11/13/2022 0 Comments Impacts of globalization on innovation![]() The next section of the paper will review the relevant literature and formulate hypotheses. ![]() Therefore, this survey focused on the component category level. Many surveys tend to focus on the firm level and thus miss the fact that different component categories are, or should be, sourced using different strategies, as was pointed out by Kraljic (1983). The paper is based on a large-scale survey of purchasing managers in 679 firms in Europe and North America. The latter two sets of hypotheses concern the impact of supplier integration on supplier product innovation, and whether this impact differs between firms purchasing globally and those that do not. More specifically, the study tests four sets of hypotheses, where the first two concern the difference between firms purchasing globally and those that do not, in terms of both innovation-related priorities for purchasing and supplier product innovation. The overall purpose of this paper is to empirically analyse the impact of global purchasing on innovation sourced from suppliers, while taking into account how firms integrate their suppliers. Kleinschmidt et al., 2007), this study focuses explicitly on the product innovation outcome when purchasing globally. While previous studies have illuminated the role of supplier integration in global product development (e.g. The product innovation outcome of global purchasing is thus interesting to analyse further. Ulrich and Ellison, 2005 Liu et al., 2013). Studies of product development further argue for the need to co-locate and integrate key activities, processes and knowledge in product and manufacturing processes, specifically in development of complex products (e.g. Distant purchasing may cause extended lead times that have a negative effect on time-to-market (TTM) in new product development (NPD) ( Allocca and Kessler, 2006 Bengtsson and Berggren, 2008). While global purchasing may indeed open doors to external knowledge, some studies question its effects on product innovation. This link may represent a complex pattern. The studies on cost effects of global purchasing show mostly ambiguous results or fail to show any effects (see Chiang et al., 2012 and an overview in Schiele et al., 2011).Ĭorresponding large-scale studies on the impact of global purchasing on product innovation performance are even rarer. When comparing two cases, Steinle and Schiele (2008) typically concluded that a “high global sourcing quota does not necessarily improve a firm’s competitiveness”. There are rather few broader empirical studies measuring the actual outcome of global purchasing, and even fewer that have been able to show a positive relationship to company performance (see Kotabe et al., 2008 Quintens et al., 2006 Mol et al., 2005). the overview in Karjalainen and Salmi, 2013), rather than what the effects are. Studies on international and global purchasing have apparently been more interested in questions regarding what to buy and from where (see e.g. Kauppi et al., 2013).ĭespite these arguments, it is less known how global purchasing actually impacts performance. ![]() Facilitating such development necessitates both advanced supplier integration tools and a proficient purchasing department (see e.g. This new approach to product development becomes all the more challenging the more geographically distant the suppliers are ( Narasimhan and Nair, 2005). Accordingly, development of advanced technological products has increasingly become an interorganisational process, involving webs of geographically dispersed players and manufacturing sites ( Contractor et al., 2010 Brusoni et al., 2001 Chiesa et al., 2000). An increasingly important rationale concerns a desire to acquire knowledge and technology from external suppliers ( Henke and Zhang, 2010 Lau et al., 2010). This has initially been driven by expectations of cost reduction ( Trent and Monczka, 2003 Holweg et al., 2011) when goods and services are purchased from low-cost regions. The interest in global purchasing and offshore outsourcing has increased significantly in recent years. The full terms of this licence may be seen at. Anyone may reproduce, distribute, translate and create derivative works of the article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. This work is published under the Creative Commons Attribution (CC BY 3.0) Licence. ![]() Published by Emerald Group Publishing Limited. ![]()
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