Abstract
ABSTRACT This article explores how the likelihood and determinants of cooperative innovation with buyers differ between two types of suppliers (i.e. subcontractors and non-subcontractors) due to heterogeneities in the supplier-buyer relationship and resources. It compares and integrates the relational view and the resource-based view (RBV) within the context of vertical cooperative innovation. It finds that the likelihood of cooperative innovation with buyers is higher for subcontractors than for non-subcontractors by analysing the data of Korean firms in the manufacturing sector. In addition, it finds that the status of subcontractors moderates the impact of factors affecting the likelihood of cooperative innovation with buyers. Specifically, the positive effect of process innovation competence on the cooperation likelihood is relatively greater for subcontractors. In contrast, the positive effects of product innovation competence and innovation appropriability are greater for non-subcontractors.
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