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Supply network architecture and its contingent impact on innovation performance: A field study

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  • Kim, Myung Kyo
  • Narayanan, Sriram
  • Narasimhan, Ram

Abstract

Using field study data on complete supply networks for 153 components, collected from a large automotive firm and two consumer electronics manufacturers, we characterize the supply networks for the components in terms of social network analysis metrics and examine the impact of direct ties, indirect ties, and their interaction on innovation performance. Analysis of complete networks is essential for a fuller understanding of the influence of supply network architecture on innovation performance, in particular. In addition, we examine the influence of the original equipment manufacturer (OEM) on direct suppliers and its moderating influence on the impact of direct and indirect ties in the supply network on innovation performance. Specifically, we find that the impact of direct ties on innovation performance is significant and positive. Interestingly, the indirect ties negatively moderate the impact of direct ties on innovation performance. Further, we find that the greater the degree of influence the OEM exerts on its direct suppliers, the lower the performance gains. We discuss these findings and their implications for innovation performance.

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  • Kim, Myung Kyo & Narayanan, Sriram & Narasimhan, Ram, 2020. "Supply network architecture and its contingent impact on innovation performance: A field study," International Journal of Production Economics, Elsevier, vol. 224(C).
    • Handle: RePEc:eee:proeco:v:224:y:2020:i:c:s0925527319303779
    DOI: 10.1016/j.ijpe.2019.107551
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    2. Han, Jing & Guo, Ju-E & Cai, Xun & Lv, Cheng & Lev, Benjamin, 2022. "An analysis on strategy evolution of research & development in cooperative innovation network of new energy vehicle within policy transition period," Omega, Elsevier, vol. 112(C).
    3. Myung Kyo Kim & Ram Narasimhan & Tobias Schoenherr, 2020. "Leveraging Logistics Competence in New Product Sourcing: The Role of Strategic Intent and Impact on Performance," Logistics, MDPI, vol. 4(4), pages 1-17, October.

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