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Paper info: How to distinguish innovative suppliers? Identifying innovative suppliers as new task for purchasing

Title


How to distinguish innovative suppliers? Identifying innovative suppliers as new task for purchasing

Authors


Schiele Holger
University of Twente
Netherlands
Schiele Holger

Place of Publication


The paper was published at the 21st IMP-conference in Rotterdam, Netherlands in 2005.

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Abstract


For companies operating under unfavourable macroeconomic conditions, such as high wage / high taxcountries in central Europe, innovation has become a central theme to survive. If there is one thingthat has changed in innovation management during the last decade, it is the growing reliance onexternal sources of technology. As a consequence, a new task for purchasing arises, as firms need anunderstanding of which suppliers actually do have high potential contributing to the innovativeness ofthe firm and which do not. This paper focuses on the conceptual basis and derive propositions on thenature of innovative suppliers: specialised, technically competent, export-oriented firms, located in theproximity of the buyer, being embedded in a trusted and intensive relationship are identified as havinga higher probability to be the core innovative suppliers. These criteria can serve to refine strategicsourcing decision and improve communication between engineering and purchasing professionals.