Exploiting supplier innovativeness through knowledge integration

Firms are increasingly involving and relying on networks of suppliers and other external partners in their innovation processes. A successful exploitation of suppliers’ technology and competencies is however challenging, not least in situations characterised by technological uncertainty. The main purpose of this study is to analyse how supplier innovativeness may be leveraged through internal knowledge integration capabilities in involving suppliers. The analysis is based on a survey of firms in Europe and North America. The study shows that innovative suppliers do contribute to a firm’s innovation performance in terms of time-to-market and level of innovation in products/services. The main result is that an internal knowledge integration capability in terms of proficiency in supplier management and cross-functional decision making boosts innovation performance, in particular when technological uncertainty is high.