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SHADES OF THE INNOVATION-PURCHASING FUNCTION — THE MISSING LINK OF OPEN INNOVATION

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International Journal of Innovation Management
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This paper seeks to instigate a new area of research in the Early Purchasing Involvement (EPI) literature around the question: How should a Purchasing function evolve in order to identify and capture innovation in the supplier market? Particularly, we attempt to characterise the specificities of the Innovation-Purchasing function, an emerging function acting in the fuzzy-front-end of projects. The contribution of this paper is a reification of the role of this function in an Open Innovation context, through the description of Early Purchasing Involvement in the Innovation (EPI²) agenda. For that, we collected data through an internal benchmarking study within a multinational/multidivisional firm of the automotive sector. Our study reveals similarities and differences between the observed practices of what we call EPI² and the more classical EPI activities in a New Product Development (NPD) context. This study provides a model that can help practitioners and raises some propositions to test in new research.
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SHADES OF THE INNOVATION-PURCHASING
FUNCTION THE MISSING LINK
OF OPEN INNOVATION
ROMARIC SERVAJEAN-HILST
*
,
and RICHARD CALVI
*
Management Research Center (CRG-I3),
Ecole Polytechnique CNRS Universit
eParis,
Saclay 828, Boulevard des Mar
echaux 91762 Palaiseau, France
IREGE Laboratory, Universit
eSavoie Mont Blanc,
2, Route de Saint-Cassin, IAE SMB,
Bat 23, 73011 CHAMBERY, France
romaric.servajean-hilst@polytechnique.edu
Published 28 April 2017
This paper seeks to instigate a new area of research in the Early Purchasing Involvement
(EPI) literature around the question: How should a Purchasing function evolve in order to
identify and capture innovation in the supplier market? Particularly, we attempt to char-
acterise the specicities of the Innovation-Purchasing function, an emerging function
acting in the fuzzy-front-end of projects. The contribution of this paper is a reication of
the role of this function in an Open Innovation context, through the description of Early
Purchasing Involvement in the Innovation (EPI
2
) agenda. For that, we collected data
through an internal benchmarking study within a multinational/multidivisional rm of the
automotive sector. Our study reveals similarities and differences between the observed
practices of what we call EPI
2
and the more classical EPI activities in a New Product
Development (NPD) context. This study provides a model that can help practitioners and
raises some propositions to test in new research.
Keywords: Early purchasing involvement; open innovation; organisation of purchasing
function.
Introduction
During the last decade, rms have multiplied their collaborative innovation
programs to respond to both the acceleration of innovation and increase in
Corresponding author.
International Journal of Innovation Management
Vol. 22, No. 1 (January 2018) 1850008 (30 pages)
© World Scientic Publishing Europe Ltd.
DOI: 10.1142/S1363919618500081
1850008-1
... The role of the purchasing function is then that of a boundary-spanning function for OI (Carr and Pearson, 2002;Lakemond et al., 2006), facilitating the absorption of external knowledge (Picaud-Bello et al., 2022) and enabling connection to technical expertise (Suurmond et al., 2020). For example, purchasers in the automotive sector are identifying, selecting and contracting innovative suppliers (startups, laboratories, experts and existing suppliers) that contribute to the development of new projects for the firm and their role extends to facilitate the communication between external and internal stakeholders (Servajean-Hilst and Calvi, 2018). Even if some express doubts (Atuahene-Gima, 1995;Chesbrough and Euchner, 2011;Herzog, 1974;Maniak and Midler, 2008), the role of purchasing in the development of OI is thus becoming more important and better recognised within organisations Servajean-Hilst and Calvi, 2018). ...
... For example, purchasers in the automotive sector are identifying, selecting and contracting innovative suppliers (startups, laboratories, experts and existing suppliers) that contribute to the development of new projects for the firm and their role extends to facilitate the communication between external and internal stakeholders (Servajean-Hilst and Calvi, 2018). Even if some express doubts (Atuahene-Gima, 1995;Chesbrough and Euchner, 2011;Herzog, 1974;Maniak and Midler, 2008), the role of purchasing in the development of OI is thus becoming more important and better recognised within organisations Servajean-Hilst and Calvi, 2018). ...
