The impacts of organizational learning capacities on relationship-specific innovations Evidence from the global buyer-supplier relationship

Abstract

Purpose: Organizational learning is a critical factor in generating firm innovation. While the firms are working with global business partners, not only does their absorptive learning capacity (ALC) with business partners play an important role in generating innovation from the inter-partner firm relationship, but their joint learning capacity (JLC) does as well. However, little research has simultaneously examined absorptive and JLC on innovation in global supply chain relationships. The paper aims to discuss this issue. Design/methodology/approach: Drawing on the knowledge-based view, inter-partner learning theory and resource dependence theory, the current study investigates the effects of two organizational learning capacities on relationship-specific innovation: ALC (firm-level) and JLC (relationship level). In addition, a firm’s focus on exploitation/exploration strategy and supplier dependence is further incorporated into the study as moderators. Moreover, solutions to endogeneity issues are discussed and reported due to the usage of survey data. The model of this study was tested using data collected from 190 electronics firms in Taiwan as an emerging market. Findings: The findings of this research reveal that JLC in the presence of absorptive capacity positively influences relationship-specific innovation. Furthermore, the exploitation focus of a firm positively moderates the effects of both absorptive and JLC on relationship-specific innovation. However, supplier dependence negatively moderates the effect of JLC. Research limitations/implications: The research provides some theoretical implications for learning and innovation generation in global supply chains. Practical implications: The paper provides some managerial implications for how to manage innovations in the global supply chain relationships. Originality/value: This paper fulfills an identified need to study how innovation generation can be better managed in global supply chain contexts. © 2019, Emerald Publishing Limited.