Abstract
What are the main predictors of the development of embedded ties? What are the impacts of supplier-knowledge, client-knowledge, and embedded-tie variables on the development of supplier innovation in the cooperative sector? What is the moderating role of embedded ties in the development of supplier innovation? This study brings together 126 responses from suppliers of a large agro-industrial cooperative. The results show that embedded ties have a positive impact on the development of innovation and knowledge for innovation. Furthermore, a significant association between supplier knowledge and innovation was found, which is moderated by embedded ties. Data show that embedded ties amplify the ability to develop innovation in industrial relationships.
Highlights
Embedded ties are a type of relationship where social relations are reciprocal between those partners involved (Baldi & Vieira, 2006)
Results from Saxenian (1996) illustrate how preoccupations with opportunism can undermine the implementation of innovations in relationships between organizations, such as the example of Hewlett Packard having in the 1980s and 1990s an increased ability to identify market trends, because of strong integration of embedded ties with suppliers compared with companies like D.E.C. and Apollo Computer
Saxenian (1996) commented that the embedded ties between Hewlett Packard and its suppliers helped the company to develop more innovations and better position itself against competitors, which meant that Hewlett Packard could enjoy supplier expertise and avoid opportunistic behavior
Summary
Embedded ties are a type of relationship where social relations are reciprocal between those partners involved (Baldi & Vieira, 2006). Anderson and Weitz (1989), Day (1994), Rowley, Behrens, and Krackhardt (2000), and Rindfleisch and Moorman (2001) argue that embedded ties favor the development of innovation in relationships between organizations because there is greater trust between partners. In this sense, collaboration between partners creates mutual support (Narayanan, Narasimhan, & Schoenherr, 2015) and innovation is encouraged. There is transfer of knowledge and effort in collaboration with a partner that can overcome difficult situations (Figueiredo, Andrade, & Brito, 2010)
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