An analysis of the relationship between embedded ties and supplier innovation in the cooperative sector

Vieira, Valter Afonso; Bonifácio-da-Silva, Winsley

doi:10.1016/j.rausp.2016.07.003

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Sumário

Technology management • Rev. Adm. (São Paulo) 51 (4) • Oct/Dec 2016 • https://doi.org/10.1016/j.rausp.2016.07.003 copy

An analysis of the relationship between embedded ties and supplier innovation in the cooperative sector

Uma análise da relação entre laços imersos e inovação do fornecedor no setor de cooperativismo

Un análisis de la relación entre vínculos enraizados e innovación del proveedor en el sector de cooperativismo

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

What are the main predictors of the development of embedded ties? What are the impacts of supplier-knowledge, client-knowledge, and embedded-tie variables on the development of supplier innovation in the cooperative sector? What is the moderating role of embedded ties in the development of supplier innovation? This study brings together 126 responses from suppliers of a large agro-industrial cooperative. The results show that embedded ties have a positive impact on the development of innovation and knowledge for innovation. Furthermore, a significant association between supplier knowledge and innovation was found, which is moderated by embedded ties. Data show that embedded ties amplify the ability to develop innovation in industrial relationships.

Keywords:
Embedded ties; Innovation; Suppliers; Knowledge

Variables	Mean	Standard deviation
Supplier lifespan	22.63	18.08
Time in partnership	9.93	7.95
Competitiveness in supplier sector	8.51	1.91
Supplier flexibility	8.49	1.95
Relationship Formalization	4.52	3.88
Embedded ties	8.49	1.54
Supplier innovation knowledge	8.02	2.19
Client innovation knowledge	7.75	2.59
Supplier innovation	6.66	3.23
Client flexibility	6.24	3.20
Client investment in supplier	5.81	3.47
Client opportunism	1.48	2.18

Variables	1	2	3	4	5	6	7	8	9	10	11
1: Supplier innovation	1
2: Knowledge for supplier innovation	0.359^ p < 0.01.	1
3: Innovation knowledge from client	0.242^ p < 0.01.	0.337^ p < 0.01.	1
4: Supplier flexibility	0.226^* * p < 0.05.	0.168	0.049	1
5: Customer flexibility	0.320^ p < 0.01.	0.171	0.215^* * p < 0.05.	0.535^ p < 0.01.	1
6: Relationship formalization	0.120	0.065	-0.080	0.015	-0.055	1
7: Client investment in supplier	0.371^ p < 0.01.	0.222^* * p < 0.05.	0.431^ p < 0.01.	0.289^ p < 0.01.	0.553^ p < 0.01.	0.074	1
8: Client opportunism	0.036	-0.054	-0.032	-0.021	0.064	0.116	-0.015	1
9: Embedded ties	0.310^ p < 0.01.	0.080	0.166	0.362^ p < 0.01.	0.363^ p < 0.01.	-0.019	0.272^ p < 0.01.	0.014	1
10: Time in partnership	0.040	0.027	-0.168	-0.069	-0.097	-0.023	-0.088	-0.005	-0.130	1
11: Supplier lifespan	0.028	0.109	-0.126	-0.052	-0.002	0.015	-0.029	-0.122	-0.230^ p < 0.01.	0.322^ p < 0.01.	1
12. Competition in supplier sector	0.011	0.127	0.070	0.059	-0.080	-0.093	-0.047	-0.148	0.123	0.042	-0.134

Hyp.	Independent variable		Dependent variable	1	2	3
Direct effects
H1	Embedded ties	→	Supplier innovation	0.27^* ***** p < 0.001.	-0.15^* * p < 0.05.	-0.15^* * p < 0.05.
H2	Client opportunism	→	Embedded ties	-0.02	-0.02	-0.01
H3	Client investment in supplier	→	Supplier knowledge innovation	0.09	0.09	0.22^ p < 0.01.
H4	Client investment in supplier	→	Embedded ties	0.10	0.10	0.10
H5	Relationship formalization	→	Embedded ties	-0.01	-0.01	-0.01
H6a	Client flexibility	→	Embedded ties	0.19^† † p < 0.10.	0.19^† † p < 0.10.	0.19^† † p < 0.10.
H6b	Supplier flexibility	→	Embedded ties	0.21^ p < 0.01.	0.21^ p < 0.01.	0.22^ p < 0.01.
	Client innovation knowledge	→	Supplier innovation	0.09	0.17^* * p < 0.05.	0.17^* * p < 0.05.
	Innovation knowledge for supplier	→	Supplier innovation	0.31^* ***** p < 0.001.	-0.47^ p < 0.01.	-0.47^* ***** p < 0.001.

Covariates
	Time in partnership	→	Embedded ties	0.00	0.00
	Supplier lifespan	→	Embedded ties	-0.21^ p < 0.01.	-0.21^ p < 0.01.	-0.21^ p < 0.01.
	Competitiveness level	→	Embedded ties	0.04	0.04

Moderation
H7a	Supplier innovation knowledge × Embedded ties	→	Supplier innovation		0.04^* ***** p < 0.001.	0.04^* ***** p < 0.001.
H7b	Client innovation knowledge × Embedded ties	→	Supplier innovation		0.00	0.00

Explained variance
R²	Embedded ties			0.20	0.21	0.09
R²	Supplier innovation			0.20	0.60	0.10
R²	Innovation knowledge for supplier			0.01	0.01	-0.01

Variables	Sobel's Z test	p-Value	Direct effect	Indirect effect
Customer flexibility	2.22	0.026^* * p < 0.05.	0.33	0.24
Supplier flexibility	2.43	0.015^* * p < 0.05.	0.28	0.21
Customer investment in supplier	2.04	0.040^* * p < 0.05.	0.36	0.29
Customer opportunism	-0.16	0.860	0.05	0.06
Formalization	-0.18	0.85	0.10	0.10
Innovation knowledge for supplier	1.08	0.27	0.53	0.49
Client innovation knowledge	1.34	0.17	0.32	0.27

Departamento de Administração da Faculdade de Economia, Administração e Contabilidade da Universidade de São Paulo Avenida Professor Luciano Gualberto, 908, sala F184, 05508-900 São Paulo / SP Brasil, Tel./Fax 55 11 3818-4002 - São Paulo - SP - Brazil
E-mail: rausp@usp.br

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[1] * Corresponding author. E-mails:valterafonsovieira@gmail.com (V.A. Vieira), winsleybonifacio@hotmail.com (W. Bonifácio-da-Silva).