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Using Value Chains to Enhance Innovation

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  • Hau L. Lee
  • Glen Schmidt

Abstract

Past research (along with our experience) suggests that a firm's supply chain (i.e., value chain) plays an integral role in its ability to not only reduce cost via process innovation, but also in its ability to develop new products and services. Evidence suggests the value chain is playing an ever‐more‐important role, with greater prevalence of distributed product development (spanning geographic, organizational, or firm boundaries) and open innovation (performed outside the firm). We discuss some of the trends with regard to supplier and customer involvement in the innovation process, and summarize some of the research exploring the rationale behind those trends and the research offering advice on how firms can use external resources to further improve their innovation performance. We present a number of examples that illustrate some best practices.

Suggested Citation

  • Hau L. Lee & Glen Schmidt, 2017. "Using Value Chains to Enhance Innovation," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 617-632, April.
    • Handle: RePEc:bla:popmgt:v:26:y:2017:i:4:p:617-632
    DOI: 10.1111/poms.12665
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    References listed on IDEAS

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    2. Afshari, Hamid & Searcy, Cory & Jaber, Mohamad Y., 2020. "The role of eco-innovation drivers in promoting additive manufacturing in supply chains," International Journal of Production Economics, Elsevier, vol. 223(C).
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    4. Rubén Michael Rodríguez‐González & Gonzalo Maldonado‐Guzman & Antonia Madrid‐Guijarro, 2022. "The effect of green strategies and eco‐innovation on Mexican automotive industry sustainable and financial performance: Sustainable supply chains as a mediating variable," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 779-794, July.
    5. Jung, Se-Youn & Huh, Woonghee Tim & Park, Kun Soo, 2022. "Impact of the arm’s length regulation on a supply chain with asymmetric retailers," European Journal of Operational Research, Elsevier, vol. 300(3), pages 865-883.
    6. Malacina, Iryna & Teplov, Roman, 2022. "Supply chain innovation research: A bibliometric network analysis and literature review," International Journal of Production Economics, Elsevier, vol. 251(C).
    7. Charles H. Fine & Loredana Padurean & Sergey Naumov, 2022. "Operations for entrepreneurs: Can Operations Management make a difference in entrepreneurial theory and practice?," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4599-4615, December.
    8. Sung-Tae Lee & Sun-Moon Jung, 2024. "Does organizational innovation facilitate product innovation? Evidence from Korean Manufacturing Firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(3), pages 551-585, September.
    9. Cheryl Gaimon & Karthik Ramachandran, 2021. "The Knowledge Value Chain: An Operational Perspective," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 715-724, March.
    10. Shen, Bin & Xu, Xiaoyan & Chan, Hau Ling & Choi, Tsan-Ming, 2021. "Collaborative innovation in supply chain systems: Value creation and leadership structure," International Journal of Production Economics, Elsevier, vol. 235(C).
    11. Cheryl Gaimon & Manpreet Hora & Karthik Ramachandran, 2017. "Towards Building Multidisciplinary Knowledge on Management of Technology: An Introduction to the Special Issue," Production and Operations Management, Production and Operations Management Society, vol. 26(4), pages 567-578, April.
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