The role of supplier relationships in the development of new business ventures

Antonella La Rocca, Andrea Perna (), Ivan Snehota and Francesco Ciabuschi
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Antonella La Rocca: ESC [Rennes] - ESC Rennes School of Business
Andrea Perna: UNIVPM - Polytechnic University of Marche / Università Politecnica delle Marche, Uppsala University
Ivan Snehota: USI - Università della Svizzera italiana = University of Italian Switzerland
Francesco Ciabuschi: Uppsala University

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Abstract: New business ventures have rather limited resources, generally suffer from liabilities of smallness and newness and rely on external business relationships, typically with suppliers, for developing and acquiring necessary resources. Yet, to date, research on how new ventures develop initial relationships with suppliers and how these affect the nascent business has been limited. Taking the business network perspective and relating it to studies of supply chain and supplier involvement in product development, our study contributes to the rather limited body of knowledge on new ventures' supplier relationships. Empirically, we draw on a longitudinal, in-depth single-case study of the first two years of operation of a start-up. Our study shows that the development of the key initial supplier relationships starts from open-ended expectations of mutual future relational benefits and involves a stepwise ‘inter-definition' of solutions in interaction between the parties. We observe that interdependences arise between the new venture and its key suppliers and these enable but also limit, the development paths of both partners. We argue that the key initial supplier relationships extend a new venture's resource and capability base and are an integral part of a new venture's business model.

Keywords: Start-up; Supplier relationships; Business network; Business venture; Business relationship (search for similar items in EconPapers)
Date: 2019-07
Note: View the original document on HAL open archive server: https://rennes-sb.hal.science/hal-02285105v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in Industrial Marketing Management, 2019, 80, pp.149-159. ⟨10.1016/j.indmarman.2017.12.008⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02285105

DOI: 10.1016/j.indmarman.2017.12.008

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