Global supply chain relationship, local market competition, and suppliers’ innovation in developing economies
This article examines how suppliers’ innovation in developing countries is affected by the interaction of vertical global supply chain relationships and horizontal market competition structure. We devised a bidirectional dynamic game model consisting of competing suppliers in a developing economy an...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Vilnius Gediminas Technical University
2021-12-01
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| Series: | Technological and Economic Development of Economy |
| Subjects: | |
| Online Access: | https://journals.vgtu.lt/index.php/TEDE/article/view/15335 |
| _version_ | 1818902695490093056 |
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| author | Lei Ding Gamal Atallah Guoqiang Sun |
| author_facet | Lei Ding Gamal Atallah Guoqiang Sun |
| author_sort | Lei Ding |
| collection | DOAJ |
| description | This article examines how suppliers’ innovation in developing countries is affected by the interaction of vertical global supply chain relationships and horizontal market competition structure. We devised a bidirectional dynamic game model consisting of competing suppliers in a developing economy and an overseas buyer in a developed economy for innovation decision process in a suppliers cluster. Our research shows that global supply chain relationship is the primary factor to influence local cluster innovation and profit. Total innovation of the cluster is proved to be greater in global supply relationship with a powerful buyer than a non-powerful buyer. However, suppliers in a powerful buyer chain are not able to capture the value they created from innovation. Local competition structure plays its secondary role on cluster innovation through interaction with vertical chain relationship. Based on prior innovation research on either vertical supply chain power dynamics or horizontal competition intenseness, our study contributes as the first to employ a theoretical suppliers’ innovation model for an integrative analysis encompassing both global and local power dynamics.
First published online 03 December 2021 |
| first_indexed | 2024-12-19T20:39:44Z |
| format | Article |
| id | doaj.art-38e0b82c95c941208b5243b691687b0b |
| institution | Directory Open Access Journal |
| issn | 2029-4913 2029-4921 |
| language | English |
| last_indexed | 2024-12-19T20:39:44Z |
| publishDate | 2021-12-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Technological and Economic Development of Economy |
| spelling | doaj.art-38e0b82c95c941208b5243b691687b0b2022-12-21T20:06:26ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212021-12-0110.3846/tede.2021.15335Global supply chain relationship, local market competition, and suppliers’ innovation in developing economiesLei Ding0Gamal Atallah1Guoqiang Sun2Faculty of Management Science and Engineering, Shanxi University of Finance and Economics, Taiyuan, China Department of Economics, University of Ottawa, Ottawa, CanadaFaculty of Management Science and Engineering, Shanxi University of Finance and Economics, Taiyuan, ChinaThis article examines how suppliers’ innovation in developing countries is affected by the interaction of vertical global supply chain relationships and horizontal market competition structure. We devised a bidirectional dynamic game model consisting of competing suppliers in a developing economy and an overseas buyer in a developed economy for innovation decision process in a suppliers cluster. Our research shows that global supply chain relationship is the primary factor to influence local cluster innovation and profit. Total innovation of the cluster is proved to be greater in global supply relationship with a powerful buyer than a non-powerful buyer. However, suppliers in a powerful buyer chain are not able to capture the value they created from innovation. Local competition structure plays its secondary role on cluster innovation through interaction with vertical chain relationship. Based on prior innovation research on either vertical supply chain power dynamics or horizontal competition intenseness, our study contributes as the first to employ a theoretical suppliers’ innovation model for an integrative analysis encompassing both global and local power dynamics. First published online 03 December 2021https://journals.vgtu.lt/index.php/TEDE/article/view/15335innovationclusteringglobal supply chainmarket competitiongame theory |
| spellingShingle | Lei Ding Gamal Atallah Guoqiang Sun Global supply chain relationship, local market competition, and suppliers’ innovation in developing economies Technological and Economic Development of Economy innovation clustering global supply chain market competition game theory |
| title | Global supply chain relationship, local market competition, and suppliers’ innovation in developing economies |
| title_full | Global supply chain relationship, local market competition, and suppliers’ innovation in developing economies |
| title_fullStr | Global supply chain relationship, local market competition, and suppliers’ innovation in developing economies |
| title_full_unstemmed | Global supply chain relationship, local market competition, and suppliers’ innovation in developing economies |
| title_short | Global supply chain relationship, local market competition, and suppliers’ innovation in developing economies |
| title_sort | global supply chain relationship local market competition and suppliers innovation in developing economies |
| topic | innovation clustering global supply chain market competition game theory |
| url | https://journals.vgtu.lt/index.php/TEDE/article/view/15335 |
| work_keys_str_mv | AT leiding globalsupplychainrelationshiplocalmarketcompetitionandsuppliersinnovationindevelopingeconomies AT gamalatallah globalsupplychainrelationshiplocalmarketcompetitionandsuppliersinnovationindevelopingeconomies AT guoqiangsun globalsupplychainrelationshiplocalmarketcompetitionandsuppliersinnovationindevelopingeconomies |