The Impact Of Innovation Orientation In Its Performance:the Role Of Supply Base Management

With the rapid development of science and technology and the ever-changing business environment,innovation has become the core engine for enterprises to acquire and maintain market leadership,and "Enterprises rarely rely on their own innovation"(Edquist,1997):innovation is the product of the network.The paradigm of open and collaborative innovation represents an external resource(e.g.knowledge,technology,human resources etc.)that may be lacking in the core enterprise by accessing it to support innovative approaches(Chesbrough and other,2006;Pisano and Verganti,2008).A panel study involving the world's largest R&D investors revealed in 2010.By early 2010,the number of enterprises that relied heavily onexternal support for innovation had increased to 85%(Roberts,2001).So far,the number of enterprises relying on external innovation has increased unabated,such as Procter&Gamble,IBM,Intel,etc.These excellent enterprises are typical examples of innovation that rely on external resources.In this case,although scholars in previous literature do not agree with each other,However,the participation of suppliers and procurement departments in the innovation process has been recognized as a potential source of sustainable competitive advantage.Vendors play a vital role in improving the performance of innovation in an enterprise.They play a crucial role in improving the performance of enterprise innovation(e.g.,Clark,1989;Handfield,Ragatz,Petersen,and Monczka,1999).They are familiar with the business of customers and the typical knowledge transfer mechanism from supplier to customer.Vendors'contributions take on various forms(Walter,2003).Such as providing innovative components and products,process technology,or joint product development project(Bonaccorsi and Lipparini,1994)etc.Therefore,supplier network is an important source of innovation for manufacturing enterprises.The supplier group that is important to the core enterprise in supplier network is the part of supplier that is actively managed by core enterprise,that is supply base(Choi and Krause,2006).The role and integration of downstream entities(such as customers)and upstream partners(such as supply base)have been extensively studied,although supplier involvement can be expected to have a significant impact(e.g.,Ragatz et al.,2002),upstream parts of manufacturing enterprise innovation receive rarely concern.At the same time,introducing innovation from outside does not mean that enterprises abandon internal innovation.According to resource-based theory and dynamic capability theory,innovation orientation is an important strategic asset of an enterprise.By deploying the resources of the enterprise,guide the innovation activities within the scope of the enterprise.On the basis of a brief review of the previous researches on supply-base management and innovation-oriented management,Based on resource-based theory and dynamic capability theory,it helps enterprises understand the theoretical exploration and path impact of supply-based management and innovation-oriented coordination on innovation performance,exploring supply-based management through supply-based rationalization and information sharing.Establish long-term relationship and supplier development to enhance the mechanism of innovation orientation on innovation performance,and then construct the overall conceptual model of the relationship among supply-based management,innovation orientation and innovation performance,and put forward the research hypothesis.This paper carries out a large-scale questionnaire survey,analyzes 256 valid samples by using SPSS and AMOS software,and empirically tests the research hypotheses and analyzes and discusses the results of the research.This study discusses how to manage the external supply base and adjust the internal strategic innovation orientation to realize the enterprise innovation performance.It provides a scientific theoretical reference for the enterprises how to use the external potential resources to obtain the competitive advantage in innovation.The results show that the supply-base structure,long-term relationship focus and supply-base collaboration can directly enhance the innovation performance of manufacturing enterprises.Supply-based collaboration plays a regulatory role in the process of innovation performance of innovation-oriented enterprises and promotes enterprises to improve innovation performance.The research results provide practical significance for guiding enterprises to implement supply-based management to stimulate enterprises to achieve innovative performance.Enterprises should attach importance to the proper management of the supply base,by reducing or increasing the size of the supply base,by encouraging or developing the supply base members,and by integrating the supply base members into the enterprise's innovation process,such as a series of management measures.So that it can provide knowledge and resources to improve the innovation performance of manufacturing enterprises.At the same time,we should also pay attention to the relationship management with the supply base,and strive to create a high trust,mutual dependence,continuous and stable cooperative atmosphere between the two sides.Positive investment in relational assets makes it a complementary asset,and then improves the innovation ability and performance of enterprises.