Supplier centrality, innovation value and supplier acquisition: evidence from US high-tech manufacturing firms

Abstract

PurposeThe importance of supply chain network centrality has been widely recognized in the manufacturing literature. This study extends this literature by investigating the relationship between network centrality and innovation value. “Innovation value” refers to an innovation's impact, quality and potential future contribution to technological development in a business community. This study also aims to examine whether the relationship between supplier centrality and innovation value is contingent upon supplier acquisition.Design/methodology/approachThe study hypotheses are tested with archival data collected from US high-tech manufacturing industries over the 17-year period. Negative binomial regression analysis was used to test the hypotheses.FindingsThe authors found that supplier centrality has a significant positive relationship with innovation value. Moreover, an increase in supplier acquisition activities makes the relationship between supplier centrality and innovation value more positive.Originality/valueThis study contributes to the manufacturing and technology management research by exploring the impact of supplier centrality on innovation value. The results of this study shed light on the importance of a firm's central network position in enhancing the impact and quality of innovation. This study uncovers contingencies that help realize the potential benefits of holding a central network position.