The effects of buyer-supplier's collaboration on knowledge and product innovation

Abstract

Drawing on marketing and management literature, this study investigates integration mechanisms between channel members. Specifically, the research framework is built upon the buyer-supplier gray-box integration approach, knowledge-based view, and agency theory. This study identifies and compares the effects of two gray-box integration mechanisms, namely supplier task involvement and joint planning, on two kinds of knowledge acquisition. I find that both supplier task involvement and joint planning positively influence manufacturers' product knowledge acquisition and end customer knowledge acquisition. Supplier task involvement has a stronger effect on knowledge acquisition than joint planning. The relationships between integration mechanisms and knowledge acquisition are contingent upon supplier incentives. Furthermore, this study also extends the literature by comparing the effects of two different kinds of knowledge on product innovation performance. Even though both product and end customer knowledge lead to better product innovation performance, end customer knowledge has a stronger effect than product knowledge on product innovation performance. Theoretical and managerial implications are discussed at the end.