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Leveraging the supply chain for competitive resources remains a key challenge for supply chain management. Drawing on social exchange theory, this study examines SCM practices that help firms to acquire better supplier resources than rival firms that source from the same supplier. We provide a clearer picture of coercive and competence power, and goodwill and competence trust as key mechanisms to improve supplier resource allocation of physical and innovation resources. We analyze survey data of 185 supplying firms using structural equation modeling. Our analyses yield several interesting findings. First, contrary to other studies, we find that coercive tactics do not necessarily affect supplier resource allocation negatively and goodwill trust does not inherently affect supplier resource allocation positively. Second, the results of a multigroup analysis indicate that the dependence of a supplier on the buying firm--in terms of share in turnover--affects the relationship between the trust dimensions and supplier resource allocation more than it does the power dimensions. Third, goodwill trust only affects supplier resource allocation when the buyer has a large share in the supplier's turnover, while competence trust is more effective if buyers account for a small share in the supplier's turnover. The contributions of our study for the supply chain management and social exchange theory literature are discussed. Keywords: supplier resource allocation; social exchange theory; power; trust, INTRODUCTION The relationships between a buying firm and its suppliers are crucial in acquiring resources that are essential for achieving firm-level competitive advantage (Ellram, Tate & Feitzinger, 2013; Hitt, 2011). [...]

OVERVIEW: In tile context of open innovation, firms increasingly rely on the collaboration of suppliers in their innovation processes. However, not all competent suppliers are willing to collaborate with all buyers, which is why achieving preferred customer status with key suppliers becomes important. This paper presents the results of a consortial benchmarking project that studied the supplier relationship management tactics of several best-practice firms. It identifies characteristics of suppliers who innovate well with their customers and emphasizes the importance of a firm establishing itself as an attractive customer as a prerequisite of successful buyer-supplier collaborations. This paper proposes additional sourcing criteria to identify innovative suppliers and introduces a supplier portfolio model based on customer attractiveness and supplier competence. KEYWORDS: Open innovation, Early supplier integration, Sourcing, Buyer-supplier relations, The 1990s saw a fundamental shift in the way companies approach innovation. In the beginning of the decade, a panel study revealed that most firms innovated internally, but by the [...]

To authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1467-9310.2010.00602.x Byline: Holger Schiele (1) Abstract: Interest in early supplier integration in new product development (NPD) has increased as an open innovation approach has become more common in firms. To support supplier integration, the purchasing function of a firm can assume a new 'dual' role: contributing to NPD while also managing overall costs. Previous research has offered few insights into how the purchasing function should best be organised so that it will fulfil this dual role. This paper reports on the results of a consortial benchmarking study in which an industry-academic consortium visited and analysed six best-practice firms. The findings describe how innovative firms organise their purchasing function, distinguishing between 'advanced sourcing' and 'life-cycle sourcing' units. The results include the tools that these firms use, such as regular innovation meetings with suppliers and technology roadmaps linking firm strategy, innovation strategy and sourcing strategies. The paper also recommends that researchers shift from a narrow focus on a single project to a broader consideration of supplier and organisational issues in NPD. Author Affiliation: (1)University of Twente, School of Management and Governance, Capitool 15, 7500 AE Enschede, The Netherlands.h.schiele@utwente.nl

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.indmarman.2006.05.003 Byline: Holger Schiele Keywords: Innovation; New product development; Systems of innovation approach; Supplier selection; Strategic sourcing; Early supplier inclusion Abstract: For companies operating under unfavorable macroeconomic conditions, such as high wage/high tax countries in central Europe, innovation has become a central theme for survival. If there is one thing that has changed in innovation management during the last decade, it is the growing reliance on external sources of technology. As a consequence, a new task for purchasing arises, as firms need to understand which suppliers actually do have high potential contributing to the innovativeness of the firm and which do not. This paper focuses on the conceptual basis and derives propositions on the nature of innovative suppliers: specialized, technically competent firms, located in the proximity of the buyer, being embedded in a trusted and intensive relationship are identified as having a higher probability to be the core innovative suppliers. These criteria can serve to refine strategic sourcing decisions and improve communication between engineering and purchasing professionals. Author Affiliation: University of Hanover and h&z business consulting, Munich, Duesseldorf, Germany Universitat Hannover, Institut fur Unternehmensfuhrung und Organisation, Konigsworther Platz 1, D-30167 Hannover, Germany Article History: Received 1 September 2005; Revised 9 May 2006; Accepted 9 May 2006

Factors that are responsible for the susceptibility of an industry to grow in a particular area or region are analyzed.

The importance of supplier selection for new-product marketing is discussed.