Industrial innovation, corporate governance and supplier‐customer relationships

Abstract

Purpose -The purpose of this paper is to explore the linkage among three factorsshareholder-manager relationships (or corporate governance), customer supplier relationships, and innovation, for two groups of UK firms in the speciality chemicals and electrical equipment industries. Design/methodology/approach -This research was exploratory. In total, 12 companies were studied in depth. The level of innovation was measured through a questionnaire and interviews were carried out with managers, important customers and suppliers. A comparison of management practices was established between the more and the less innovative companies. Findings -This research finds a close connection between shareholder-manager relationships, customer and supplier relationship management and innovation. The firms subject to arms-length relationships with shareholders (as UK-based public limited companies) had more distant relationships with suppliers and customers and poorer innovative performance.Research limitations/implications -The validity and reliability of the conclusions require the undertaking of quantitative studies. Other aspects apart from those explored could affect the level of innovation of companies. Practical implications -In the more innovative companies, strategic and investment plans tend to look to the long-term (five years plus). And, customers and suppliers are involved from the beginning in the development of new products and production processes. Lack of shareholder engagement strongly inhibits "long-termist actions", which include the development of such close relationships with customers and suppliers. Originality/value -This paper is the first to look at the possible link between corporate governance, customer and supplier relationship management and the level of innovation and has research and practical implications.

Managing supplier relationships in a new product development context

“…Trust also increases the willingness to share information and knowledge (Bensaou, 1999;Wognum, Fisscher, & Weenink, 2002;Walter, 2003;Knudsen, 2007;Dyer & Chu, 2011;Cantista & Tylecote, 2008;Lawson, Petersen, Cousins, & Handfield, 2009;Bunduchi, 2013). Communication is acknowledged as a determinant for the performance of buyer-supplier relationship.…”

Identification and Analysis of Key Business Process Management Factors

“…There are different forms of connection from a competitive relationship to a partnership relationship. Today, companies are increasingly cooperating with their suppliers and include them in the development of new products (Cantista & Tylecote, 2008;Valle & Vazquez Bustelo, 2009). Inclusion of suppliers into innovation process is especially important today when customers' demands are constantly changing and when the product life is shortened.…”

Barriers to the upgrade cycle in a commodity process industry: evidence from the UK packaging industry

“…Research within process industries has shown how important supply chain collaborations are to R&D and innovation (Sahay, 2003;Cantista and Tylecote, 2008;Soosay et al, 2008). Indeed successful product development often depends on companies' level of understanding and experience of operating in the chain-like structures (Tottie and Lager, 1995).…”