Network and outsourcing for developing Innovation

Abstract

In recent years globalization, network strategies and outsourcing significantly modified the production organization of many industries. In particular, the automotive industry saw a process of vertical dis-integration, allowing automakers to take advantage from the global value chain path, especially through (i) a global relocation of their ‘non-core activities’,(ii) the access to external competencies and resources, (iii) the exchange of knowledge and competencies. However, the organizational re-configuration in the supply-chain mainly had a strong impact over suppliers in terms of requested knowledge, competencies and ability to forecast, by anticipating carmakers’ specifications mainly by devising increasingly innovative technological solutions. This paper examines four research questions: 1) the importance of collaboration for overcoming innovation development obstacles, 2) the correlation between collaboration, governance and level of collaboration, 3) the relation between R&D activities and supply chain position, and 4) how R&D activities support innovation purposes. The first two points of the schedule above discuss about the critical role of collaboration, its features and how it supports innovation development; while the other two investigate about R&D activities, their efficacy for generating innovative products/services and the critical role covered by suppliers in developing these activities. The empirical analysis is based on data accessed from the research project "SMEs' competitiveness and innovation through inter-organizational networks in the automotive industry" - led by Zirpoli, Moretti, and supported by CAMI and Anfia - through the administration of an online questionnaire to a sample of 313 Italian automotive suppliers from June to September 2014. The results indicate that in terms of collaboration the level of organizational management between partners tends to increase when the interests in developing new R&D projects, in sharing production processes and in acquiring new resource tend to be higher; on the other hand, when the costs for being innovative, also affected by lack of information and volatile demand for innovative products or services, tend to increase, even the level of trust in partnership tends to improve. Speaking of innovation, the filing of patents is positively related to an higher percentage of employees working in R&D and to improved logistics systems, supply systems and distribution systems, but it suffers as the supply chain position tends to be lower. In fact, statistical evidence also proves who holds another position in the supply chain tends to file more patents, by introducing new and/or upgraded products and by introducing new or improving its production processes.