When purchasing professional services supports innovation

Abstract

This paper explores the potential contribution that purchasing KIBS may have on innovation at the buying firm. It integrates the results of a systematic literature review on purchasing KIBS with literatures respectively on purchasing and KIBS contribution to innovation. Based on the outcomes of an extensive study of the literature, a theoretical framework is proposed in order to understand what could boost innovation outcomes of purchasing KIBS, especially for the buying firms. The framework suggests observing the KIBS triad configuration, i.e. the relationship between KIBS providers, the purchasing function and the user area within the buying firm, and its contingencies and characteristics. Overall, the paper suggests that the way KIBS are purchased can influence their effect on the innovation they generate, offers insights on aspects that need to be considered to increase potential innovation outcomes, and draws attention to the strategic role that purchasing can play in this context. In this way, it moves beyond the debate on purchasing involvement in NPD (new product development) and shows another domain (KIBS services) in which purchasing can contribute to the development of innovation.