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Relational capabilities for value co-creation and innovation in SMEs

Author

Listed:
  • Rhona Johnsen

    (Audencia Recherche - Audencia Business School)

  • Isaac K. Ngugi
  • Peter Erdelyi

Abstract

The purpose of this paper is to examine the relational capabilities developed by small and medium-sized suppliers in relationships with larger customers and to explore the influences of these relational capabilities on value co-creation and innovation. The paper presents a framework to evaluate the types of relational capabilities developed by small and medium-sized suppliers that enable them to manage in relationships with larger customers in the context of changing relationship requirements in the organic food sector. The methodology employed involves in-depth case studies of small and medium-sized UK organic food suppliers working in relationships with large retail supermarket customers. The findings suggest that the identified set of relational capabilities may be employed by small and medium-sized suppliers to enable them to inform and support innovation and the implementation of initiatives to create value in the eyes of their current and potential customers and concomitantly enhance their position as preferred suppliers. The findings were based on a small number of case studies of small UK organic food suppliers. Therefore, there is scope for future studies to explore the issues addressed in the paper in wider relationship, network and country settings. The research is among the first to offer a conceptual framework and an empirical contribution linking relational capabilities, value co-creation and innovation in small and medium-sized suppliers.

Suggested Citation

  • Rhona Johnsen & Isaac K. Ngugi & Peter Erdelyi, 2010. "Relational capabilities for value co-creation and innovation in SMEs," Post-Print hal-00771149, HAL.
    • Handle: RePEc:hal:journl:hal-00771149
    DOI: 10.1108/14626001011041256
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    Citations

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    Cited by:

    1. Handyanto Widjojo & Avanti Fontana & Gita Gayatri & Agus W. Soehadi, 2019. "Value Co-Creation For Marketing Innovation: Comparative Study In The Sme Community," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-31, May.
    2. Miri Kim & Jaeki Song & Jason Triche, 2015. "Toward an integrated framework for innovation in service: A resource-based view and dynamic capabilities approach," Information Systems Frontiers, Springer, vol. 17(3), pages 533-546, June.
    3. Hasyim & Sahyar & Mahmud, 2017. "Isolating Mechanism as a Mean to Improve Performance of SMEs," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 594-612.
    4. Nuryakin & Vincent Didiek Wiet Aryanto & Mulyo Budi Setiawan, 2018. "Mediating effect of value creation in the relationship between relational capabilities on business performance," Contaduría y Administración, Accounting and Management, vol. 63(1), pages 33-34, Enero - M.
    5. Ghulam-Muhammad Shah & Farid Ahmad & Shailesh Panwar & Manbar S. Khadka & Ajaz Ali & Suman Bisht, 2019. "Ocimum Sanctum [ Tulsi ]—An Alternative Additional Livelihood Option for the Poor and Smallholder Farmers," Sustainability, MDPI, vol. 11(1), pages 1-15, January.
    6. Giulia Nardelli & Marcel Broumels, 2018. "Managing Innovation Processes Through Value Co-Creation: A Process Case From Business-To-Business Service Practise," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-40, April.
    7. Matthews, Russell S. & Chalmers, Dominic M. & Fraser, Simon S., 2018. "The intersection of entrepreneurship and selling: An interdisciplinary review, framework, and future research agenda," Journal of Business Venturing, Elsevier, vol. 33(6), pages 691-719.
    8. Gegužytė Gintarė & Bagdonienė Liudmila, 2021. "Value Co-Creation in Engineering Service Innovation: Resources and Capabilities Perspectives," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 29(4), pages 91-123, December.
    9. Diana Lorena Pineda Ospina, 2015. "Análisis bibliométrico para la identificación de factores de innovación en la industria alimenticia," Revista Ad-Minister, Universidad EAFIT, issue 27, pages 95-126, October.
    10. Agustinus A. Toryanto & Hasyim, 2017. "Networking Quality and Trust in Professional Services," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 354-370.
    11. Aris Tri Haryanto & Tulus Haryono & Hunik Sri Runing Sawitri, 2017. "Market Orientation, Learning Orientation and Small Medium Enterprises Performance:The Mediating Role of Innovation," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 484-491.
    12. Jonathan Rösler & Tobias Söll & Louise Hancock & Thomas Friedli, 2021. "Value Co-Creation between Public Service Organizations and the Private Sector: An Organizational Capabilities Perspective," Administrative Sciences, MDPI, vol. 11(2), pages 1-20, May.
    13. Garri, Myropi, 2021. "Coopetition, value co-creation, and knowledge-enhancement in the UK alpaca industry: A multi-level mechanism," European Management Journal, Elsevier, vol. 39(5), pages 545-557.
    14. Meena Chavan & Renu Agarwal, 2016. "The Efficacy of Linkages for Relational Capability Building and Internationalization-Indian and Australian Mining Firms," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 15(1), pages 51-78, June.
    15. Gliga, Gabriela & Evers, Natasha, 2023. "Marketing capability development through networking – An entrepreneurial marketing perspective," Journal of Business Research, Elsevier, vol. 156(C).
    16. Hullova, Dusana & Laczko, Pavel & Frishammar, Johan, 2019. "Independent distributors in servitization: An assessment of key internal and ecosystem-related problems," Journal of Business Research, Elsevier, vol. 104(C), pages 422-437.
    17. Malik, Ashish & Sharma, Piyush & Kingshott, Russel & Laker, Benjamin, 2022. "Leveraging cultural and relational capabilities for business model innovation: The case of a digital media EMMNE," Journal of Business Research, Elsevier, vol. 149(C), pages 270-282.
    18. Francis K. Kariuki & Beatrrice Ombaka & Teresia Kyalo, 2020. "Moderating effect of social media on relationship between entrepreneurial networking and performance of youth owned agro-processing SMEs in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 41-50, July.
    19. Appiah, Gloria & Bonsu, Samuel K. & Sarpong, David, 2021. "The unpowered customer: Co-creation as tactics of the weak," Journal of Business Research, Elsevier, vol. 133(C), pages 317-326.
    20. Monica Mendini & Paula C. Peter & Leandro Bitetti & Iana A. Castro, 2024. "An interdisciplinary marketing call into food design thinking to create innovative, healthy, and pleasurable food experiences," Italian Journal of Marketing, Springer, vol. 2024(4), pages 395-417, December.

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