Talented suppliers? Strategic change and innovation in the UK aerospace industry

Abstract

The 1990s marked the start of extensive re‐structuring in the aerospace industry throughout the world. While the ensuing consolidation among prime contractors has been widely researched, the changes affecting the aerospace supplier base have received less attention. This exploratory study focuses on the supplier base and points to extensive re‐structuring. Unlike many earlier studies, the lean supply model was found to be a rather powerful influence, with suppliers moving away from subcontractor status and taking on the mantle of ‘talented’ suppliers. However, the bolder predictions of lean supply, in terms of the dynamics of innovation, were less apparent, although there were signs that some suppliers, who genuinely warranted the title ‘talented’, were engaging in valuable process innovations.

Learning by exporting: Lessons from high-technology SMEs

“…Recent work on the 'innovation value chain' has shown that knowledge inputs from direct collaborative relationships with a variety of sources can have a positive impact on innovation (Roper et al 2008, Ganotakis and). We therefore allow for the effect of knowledge linkages to customers or suppliers (Joshi and Sharma, 2004;Love and Mansury, 2007;Smith and Tranfield, 2005), horizontal linkages to competitors or other sectoral firms (Hemphill, 2003) and linkages to universities or other public research centres (Roper et al, 2004;Del Barrio-Castro and Garcia-Quevedo, 2005). In each case the metric used is a dummy variable indicating whether the firm had a collaborative agreement with the relevant partner.…”

From knowledge to added value: A comparative, panel-data analysis of the innovation value chain in Irish and Swiss manufacturing firms

“…More specifically, we identify five different types of knowledge sourcing activity which might shape firms' innovation: in-house R&D (Shelanski and Klein 1995); forward linkages to customers (Joshi and Sharma 2004;Love and Mansury 2007); backward links to either suppliers or external consultants (Horn 2005;Smith and Tranfield 2005); horizontal linkages to either competitors or through joint ventures (Hemphill 2003;Link, Paton, and Siegel 2005); and, linkages to universities or other public research centres (Del Barrio-Castro and Garcia-Quevedo 2005). We then allow for potential complementarities or substitute relationships between knowledge derived from different sources (Veugelers and Cassiman 1999;Love and Roper 2004).…”

Linking, leveraging and learning: sectoral systems of innovation and technological catch-up in China's commercial aerospace industry

“…Faced with the problem of trying to span an ever greater range of technologies in developing modern airliners, airframe manufacturers have relinquished responsibility for the development and manufacture of many of the larger modules and sub-systems such as wings, fuselage barrels, landing gear and avionics (Cooke and Ehret, 2009;Ehret and Cooke, 2010). Instead these modules are increasingly designed, developed and manufactured by specialist suppliers who not only undertake manufacturing but extensive research and development (McGuire et al, 2010;Smith and Tranfield, 2005). These specialist suppliers are much more than mere subcontractors called upon to manufacture components on a 'build-to-print' basis (Smith and Tranfield, 2005).…”

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