Dependency, resource depth, and supplier performance during industry downturn |
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| Authors: | Tomi Laamanen |
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| Institution: | Institute of Strategy and International Business, Helsinki University of Technology, Otaniementie 17, P.O. Box 5500, 02015 HUT, Espoo, Finland |
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| Abstract: | This paper examines the effects of supplier dependency and resource depth on the performance of telecommunications suppliers during an industry downturn. It is shown that the R&D carried out independently by a supplier relates positively to the technological depth of the supplier's offering, which is further positively linked to performance. In contrast, the dependency of a supplier shows a negative curvilinear relationship (inverted U) to performance. The research policy implication of our finding is that, in addition to collaborative R&D, a supplier should also be encouraged to initiate its own independent R&D in order to reduce the potential distress on the business during an industry downturn. |
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| Keywords: | Collaborative R& D Supplier evolution Downturn |
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