Dancing with Power Asymmetries of Innovation Timing in the Supply Chain Framework

Abstract

This paper researches the performance of two innovation timing strategies, pioneer and follower strategies, in the supply chain partnerships considering relational contingencies of coercive power and interrelation intensity. Our study roots on primary data in three industries, at two points of time allowing short and long term insights, and upon validation interviews. Our results indicate that the pioneering strategy improves innovation performance in the short and in the long run. The influence by the follower strategy is less prominent. It improves performance only in two of the industries. Firms that are confronted with coercive power by their supply chain partners experience changes of their innovation performance. Coercive power interacts with both strategies, but in different directions. In the short and in the long run, coercive power reduces the innovation performance of a pioneer strategy, but increases the performance of a follower strategy. Firms pursuing a pioneer strategy can reduce the negat...