{"title":"Managing the dependency of focal firms on innovative suppliers: A qualitative study of automotive manufacturers in South Africa","authors":"A. Agigi, K. Mocke, Iman Carrim, Logan Keen","doi":"10.1080/23322373.2021.1930740","DOIUrl":null,"url":null,"abstract":"ABSTRACT Supply chain innovation (SCI) has been cited as a key source of competitive advantage. Previous studies have focused on the role of suppliers as a valuable source of innovation. OEMs (Original Equipment Manufacturers) are constantly faced with dramatic changes and the need to constantly innovate. Literature has investigated how focal firm’s innovation requirements are passed on to suppliers. Dependency on suppliers for SCI, however, is less understood. This study explored how firms manage dependency on suppliers for SCI. The qualitative study consisted of 10 semi-structured interviews with OEMs operating in South Africa. Employing resource dependency theory (RDT), relational view (RV) and absorptive capacity (AC), the study outlines strategies to manage dependency on suppliers. Three main strategies were explored, namely, building internal capability by promoting innovation internally, long-term relationships with suppliers and the influence of absorptive capacity and learning in reducing dependency on suppliers for SCI. Findings show that firms employ these strategies in isolation while highlighting the potential for an integrated approach. The study suggests ways in which firms can continue to work with their suppliers and still unlock benefits that reduce their dependency on suppliers.","PeriodicalId":37290,"journal":{"name":"Africa Journal of Management","volume":"7 1","pages":"31 - 57"},"PeriodicalIF":1.2000,"publicationDate":"2021-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/23322373.2021.1930740","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Africa Journal of Management","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/23322373.2021.1930740","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 2
Abstract
ABSTRACT Supply chain innovation (SCI) has been cited as a key source of competitive advantage. Previous studies have focused on the role of suppliers as a valuable source of innovation. OEMs (Original Equipment Manufacturers) are constantly faced with dramatic changes and the need to constantly innovate. Literature has investigated how focal firm’s innovation requirements are passed on to suppliers. Dependency on suppliers for SCI, however, is less understood. This study explored how firms manage dependency on suppliers for SCI. The qualitative study consisted of 10 semi-structured interviews with OEMs operating in South Africa. Employing resource dependency theory (RDT), relational view (RV) and absorptive capacity (AC), the study outlines strategies to manage dependency on suppliers. Three main strategies were explored, namely, building internal capability by promoting innovation internally, long-term relationships with suppliers and the influence of absorptive capacity and learning in reducing dependency on suppliers for SCI. Findings show that firms employ these strategies in isolation while highlighting the potential for an integrated approach. The study suggests ways in which firms can continue to work with their suppliers and still unlock benefits that reduce their dependency on suppliers.
期刊介绍:
The beginning of the Twenty First Century has witnessed Africa’s rise and progress as one of the fastest growing and most promising regions of the world. At the same time, serious challenges remain. To sustain and speed up momentum, avoid reversal, and deal effectively with emerging challenges and opportunities, Africa needs better management scholarship, education and practice. The purpose of the Africa Journal of Management (AJOM) is to advance management theory, research, education, practice and service in Africa by promoting the production and dissemination of high quality and relevant manuscripts. AJOM is committed to publishing original, rigorous, scholarly empirical and theoretical research papers, which demonstrate clear understanding of the management literature and draw on Africa’s local indigenous knowledge, wisdom and current realities. As the first scholarly journal of the Africa Academy of Management (AFAM), AJOM gives voice to all those who are committed to advancing management scholarship, education and practice in or about Africa, for the benefit of all of Africa. AJOM welcomes manuscripts that develop, test, replicate or validate management theories, tools and methods with Africa as the starting point. The journal is open to a wide range of quality, evidence-based methodological approaches and methods that “link” “Western” management theories with Africa’s indigenous knowledge systems, methods and practice. We are particularly interested in manuscripts which address Africa’s most important development needs, challenges and opportunities as well as the big management questions of the day. We are interested in research papers which address issues of ethical conduct in different African settings.