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“Necessary Governing Practices for the Success (and Failure) of Client-Supplier Innovation Cooperation” in Innovation and Supply Chain Management: Relationship, Collaboration and Strategies

Reference:

Servajean-Hilst Romaric (2018) “Necessary Governing Practices for the Success (and Failure) of Client-Supplier Innovation Cooperation” in Moreira António Carrizo, Ferreira Luís Miguel D. F. & Zimmermann Ricardo A. [eds] Innovation and Supply Chain Management: Relationship, Collaboration and Strategies, Cham (CH), Springer International Publishing, (coll. ‘Contributions to Management Science’), pp. 79-100.

Abstract:

This chapter aims to empirically identify governance practices that are critical for the success of client-supplier innovation cooperation. To do so, we use Necessary Condition Analysis (NCA) to screen a large panel of contractual provisions and coordination practices that are theoretically recognized as influencing relationship performance. Based on survey data describing 160 client-supplier relationships on an innovation project, we empirically determine which of these practices are conducive to highest or lowest performing relationship performance. We identify 12 practices – including the necessity of considering a client/supplier as a key account, and regular involvement of the client’s purchasing function– that are critical for creating a high-performing relationship, and 12 that lead to a low-performing relationship – that is, those that should be avoided. Our results provide deeper knowledge of the governance of client-supplier innovation cooperation, thanks to the paradigm change driven by the NCA approach. They also provide direct practical implications: practices to promote or to avoid in order to maximize successful innovation cooperation.

Keywords: Cooperation, innovation, open innovation, client-supplier, necesary condition analysis, governance, performance