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Leveraging supplier involvement for fueling manufacturers' firm creativity

Industrial Marketing Management, ISSN: 0019-8501, Vol: 107, Page: 353-367
2022
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Article Description

While existing literature provides rich insights into how supplier involvement significantly contributes to manufacturers' innovation, the effect of supplier involvement on manufacturers' firm creativity remains unclear. By incorporating social network theory with organizational capability theory, this study aims to examine how manufacturers can leverage supplier involvement to enhance firm creativity. The results of dyadic data of 228 manufacturers and suppliers reveal that new knowledge sharing mediates the effect of supplier involvement on firm creativity. In addition, relational governance capability enhances the effect of supplier involvement on new knowledge sharing, while joint learning capability strengthens the effect of new knowledge sharing on firm creativity. Interestingly, the link between new knowledge sharing and firm creativity is an inverted U-shaped relationship. In addition, joint learning capability not only strengthens the positive effect of, but also alleviates the negative effect of new knowledge sharing on firm creativity. These findings provide novel insights for manufacturers to align supplier involvement, new knowledge sharing, and firm capabilities to enhance firm creativity.

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