Competition and Cooperation: Key to Boosting Supplier Involvement in Innovation
This article explores how manufacturers use different strategies to get suppliers involved in creating new products. They looked at data from the Japanese car industry over 22 years. The results show that having some competition among suppliers can be good, but too much can be bad. Also, if a manufacturer owns a lot of a supplier's shares, it can make competition less important. The best strategy seems to be having a balance of competition and ownership to get suppliers more involved in creating new products.