Strategic Innovation Procurement: Managerial Practices in Buyer-Supplier R&D Collaboration

Abstract

Increasing competition to satisfy the end-customer needs, fluctuating market conditions and constant technological innovation in the global market place, has made the attainment of competitive advantage more challenging than ever. From Supply Chain Management (SCM) point of view, industrial organizations are simply forced to reconsider their current procurement strategies and processes, optimize supply bases and identify the best practices to enhance supplier, relationship and customer performance.

This study reviews the different types of Supplier Development (SD) practices and their relation to relationship specific dimensions: relational structure, relational capital or trust and relationship learning. The study applies qualitative multiple case study approach to analyze four buyer-supplier R&D collaborations.

My research indicates that the case company would benefit from in-depth analysis of the embedded SD strategies and practices, which are related to relational structure, relationship capital and relational learning. This would yield collaborative advantages in R&D project management. In addition, more attention should be paid to practices, which facilitate relationship learning. My study is one of the first ones to examine different types of SD practices utilized in context of buyer-supplier R&D collaboration. Thus, extends the existing literature on Supplier Development.