Fluffy cuffs: SME’s innovation in alliances with buyer firms

Ricarda B. Bouncken (), Martin Ratzmann () and Jeffrey G. Covin ()
Additional contact information
Ricarda B. Bouncken: University of Bayreuth
Martin Ratzmann: University of Bayreuth
Jeffrey G. Covin: University of Wyoming

Small Business Economics, 2023, vol. 61, issue 3, No 16, 1251 pages

Abstract: Abstract Supplier firms, especially the more resource constraint SMEs, form alliances for product innovation. Supplier firms can try to push in creative inputs while needing to align them with the overall solution of the buyer. Our study zooms in on this push and alignment balancing act. Our theoretical model is informed by the attention-based view. It considers two centralization mechanisms, relationship intensity and formalized specifications of the buyer firm. Our dependent variable is innovation of the SME supplier. The model hypothesizes linear and non-linear effects by relationship intensity and the buyer’s detailed and formalized specifications (e.g., functional principles, features, and design elements). Data collected from 279 European supplier SMEs reveals that moderate levels of “post-formational specifications” proposed by the buyer firm are associated with greater product innovation of the supplier. Interestingly, less product innovation results when the specifications of the buyer are either minimal or high. Stronger relationship intensity allows greater product innovation as it enables partners to capture more benefits from the post-formational specifications as they constructively work together.

Keywords: SME; SME supplier firms; Product development alliances; Post-formational specifications; Innovation (search for similar items in EconPapers)
JEL-codes: C12 C30 C83 D22 M10 O31 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11187-023-00731-z Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:61:y:2023:i:3:d:10.1007_s11187-023-00731-z

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-023-00731-z

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().