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 the number of new products developed. In addition, previous studies have shown that different conceptualizations of the
innovation process 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) develop and test a model of antecedents, moderators, and performance outcomes of exploratory and exploitative innovation in the intra-organizational context.
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).
Regarding 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 and geographic 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 identities of customers are sensitive in these types of international relationships. Overcoming these obstacles would contribute to the thorough understanding of innovation generation in global supply chains. Another related 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 inferred. Future studies could overcome this limitation by using experiments or longitudinal data collection, although such studies might only be possible for relatively short periods and limited geographic areas.
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Table 1: Measures and Composite Reliabilities Construct (Composite Reliability: CR
Our key international customer is trustworthy. (.60)The goals and objectives of both parties in the relationship with our international customer are compatible.
(.60)
We expect the relationship with our major international customer to continue for a long time. (.81) Our relationship with our major international customer is a long-term alliance. (.85)