... The purchasing function has been recognised for more than 40 years as a contributor to the development of new products for their companies (Farmer, 1981). Despite some voices indicating the negative role of purchasing in innovation (Atuahene-Gima, 1995;Chesbrough and Euchner, 2011;Herzog, 1974;Maniak and Midler, 2008), the positive role that this function can have on innovation performance is increasingly demonstrated in the procurement literature (Constant et al., 2020;Johnsen, 2009;Lakemond et al., 2001;Melander and Lakemond, 2014;Patrucco et al., 2017;Wynstra et al., 1999Wynstra et al., , 2003 and more recently also in the innovation management literature D'Antone and Santos, 2016;Picaud-Bello et al., 2022;Schiele, 2010;Schiele et al., 2021;Servajean-Hilst and Calvi, 2018). Purchasing can be considered "a critical cornerstone for adapting innovation from suppliers and stewarding it through the product life cycle" (Luzzini et al., 2015, p. 110). ...
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This study aims to enhance our understanding of the relationship between team innovation climate within the purchasing team and the level of purchasing involvement in open innovation (OI) initiatives. Previous research in psychology and management has documented the impact of team climate on innovation capacity. Furthermore, the purchasing function has been recognised as a bridge between internal and external resources in OI. However, to date, research has not examined the link between the team innovation climate and the role of the purchasing function in OI initiatives. To address this gap, we studied a sample of 258 purchasing teams across industries in France based on a self-audit and questionnaire using established team innovation climate scales. From our analyses, four dimensions of the purchasing team climate towards innovation emerge: the team cohesiveness, the team creativity, the leader support for innovation and the institutional support for innovation. We subsequently conduct regression and necessary condition analysis. Our results show that institutional support is both necessary and positively related to involvement. Moreover, purchasing’s ability to contribute to inbound OI is constrained by each of the four dimensions of the team innovation climate, to various extents. Our work thereby elucidates the individual elements and the collective impact of the team innovation climate that enable the exploitation of the innovative potential of suppliers through purchasing’s bridge function between external and internal innovation actors providing new insights into the human side of OI at team level. Managerial Highlights •Team innovation climate plays an important role in the management of open innovation. •Team innovation climate influences the purchasing team’s involvement in open innovation projects of its firm i.e. the way its open innovation is managed. •There are four dimensions affecting the purchasing team innovation climate: institutional support, team leader support, team creativity and team cohesiveness. •High levels of involvement of the purchasing function do not occur without at least medium levels of these four dimensions. •Only institutional support is directly and positively related to the increasing level of involvement of purchasing in open innovation initiatives.
... Moreover, firms often need to invest significant resources to explore alternatives outside their existing supply markets, which carries inherent risks when entering relationships with suppliers unfamiliar with the buyer's industry, products, or services. Unfortunately, there is limited knowledge on guiding the supplier selection process to identify and harness market innovation in this evolving landscape, as empirical studies on sourcing from unconventional innovation arenas are scarce (Homfeldt et al. 2017;Servajean-Hilst and Calvi 2018;Kurpjuweit et al. 2021;Arvidsson et al. 2022). ...
... Previous research has highlighted a research gap concerning the role of supply management in the context of discontinuous, radical, and disruptive technology (Calvi et al. 2018). Studies have found that only a few companies have a formalized approach to identify or select suppliers for high technology (Goldberg and Schiele 2018;Kurpjuweit et al. 2021). ...
... Consequently, our research contributes to the existing literature on sourcing disruptive innovation (e.g. Schiele 2010;Finger et al. 2014;Calvi et al. 2018) and procurement from startups by elucidating the roles and capabilities of supply management. To empirically explore these dynamics, we conduct a comparative analysis of high technology procurement at two different automobile manufacturers. ...
... Les activités des acheteurs sont reconnues pour leur importance stratégique dans la réalisation des performances à long terme d'une entreprise et dans la résolution des problèmes de développement durable (Touboulic et Walker 2015). Alors qu'il est usuel de dire que les acheteurs occupent un rôle clé d'interface entre l'entreprise et ses marchés amont (Servajean-Hilst et Calvi 2018), il semble opportun de connaître les rôles, les objectifs et les compétences des acheteurs afin de répondre aux enjeux liés à l'éco-innovation. ...
... J. Chen et Paulraj 2004 ;Rozemeijer, 2008). D'autres auteurs considèrent que le degré de maturité des achats (Schiele et al. 2021), la capacité à développer des collaborations efficaces avec les autres fonctions (Viale 2019), l'implication amont des achats (Schiele et al. 2021), la qualité des relations fournisseurs (Monczka et al. 2015), l'intégration de fournisseurs (Monczka et al. 2015 ;Servajean-Hilst et Calvi 2018) comme étant essentiels pour favoriser le succès de leur contribution dans le contexte de l'innovation. ...
