Supply management capabilities in open innovation – Overcoming the lack of internal R&D resources

Majority of the studies on supplier innovation describes projects where suppliers participate in the buyer’s innovation processes by contributing additional knowledge and capabilities. This approach is not feasible for companies with low internal R&D resources. In such cases, the locus of innovation is found outside the buying firm’s boundaries. This study reports how an energy company with low R&D intensity utilizes its supply management capabilities to support the management of supplier innovation projects. We discuss the supply capabilities’ roles in different innovation process phases, and how they were organized in the studied company.