Open innovation in supply networks: an expectation disconfirmation theory perspective

Abstract

PurposeThis study aims to use expectation disconfirmation theory (EDT) to investigate how an organization’s satisfaction with its supply network’s behavior influences its intention to open innovation with that network. This paper proposes that an organization’s orientation to open innovation is influenced by confirmation of previously held expectations of trust and commitment and level of perceived procedural justice in its open innovation partner. This paper also examines the effect of this orientation on the organization’s supply chain competence.Design/methodology/approachUsing data from a survey of 286 European firms, the study proposes and evaluates a structural equation model.FindingsThe results show that a positive disconfirmation of trust (where perceived trust exceeds expectations) plays a crucial role in shaping organizations’ intentions to continue open innovation with their supply networks. These results show that disconfirmation is a good predictor of overall satisfaction with open innovation. This paper also confirms the positive effect of orientation to open innovation on supply chain competence. Finally, this paper obtained evidence for the positive effect of supply chain competence on firm performance.Originality/valueThis study shows the importance of managing expectations in open innovation under the EDT. To the best of the authors’ knowledge, no previous research has analyzed the consistency between the trust and commitment an organization expects from its open innovation partner and the trust and commitment it ultimately perceives as a factor explaining its degree of orientation to open innovation. Therefore, this research contributes to a better understanding of open innovation enablers and also its consequences.