Yusoon Kim

Buyer-supplier embeddedness and patterns of innovation

Purpose – The purpose of this paper is to describe different ways in which a buyer and supplier can be embedded in a dyadic relationship and how these differences influence patterns of inter-firm innovation activities and outcomes. Specifically, to address the relative paucity of theoretical work on how dyadic configurations influence parties’ joint innovation behavior, this study examines how different buyer-supplier embeddedness (BSE) configurations change the four choices that pertain to the levels of involvement buyers and suppliers exhibit in inter-firm innovation activities. These choices concern the processes buyers use to engage suppliers; the scope of efforts in each party; the locus of effects determining the beneficiaries; and the extent to which parties disclose private innovations within the relationship. Design/methodology/approach – Drawing on social embeddedness literature, the authors conceptualize dyad level, BSE in two dimensions: relational and structural. The relational dimension desc...

Tie Strength and Value Creation in the Buyer-Supplier Context A U-Shaped Relation Moderated by Dependence Asymmetry

This study integrates two disparate genres within tie-strength literature into one model to investigate the mechanisms for value creation in the buyer-supplier context. This research brings together the opposite ends of the tie-strength continuum: the “weak ties,” which are instrumental in tapping into novel ideas and emerging technologies, and the “strong ties,” which promote joint resource investments and capability development. By doing so, we bring salience to the existence of “intermediate ties” (i.e., the ties of moderate strength) and their implications for value creation. Even though the intermediate ties are likely most common in the buyer-supplier context, they have been given short shrift in the literature. We predict a U-shaped relation, where weak ties and strong ties are more effective than intermediate ties in value creation. Furthermore, we explore the moderating role of dependence asymmetry. Our hypotheses are tested using survey data from a major global automaker and its North American suppliers. The results demonstrate that both the weak and strong buyer-supplier ties lead to higher value creation, whereas intermediate ties do not increase value creation. Also, the study illustrates that, overall, asymmetric buyer-supplier ties show diminished value creation, and this moderating effect is particularly pronounced for intermediate ties.