .02 .01 Supplier Dependence (F5) .47 .31 .31 .27 .70 .00 .00 R&D Scale (F6) .06 .05 .03 .15 -.03 -- .00 Initial Firm Size* (F7) -.03 -.01 -.06 -.08 .05 .00 --
Note: Correlations are included in the lower triangle of the matrix and shared variances are included in the upper triangle of the matrix. Average variance
extracted for each construct is reported in the diagonal.
* = Marker Variable
Figure 1: Conceptual Framework
Figure 2: Results of Mediation Tests
* p < .05
** p < .01
Note: Control variable not depicted
Table 3: Results of Multi-group Analyses
Relationship-based Innovation
ODM-Yes ODM-No