Supplier cluster characteristics and innovation outcomes

Rajani Ganesh Pillai and Vishal Bindroo

Journal of Business Research, 2020, vol. 112, issue C, 576-583

Abstract: The role of suppliers in firms’ innovation processes is well established. Yet understanding of the effect of supplier clusters and their characteristics on firms’ innovation outcomes is lacking. This paper focuses on two important characteristics of supplier clusters—supplier cluster proximity and supplier cluster heterogeneity—and examines their impact on the speed to market of innovations and the type of innovations produced. Using a multi-country dataset, the study shows that supplier proximity improves speed to market of innovations and that greater heterogeneity among supplier clusters decreases the rate of radical innovations of firms. Through a nuanced view of supplier clusters, this research contributes to the literature on clusters and innovations by highlighting the role of supplier clusters.

Keywords: Clusters; Supplier cluster; Innovation; Radical innovation; Incremental innovation; Cluster proximity; Cluster heterogeneity (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:112:y:2020:i:c:p:576-583

DOI: 10.1016/j.jbusres.2019.11.023

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