Stephan M. Wagner, Christoph Bode
The vast majority of the supplier innovation literature has focused on how buying firms can effectively �pull� innovations from their suppliers. Yet, we know remarkably little about the factors that contribute to a supplier voluntarily �pushing� innovations to its customers. The present study addresses this research gap in the context of industrial buyer�supplier relationships and with a specific focus on relationship-specific investments. Drawing on theory from the relationship-marketing literature and on transaction cost theory, we devise and test a proposed theoretical model that links the level of a supplier's relationship-specific investments to its sharing of innovative ideas regarding products and processes with customers. The model also considers the role of contract length, relationship age, and buyer�supplier cooperation as possible safeguards. The empirical results suggest that a supplier's relationship-specific investments encourage a supplier to suggest ideas of process innovations but to refrain from suggestions about product innovations. The latter effect, however, can be attenuated by appropriate formal and informal safeguards.
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