Corporate Innovation Along the Supply Chain

• 成果类型: Article
• 署名作者: Chu, Yongqiang; Tian, Xuan; Wang, Wenyu
• 署名单位: University of South Carolina System; University of South Carolina Columbia; Tsinghua University; Indiana University System; IU Kelley School of Business; Indiana University Bloomington
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2017.2924
• 发表日期: 2019
• 页码: 2445-2466
• 关键词: geographic proximity; INNOVATION; supply chain

摘要

In this paper, we document a positive effect of supplier-customer geographic proximity on supplier innovation. To establish causality, we explore plausibly exogenous variation in proximity caused by customer relocations. The positive effect of supplier-customer proximity on supplier innovation is stronger when customers are more innovative themselves, when suppliers and customers are closer in technological space, and when customers' demand accounts for a larger fraction of suppliers' total sales. These findings suggest that the feedback channel and the demand channel are likely underlying mechanisms through which supplier-customer proximity affects supplier innovation. Overall, our paper sheds new light on the real effect of supplier-customer relationship on corporate innovation.