Author:
Thi Mai Anh Nguyen,Hui Lei,Khoa Vu Dinh,Mehmood Sultan
Abstract
Purpose
The purpose of this paper is to investigate the relationship between relational capital and supply chain collaboration (SCC) and how this relationship relates to innovation. The authors propose a theoretical framework to illustrate the effect of relational capital on three dimensions of collaboration and radical and incremental innovation.
Design/methodology/approach
The paper has a quantitative approach. The authors conducted the survey to collect the data from 225 suppliers in the Hunan province of China. The proposed model is tested with exploratory factor analysis, confirmatory factor analysis and structural equation modelling.
Findings
The findings show that relational capital can facilitate information sharing and benefit/risk sharing when firms work together to achieve innovation. Furthermore, the results indicate that relational capital leads to radical innovation through facilitating information sharing among firms and helps in generating incremental innovation by encouraging firms to share risks and benefits with their partners.
Practical implications
The findings of this study give some suggestions for managers of the firms in terms of building their collaborative strategies. Managers should exploit relational capital to build successful and long-term collaboration. Also, through relational capital, managers can share information to create radical innovation or pool risks and share benefits with their customers to achieve incremental innovation.
Originality/value
This study provides a nuanced understanding of the relationship between relational capital, different dimensions of SCC and innovation in the context of a developing economy. Moreover, the findings provide a clearer understanding of the collaborative mechanism of relational capital and collaboration to achieve radical and incremental innovation.
Cited by
32 articles.
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