IDEAS home Printed from https://ideas.repec.org/p/ems/eureri/22813.html
   My bibliography  Save this paper

The Bright Side and Dark Side of Embedded Ties In Business-to-Business Innovation

Author

Listed:
  • Noordhoff, C.S.
  • Kyriakopoulos, K.
  • Moorman, C.
  • Pauwels, P.
  • Dellaert, B.G.C.

Abstract

While the number and importance of joint innovation projects between suppliers and their customers continue to rise, the literature has yet to resolve a key question—do embedded ties with customers help or hurt supplier innovation? Drawing on both the tie strength and knowledge literatures, we theorize that embedded ties interact with supplier and customer innovation knowledge to influence supplier innovation. In a sample of 157 Dutch business-to-business innovation relationships, we observe that embedded ties weaken how much suppliers benefit from customer innovation knowledge due to worries about customer opportunism (the dark side of embedded ties). However, we uncover three moderating relationship and governance features that allow suppliers to overcome these dark-side effects and even increase innovation (the bright side of embedded ties). Finally, although we predicted a bright-side effect, we find that embedded ties neither help nor hurt the supplier to leverage its own innovation knowledge in the relationship.

Suggested Citation

  • Noordhoff, C.S. & Kyriakopoulos, K. & Moorman, C. & Pauwels, P. & Dellaert, B.G.C., 2011. "The Bright Side and Dark Side of Embedded Ties In Business-to-Business Innovation," ERIM Report Series Research in Management ERS-2011-008-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:22813
    as

