Orchestrating Resources with Suppliers for Product Innovation

Journal of Product Innovation Management, Forthcoming

71 Pages Posted: 17 Nov 2023

See all articles by Francesco Chirico

Francesco Chirico

Jonkoping University - Jonkoping International Business School (JIBS); Macquarie University, Macquarie Business School

Lucia Naldi

Jonkoping University - Jonkoping International Business School (JIBS)

Michael A. Hitt

Texas A&M University - Department of Management; Texas Christian University

Philipp Sieger

University of Bern

David Sirmon

University of Washington

Kai Xu

University of Texas at San Antonio

Date Written: September 28, 2023

Abstract

How orchestrating external, supplier-provided resources affects product innovation is an important question. While product innovation is essential to achieve a competitive advantage, it is costly as it requires significant investments. It thus puts a severe strain on firm resources, which is particularly critical for resource-scarce small–medium enterprises (SMEs). Therefore, these firms must combine their own resources with those of external parties, particularly suppliers, to enhance their product innovation. However, knowledge about how orchestrating these resources affects product innovation is limited, because empirical studies on resource orchestration have largely focused on firm-internal resources; furthermore, there is ambiguity regarding the extent to which drawing on external resources is beneficial. In addition, the conditions that affect the resource orchestration–product innovation relationship remain unexplored. Therefore, we focus on supplier logistics integration (SLI), an important resource orchestration action referring to the orchestration of external, supplier-provided resources; we draw on the resource orchestration framework and the related work on organizational rigidity to theorize that there is an inverted U-shaped relationship between SLI and product innovation. Additionally, we suggest that learning orientation and environmental dynamism mitigate rigidities associated with high levels of SLI and thus facilitate the translation of SLI into product innovation. Testing our hypotheses with data from Swedish SMEs supports our theorizing and provides important contributions. Most importantly, we extend the resource orchestration framework to include the focus on external, supplier-provided resources, thereby advancing our knowledge and understanding of resource orchestration for product innovation in SMEs.

Suggested Citation

Chirico, Francesco and Chirico, Francesco and Naldi, Lucia and Hitt, Michael A. and Sieger, Philipp and Sirmon, David and Xu, Kai, Orchestrating Resources with Suppliers for Product Innovation (September 28, 2023). Journal of Product Innovation Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4586722 or http://dx.doi.org/10.2139/ssrn.4586722

Francesco Chirico (Contact Author)

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Lucia Naldi

Jonkoping University - Jonkoping International Business School (JIBS) ( email )

Jönköping, 55111
Sweden

Michael A. Hitt

Texas A&M University - Department of Management ( email )

430 Wehner
College Station, TX 77843-4218
United States
979-458-3393 (Phone)

Texas Christian University ( email )

Fort Worth, TX 76129
United States

Philipp Sieger

University of Bern ( email )

David Sirmon

University of Washington ( email )

Seattle, WA 98195
United States

Kai Xu

University of Texas at San Antonio ( email )

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