Innovation generation in buyer-seller relationships

Abstract

In recent years, a number of researchers have questioned the traditional notion of the producer as the sole generator of innovation in buyer seller relationships. Increasingly, innovation generation has been recognized as an outcome of interaction between a firm and various outside entities. According to this view, supplier involvement and alliances are a route to innovation generation. Clearly, business market relationships provide an important opportunity for interaction between buyer and seller. Despite this realization, only very limited research has focused on innovation generation in business-to-business relationships. To alleviate this important gap in literature, this thesis develops a conceptual model and hypotheses of innovation generation in business-to-buyer seller relationships. The research uses a combination of qualitative and quantitative techniques to examine the proposed theoretical model of innovation generation. A pilot case study is followed by development of and purification of measures using the IMP database on supplier customer interfirm relations in Europe and China. The hypotheses and model are tested using correlation and regression analysis. Results suggest that innovation generation is indeed facilitated by buyer seller interactions. Interaction also moderates the effect of other relationship and technology factors and type of innovation generated

Date of Award	2001
Original language	English