International Journal of Operations & Production Management, Volume 35, Issue 3, March 2015.
Purpose This study describes different ways in which a buyer and supplier can be embedded in a dyadic relationship and how these differences influence patterns of inter-firm innovation activities and outcomes. Specifically, to address the relative paucity of theoretical work on how dyadic configurations influence parties’ joint innovation behavior, this study examines how different BSE configurations change the four choices that pertain to the levels of involvement buyers and suppliers exhibit in inter-firm innovation activities. These choices concern the processes buyers use to engage suppliers; the scope of efforts in each party; the locus of effects determining the beneficiaries; and the extent to which parties disclose private innovations within the relationship. Design/methodology/approach Drawing on social embeddedness literature, we conceptualize dyad level, buyer-supplier embeddedness (BSE) in two dimensions—relational and structural. The relational dimension describes the quality of relationship, while the structural dimension describes the intensity of exchanges between the parties. Together these dimensions allow us to map the differences in BSE configurations and provide a basis for exploring their links to inter-firm innovation patterns. Findings We demonstrate the configurational approach to the innovation patterns in inter-organizational setting. That is, we conclude that different configurations of BSE are likely to produce distinctive patterns of choices for inter-firm innovation activities. Originality/value This study applies social embeddedness perspective to conceptualize dyadic buyer-supplier embeddedness. Adoption of this concept allows dimensionalizing the dyadic relationships into two distinct dyadic elements, relational and structural dimensions. Also, the concept has rich implications for how partner firms interact and share information. The dyad's innovation potential and patterns are considered based on the configurations of dyadic embeddedness.
Purpose This study describes different ways in which a buyer and supplier can be embedded in a dyadic relationship and how these differences influence patterns of inter-firm innovation activities and outcomes. Specifically, to address the relative paucity of theoretical work on how dyadic configurations influence parties’ joint innovation behavior, this study examines how different BSE configurations change the four choices that pertain to the levels of involvement buyers and suppliers exhibit in inter-firm innovation activities. These choices concern the processes buyers use to engage suppliers; the scope of efforts in each party; the locus of effects determining the beneficiaries; and the extent to which parties disclose private innovations within the relationship. Design/methodology/approach Drawing on social embeddedness literature, we conceptualize dyad level, buyer-supplier embeddedness (BSE) in two dimensions—relational and structural. The relational dimension describes the quality of relationship, while the structural dimension describes the intensity of exchanges between the parties. Together these dimensions allow us to map the differences in BSE configurations and provide a basis for exploring their links to inter-firm innovation patterns. Findings We demonstrate the configurational approach to the innovation patterns in inter-organizational setting. That is, we conclude that different configurations of BSE are likely to produce distinctive patterns of choices for inter-firm innovation activities. Originality/value This study applies social embeddedness perspective to conceptualize dyadic buyer-supplier embeddedness. Adoption of this concept allows dimensionalizing the dyadic relationships into two distinct dyadic elements, relational and structural dimensions. Also, the concept has rich implications for how partner firms interact and share information. The dyad's innovation potential and patterns are considered based on the configurations of dyadic embeddedness.
