Innovation in buyer-supplier relationships : an international study of the wood industry
Abstract
Abstract
This thesis is an international study of wood impregnation and fire protection in the wood
industry and is the first of a series of research articles related to this topic. The aim of the
thesis is to close the gap in the literature regarding the nature of buyer-supplier relationships
in the wood impregnation industry and how these relationships affect product and process
innovation. This thesis is based on data collected from the USA, Central Europe, and
Scandinavia, with a focus on the chemical supplier side of these relationships. Data were
collected through semi-structured interviews of 14 managers in predefined roles. The sample
frame of three supplier companies was selected with the help of industry experts based on set
criteria. Customers of each supplier were chosen based on snowballing methods through
dialogs with the chemical suppliers.
The results of this research demonstrate that both the suppliers and customers view these
relationships as beneficial. Managers noted that the industry has been rather conservative and
focused on research and development (R&D) for a long time. However, over the past several
years, the wood industry has shifted toward more market-driven innovation. This study’s
findings indicate that buyer-chemical supplier relationships in the wood industry are often
informal and based on handshake agreements instead of formal contracts. The level of
formality depends on the duration of the relationship and the level at which the two
organizations interact with each other. The findings also indicate that the main aim of both
parties is to create a long-term relationship. Findings from Scandinavia, Central Europe, and
the USA indicate that customers affect innovation by providing suppliers with market
intelligence about end-user needs for product and process innovation. A small portion of
customers in the wood industry focus on performing innovation on their own, and they mainly
conduct process innovation. Chemical suppliers are the main drivers of product innovation in
their relationships with the wood industry, but these suppliers depend on selected customers
to test new product innovations in the customers’ full-scale facilities. The key findings of this
thesis have managerial implications and suggest topics for further research.