Business Commons^™

Linkages Between Firm Innovation Strategy, Suppliers, Product Innovation, And Business Performance: Insights From Resource Dependence Theory, Muhammad Shakeel Sadiq Jajja, Vijay R. Kannan, Shaukat Ali Brah, Syed Zahoor Hassan

Management Faculty Publications

Purpose The purpose of this paper is to use resource dependence theory to hypothesize that a buyer’s innovation strategy enhances supplier innovation focus and a buyer-supplier relationship that supports product innovation. These in turn positively impact buyer product innovation outcomes and business performance. Moreover, it is argued that the buyer-supplier relationship positively moderates the impact of supplier innovation focus on product innovation. Design/methodology/approach Structural equation modeling and hierarchical linear regression are used to test hypotheses. Findings The results support all hypotheses and suggest that company (buyer) age and variables related to buyer engagement with international markets directly influence performance. The …