Leveraging the supply base for innovation: how does supply base management affect innovation performance?

Abstract

PurposeThis study aims to develop a moderated mediation model to explain the practices of supply base management and how they can achieve innovation performance, and the authors explore the boundary conditions of this implementation mechanism.Design/methodology/approachThe authors used the bootstrap procedure to conduct empirical tests on 328 Chinese manufacturers to verify the proposed model.FindingsThe results showed that supplier innovation focus, supply-base structuring and long-term relationship focus have a positive impact on innovation performance through supplier innovativeness, and the mediation performs differently under technology and demand uncertainty.Research limitations/implicationsThe authors only focused on innovation performance, and it does not explore the links between supply base management and other performance outcomes. This study involves part of the supply network which is easier to manage, i.e. supply base. The authors ignored the importance of other members in supply network. Finally, the data obtained in this study belong to the cross-sectional data during the same period but it accomplishes the research aim well.Practical implicationsThe focal firm needs to improve their supply base composition, establish permeable organizational boundaries, and build long-term strategic partnerships characterized by equality and trust with suppliers to stimulate supply base members to make innovative contributions.Originality/valueThis study complements the implementation path of manufacturers around innovation, emphasizing multidimensional characteristics of supply base management. And this study clarifies the mechanism and boundary conditions between supply base management and innovation performance.