    Download full text from publisher

    File URL: https://repub.eur.nl/pub/22813/ERS-2011-008-MKT.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    2. Eric von Hippel & Ralph Katz, 2002. "Shifting Innovation to Users via Toolkits," Management Science, INFORMS, vol. 48(7), pages 821-833, July.
    3. Von Hippel, Eric A. & Katz, Ralph, 2002. "Shifting Innovation to Users Via Toolkits," Working papers 4232-02, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    4. Brian Uzzi & Ryon Lancaster, 2003. "Relational Embeddedness and Learning: The Case of Bank Loan Managers and Their Clients," Management Science, INFORMS, vol. 49(4), pages 383-399, April.
    5. Raj Echambadi & James D. Hess, 2007. "Mean-Centering Does Not Alleviate Collinearity Problems in Moderated Multiple Regression Models," Marketing Science, INFORMS, vol. 26(3), pages 438-445, 05-06.
    6. Lhuillery, Stéphane & Pfister, Etienne, 2009. "R&D cooperation and failures in innovation projects: Empirical evidence from French CIS data," Research Policy, Elsevier, vol. 38(1), pages 45-57, February.
    7. Gary L. Lilien & Pamela D. Morrison & Kathleen Searls & Mary Sonnack & Eric von Hippel, 2002. "Performance Assessment of the Lead User Idea-Generation Process for New Product Development," Management Science, INFORMS, vol. 48(8), pages 1042-1059, August.
    8. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    9. Kwaku Atuahene-Gima & Anthony Ko, 2001. "An Empirical Investigation of the Effect of Market Orientation and Entrepreneurship Orientation Alignment on Product Innovation," Organization Science, INFORMS, vol. 12(1), pages 54-74, February.
    10. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-540, September.
    11. Daniel Z. Levin & Rob Cross, 2004. "The Strength of Weak Ties You Can Trust: The Mediating Role of Trust in Effective Knowledge Transfer," Management Science, INFORMS, vol. 50(11), pages 1477-1490, November.
    12. Sandy D. Jap & Erin Anderson, 2003. "Safeguarding Interorganizational Performance and Continuity Under Ex Post Opportunism," Management Science, INFORMS, vol. 49(12), pages 1684-1701, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maxim Kotsemir & Alexander Abroskin & Dirk Meissner, 2013. "Innovation concepts and typology – an evolutionary discussion," HSE Working papers WP BRP 05/STI/2013, National Research University Higher School of Economics.
    2. Zhang, De-Peng & Yang, Chen-hui & Zhang, Feng-Hua, 2014. "Analysis of the equity preference influence in customer participation incentives," Economic Modelling, Elsevier, vol. 41(C), pages 1-8.
    3. Anna S. Cui & Fang Wu, 2016. "Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 516-538, July.
    4. Alfonso Gambardella & Christina Raasch & Eric von Hippel, 2017. "The User Innovation Paradigm: Impacts on Markets and Welfare," Management Science, INFORMS, vol. 63(5), pages 1450-1468, May.
    5. Ellen Enkel & Annika Groemminger & Sebastian Heil, 2018. "Managing technological distance in internal and external collaborations: absorptive capacity routines and social integration for innovation," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1257-1290, October.
    6. Lokshin, Boris & Hagedoorn, John & Letterie, Wilko, 2011. "The bumpy road of technology partnerships: Understanding causes and consequences of partnership mal-functioning," Research Policy, Elsevier, vol. 40(2), pages 297-308, March.
    7. Piller, Frank & Vossen, Alexander & Ihl, Christoph, 2012. "From Social Media to Social Product Development: The Impact of Social Media on Co-Creation of Innovation," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 66(1), pages 7-27.
    8. Olaf Gaus, 2015. "Wertschöpfungsmöglichkeiten durch neue Medien für kleine und mittlere Unternehmen," FEMM Working Papers 150008, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    9. René Belderbos & Martin Carree & Boris Lokshin & Juan Fernández Sastre, 2015. "Inter-temporal patterns of R&D collaboration and innovative performance," The Journal of Technology Transfer, Springer, vol. 40(1), pages 123-137, February.
    10. Claussen, Jörg & Halbinger, Maria A., 2021. "The role of pre-innovation platform activity for diffusion success: Evidence from consumer innovations on a 3D printing platform," Research Policy, Elsevier, vol. 50(8).
    11. G. Parmentier & Vincent Mangematin, 2014. "Orchestrating innovation with user communities in the creative industries," Grenoble Ecole de Management (Post-Print) halshs-00848861, HAL.
    12. Francesco Paolo Appio & Antonella Martini & Silvia Massa & Stefania Testa, 2016. "Unveiling the intellectual origins of Social Media-based innovation: insights from a bibliometric approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(1), pages 355-388, July.
    13. Parmentier, Guy & Mangematin, Vincent, 2014. "Orchestrating innovation with user communities in the creative industries," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 40-53.
    14. Isabel Schmid & Janik Wörner & Susanne Leist, 2022. "Automated identification of different lead users regarding the innovation process," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 945-970, June.
    15. Philipp Alexander Ebel & Ulrich Bretschneider & Jan Marco Leimeister, 2016. "Can The Crowd Do The Job? Exploring The Effects Of Integrating Customers Into A Company’S Business Model Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-24, October.
    16. Jeroen de Jong & Eric von Hippel, 2010. "Open, distributed and user-centered: Towards a paradigm shift in innovation policy," Scales Research Reports H201009, EIM Business and Policy Research.
    17. von Hippel, Eric, 2010. "Open User Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 411-427, Elsevier.
    18. G. Parmentier & Vincent Mangematin, 2014. "Orchestrating innovation with user communities in the creative industries," Post-Print halshs-00848861, HAL.
    19. Kibaek Lee & Jaeheung Yoo & Munkee Choi & Hangjung Zo & Andrew P Ciganek, 2016. "Does External Knowledge Sourcing Enhance Market Performance? Evidence from the Korean Manufacturing Industry," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-19, December.
    20. M. Max Evans & Ilja Frissen & Anthony K. P. Wensley, 2018. "Organisational Information and Knowledge Sharing: Uncovering Mediating Effects of Perceived Trustworthiness Using the PROCESS Approach," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-29, March.

    More about this item

    Keywords

    bright side; business-to-business partnerships; co-creation; dark side; embedded ties; innovation; knowledge;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ems:eureri:22813. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: RePub The email address of this maintainer does not seem to be valid anymore. Please ask RePub to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/erimanl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.