Supplier-driven innovation 3 (supplier perspective)

Question 1

What is it that the buying firm wants to have from the suppliers?

Answer 1

Resources:

• Production capacity
• Time with people
• Man hours
• Knowledge

Question 2

What should buyers focus on when trying to attract a suppliers willingness to collaborate?

Answer 2

Buyers should be future oriented rather than focusing on short-term factors when trying to improve status. They should keep track on suppliers perception of customers. They should be aware and work to enhance their external image.

Question 3

What two inducements in the customer preffered model can enhance supplier perception of customers? (two important)

Answer 3

early supplier involvement and relational reliability

• Supplier involvement: Bringing supplier in an early stage, you will have the chance to impact the product and improve capabilities
• Relational reliability: keep promises, gain trust, reduces opportunistic behavior and ex ante, ex post transaction cost.

Share of sales (Has no effect)
Lenght of relationship (has no effect)

Question 4

What is a preffered customer?

Answer 4

Reflects a supplier’s perception of the attractiveness of an exchange relationship with a customer in relative to those other customers they provides goods or services to.

Question 5

What defines technology access?

Answer 5

Technology access: The extent to which a supplier willingly invests in and shares new technologies without the promise of future orders – advances the buying firm’s innovative capabilities

Last step in the preffered customer model

Question 6

What is social Exchange theory (SET)?

Answer 6

About exchanging favors or services, but it can be uncertain because it is based on obligation, gratitude and trust.

Question 7

When is a buyer/customer attractive?

Answer 7

In a buyer-supplier relationship, a buyer is only attractive to the extent that they provide rewards that are important to the other party.

Question 8

What is the Preffered customer model by Ellis, Henke & Kull about?

Answer 8

This model is about how suppliers proactive are sharing knowledge with customers. It is called preferred customer model, because we look at it from a supplier perspective.

Question 9

What model decribes what a customer should do and not do to increase suppliers willingness to Invest and share innovative ideas and Technologies?

Answer 9

The model by Henke, J. W. and Zhang about increasing suppliers-driven innovation by maximize collaborative activities and minimize competitive activities.

Question 10

What activities discourage supplier innovation (competitive activities that cause negative impact)?

Answer 10

1. Conflicting objectives:
   E.g. when two departments don’t reconcile their differing objectives when developing new products. Purchasing wants to lower the cost as much as possible where engineering wants to make quality and long-lasting products.
2. Excessive/late engineering changes:
   Frequent and late changes can have negative financial impact on suppliers and cause resentment (bitterhed) towards the customer.
3. Price reduction pressure:
   Price reduction demands often end up in that both parties are dissatisfied. The suppliers often conclude that the customer isn’t truly committed.

Question 11

What encourage supplier innovation (customer collaborative activities that cause positive impact)?

Answer 11

1. Supplier involvement:
   Involving suppliers in the company’s processes, especially product development.
2. Customer communication:
   Demonstrating openness and sharing information with suppliers in a timely manner.
3. Customer assistance:
   Supplier look for help and support from the customer because they don’t have the financial means or technological capabilities to comply (imødekomme). Working with suppliers to help them improve their competitiveness in both cost and quality. Buyers often seems more attractive when suppliers ressources are scarce.

Question 12

How can suppliers determines which customers to allocate ressources to? (tip: thnik about their values)

Answer 12

The supplier wants the relationship that can give them the best competitive advantages, but their are some overall values that suppliers would assess. 
E.g. 
Overall relation and communication
Technology 
Efficiency 
Finance
Ethical behavior
Risk and uncertainty
Market factors
Cooperate image

Question 13

What is buyer-supplier working relations? (tip: Longitudinal model)

Answer 13

Buyer-supplier working relations: Communication, trust and acceptable long-term return have a strong positive effect on supplier attitude towards co-innovation.

Question 14

How is it difficult for customers to achieve status even though they are increasing the attractiveness?

Answer 14

Due to circumstances that are difficult to change and out of customers hands like Size, Growth potential, etc.

Question 15

What role does dependency have on suppliers attitudes towards co-innovation?

Answer 15

If the buyer is very dependent to the supplier, why bother sharing knowledge and invest in new technology. (negative in this study)

If the supplier is dependent on the buyer, it will turn out in willingness to invest and share technology (positive)

Question 16

What effect does supplier involvment in buyer’s NPD process has?

Answer 16

Supplier involvement in buyer’s NPD process has positive effect on performance.