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Purchasing Capabilities for Supplier Innovation in New Product Development

David T Rosell, Nicolette Lakemond, Mandar Dabhilkar and Lars Bengtsson

Linköping University Post Print

N.B.: When citing this work, cite the original article.

Original Publication: David T Rosell, Nicolette Lakemond, Mandar Dabhilkar and Lars Bengtsson, Purchasing Capabilities for Supplier Innovation in New Product Development The 18th International Product Development Management Conference, Delft, 5-7 June, 2011 Postprint available at: Linköping University Electronic Press http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-68316

PURCHASING CAPABILITIES FOR SUPPLIER INNOVATION IN NEW PRODUCT DEVELOPMENT

David T Rosell1, Nicolette Lakemond1, Mandar Dabhilkar1,2, Lars Bengtsson3, 1 Linköping University, Linköping, Sweden, david.rosell@liu.se, nicolette.lakemond@liu.se, mandar.dabhilkar@liu.se 2 Royal Institute of Technology (KTH), Stockholm, Sweden, 3 University of Gävle, Gävle, Sweden, lars.bengtsson@hig.se

Abstract Getting innovation out of suppliers requires the internal absorption of supplier knowledge. Few studies have analyzed the role of the purchasing function for realizing this innovation potential. The purpose of the paper is to explore the effect of purchasing capabilities on supplier innovation in relation to different supplier product categories, taking into account innovation performance as a strategic priority moderating the relationship. The results of the paper are based on the international purchasing survey (IPS) and confirm that purchasing capabilities are important for realizing supplier innovation. For strategic products, the effect of purchasing capabilities is leveraged when the firm focuses strategically on innovation. In contrast, for bottleneck and routine products, purchasing capabilities are leveraged when there is a low focus on innovation in the firm. Consequently, firms need to prepare purchasing with the right capabilities to ensure their...