Zooming in and out : the strategic management of innovation across multiple levels of complex supply networks

Abstract

Supply chains form complex supply networks that constitute various types of actors interconnected through numerous ties at different levels of interaction. These ties channel knowledge and resources essential for effective innovation development and implementation. The enduring capacity inherent in supply networks can potentially foster the development of breakthrough innovations and process improvements that create sustainable value for the benefit of all stakeholders. The realization of this potential is often constrained by the intrinsic complexity and dynamism of the supply networks posing challenges to their holistic assessment and strategic coordination.

The research presented here addresses the main question of how organizational and network issues shape innovation processes and outcomes across multiple levels of supply networks. It adopts a complexity perspective that captures the intrinsic nature of innovation processes occurring across and shaped by dynamic supply networks. The research employs a multimethod approach encompassing a systematic literature review, a bibliometric network analysis, an in-depth case study, and a combination of machine learning techniques: topic modeling and the ego-exponential random graph model. The analyzed data incorporate information from two real-life networks: a supply network of manufacturing companies located in Northern Europe and an aerospace and defense supply network spanning multiple geographical locations.

The exploratory stage of research discovers the innovation complexities existing at each level of supply networks and offers strategies for navigating these complexities. Furthermore, the results of analytical the analysis reveal that firms adopt distinct roles based on a complex combination of structural network and internal innovation effects. The derived role-generative processes evince considerable heterogeneity in firm behaviors, further shaping the supply network. The research concludes with a further conceptualization of the complex supply network as an integral part of a larger open system and emphasizes the importance of innovation in promoting sustainable development and value creation.