Like minds think alike: impacts of cultural and trust congruences on joint innovation

Abstract

PurposeEngaging suppliers in joint innovation can be an effective means for buyer firms to overcome internal resource/capability limitations. The purpose of this research is to investigate the impacts of cultural and trust congruences between the supplier and buyer firms on joint innovation. In addition, we examine the relationship commitment as an antecedent of cultural and trust congruences.Design/methodology/approachThe study constructs a theoretical model based on social exchange theory (SET) and examines it using data from Chinese manufacturing firms.FindingsThe results suggest that cultural and trust congruences between suppliers and buyers positively influence joint processes and product innovations. Furthermore, we find that while normative relationship commitments of supplier firms promote cultural and trust congruences with buyers, instrumental relationship commitments only positively affect trust congruence.Originality/valueThis study enhances our understanding of social exchanges by adopting a dyadic view to examine the interconnectedness between relationship commitment, cultural and trust congruences, and joint innovation. These findings also offer practical managerial implications for managing collaborative innovation projects.