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Companies committed to sustainable resource management are sharing their eco-innovation ideas with suppliers. However, in-depth exploration of the actual implementation of eco-innovation remains little studied. This research therefore enriches the understanding of the eco-responsible supply chain by examining the role of the buyer in eco-innovation. The qualitative study, based on 11 case studies of companies that have implemented eco-innovation projects, classifies activities into strategic and operational management categories. It identifies the various roles of the buyer, such as eco-ideation and eco-watch, by proposing new skills sorted according to a pre-established grid in the literature. The results underline the pivotal role of the buyer in implementing and stimulating eco-innovation. Les entreprises, engagées dans une gestion durable des ressources, partagent leurs idées d'éco-innovation avec les fournisseurs. Cependant, l'exploration approfondie de la mise en œuvre effective de l'éco-innovation reste peu étudiée. Ainsi, cette recherche enrichit la compréhension de la Supply Chain éco-responsable en examinant le rôle de l’acheteur dans l'éco-innovation. L'étude qualitative, fondée sur 11 cas d'entreprises ayant mis en place des projets d'éco-innovation, procède à une classification des activités dans des catégories de gestion stratégiques et opérationnelles. Elle identifie les divers rôles de l'acheteur, tels que l'éco-idéation et l'éco-veille, en proposant des compétences nouvelles et triées selon une grille pré-établie de la littérature. Les résultats soulignent ainsi le rôle pivot de l'acheteur dans la mise en œuvre et dans la stimulation de l’éco-innovation.
... Questionnements de recherche. Les publications citées ci-dessus témoignent ainsi de liens entre les dimensions organisationnelles, stratégiques et opérationnelles de la fonction achats, pour tenir compte du développement durable et contribuer au processus global d'innovation (Servajean-Hilst et Calvi 2018;Viale 2018). En effet, la fonction achats est progressivement passée d'un rôle traditionnel de réduction des coûts et des délais à un rôle plus collaboratif de création de valeur et de capture d'innovation (Bellière-Lottier et Poissonnier 2021; Calvi et al. 2014;Calvi, Paché, et Jarniet 2010;Tréhan 2014), ce qui atteste d'une évolution de simple fonction opérationnelle vers une fonction plus stratégique de management des achats et des approvisionnements. ...
... The skills described in current job ads appear to be almost antagonistic ( Innovation and sustainability in the supply chain are pursued by people with different, partially antagonistic approaches and targets. In fact, many firms have established their own a department for sustainability, which tries to work on the greening of the supply chain, while the innovation requirement is fulfilled by each purchaser, or alternatively there are special departments for purchasing innovation, which are also known procurement engineering or advanced sourcing departments (Calvi, Pihlajamaa, & Servajean-Hilst, 2020;Lock & Seele, 2016;Schiele, 2010;Servajean-Hilst & Calvi, 2018). ...
... L'habilitation à diriger des recherches est tout autant un sésame pour accompagner de jeunes chercheurs qu'un exercice qui m'a permis de mettre à plat mon parcours, mes contributions mais aussi mon approche de la recherche en sciences de gestion. Cette démarche réflexive de plusieurs mois, accompagnée par le regard bienveillant et challengeant du professeur Richard Calvi, conclut mes premières années de chercheur et ouvre les suivantes, avec plus encore de collaborations et d'innovations en perspective.Langlois, BenMahmoud-Jouini et Servajean-Hilst, 2023 ;Servajean-Hilst, 2017 ;Servajean-Hilst et al., 2020 ;Servajean-Hilst et Calvi, 2018) ...
Thesis
Over the past few decades, innovation collaborations have significantly expanded across all sectors of activity. Vertical innovation collaboration, specifically between clients and suppliers, is the most prevalent form. However, despite this growth, practitioners face difficulties in managing these collaborations, and academic literature emphasizes the need for further knowledge in this field. In this context, our research has focused on two areas: the management of innovation collaborations from a relational perspective and the emerging role and impact of the Purchasing-Innovation function. By employing a diverse range of qualitative and quantitative methodological approaches with a praxeological orientation, these studies have yielded several conceptual and practical contributions. Firstly, they enhance our understanding of the dynamics within vertical innovation collaborations by providing a conceptual model and identifying critical operating modes for their success. Additionally, they have enabled the characterization of the novel role of the ambidextrous intermediary in collaborative innovation, namely the innovation-oriented buyer, and shed light on how they establish their legitimacy.
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