Perspectives on Supply Network-Enabled Innovations

Abstract

As organizations become increasingly specialized, their ability to engage the supply network in innovation efforts is becoming critical to their success. In addition, it is imperative for organizations to align internal research and development strategies with knowledge available in the supply network in order to gain superior innovation performance. In this article, we present some perspectives on supply network-enabled innovation and discuss two frameworks that integrate a firm's internal knowledge with that of its supply network to achieve innovation objectives. The inter-related frameworks discussed are anchored in the absorptive capacity and ambidexterity theories. They explicate how firms can effectively align internal innovation activities and knowledge available in the supply network to gain superior innovation outcomes. © 2013 Institute for Supply Management, Inc.