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Pioneering Strategy in Supply Chain Relationships : How Coercive Power and Contract Completeness Influence Innovation

Title data

Bouncken, Ricarda B. ; Ratzmann, Martin ; Tiberius, Viktor ; Brehm, Alexander:
Pioneering Strategy in Supply Chain Relationships : How Coercive Power and Contract Completeness Influence Innovation.
In: IEEE Transactions on Engineering Management. (2020) .
ISSN 0018-9391
DOI: https://doi.org/10.1109/TEM.2020.3019965

Abstract in another language

Today, firms pursuing a pioneering strategy are often engaged in supply-chain relationships to benefit from external resources and to improve their innovation. However, this effort can be impeded by power asymmetries in such relationships and especially by the execution of coercive power by their partner firm. Contracts could potentially reduce this risk of opportunistic behavior. Our survey study on 778 small to medium-sized enterprises in the European packaging and medical equipment industries examines how coercive power of the partner and the contractual arrangement between firms moderate the pioneering strategy’s innovation outcomes in the short and long run. Our results confirm the negative effect of coercive power on innovation performance in both the short and long term. However, the compensating effect of rather complete contracts differs temporally. Whereas contract completeness protects against higher dependency at the beginning of the collaboration, their effect diminishes over time. In contrast, rather incomplete contracts enhance innovation performance in the long term, possibly complemented with trust.

Further data

Item Type: Article in a journal
Refereed: Yes
Institutions of the University: Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Business Administration
Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration VI - Strategic Management and Organization
Faculties > Faculty of Law, Business and Economics > Department of Business Administration > Chair Business Administration VI - Strategic Management and Organization > Chair Business Administration VI - Strategic Management and Organization - Univ.-Prof. Dr. Ricarda Bouncken
Result of work at the UBT: Yes
DDC Subjects: 300 Social sciences
300 Social sciences > 330 Economics
Date Deposited: 30 Sep 2020 09:56
Last Modified: 30 Sep 2020 09:56
URI: https://eref.uni-bayreuth.de/id/eprint/57748