Tingting Yan published in the Journal of Operations Management

Tingting Yan, associate professor of supply chain management at the Mike Ilitch School of Business, had a recent paper accepted in the Journal of Operations Management (JOM). The title of her article is “Supplier Innovation Value From a Buyer-Supplier Structural Equivalence View: Evidence from the PACE Awards in the automotive industry,” and the paper uses an auto industry-specific database. The article is about understanding the three types of social capital and their influence on suppliers' innovation to the original equipment manufacturer. JOM focuses on the management of operations: manufacturing operations, service operations, supply chain operations specifically publishing research that demonstrates both academic and practical relevance.  

Yan’s co-authors are Sangho Chae (Marquette Uni) and Sophie Yang (University of Texas at El Paso).     

Abstract: With the growing demand for smarter, cleaner, and safer cars, automotive original equipment manufacturers (OEMs) are increasingly seeking novel inventions from innovative new or foreign suppliers. However, not all innovative suppliers are equally valuable for an OEM. When transforming novel inventions into products, OEMs could find it challenging to work with the suppliers with whom they lack trust or have limited shared understanding. In this study, we adopt a social capital perspective to understand how three types of social capital (i.e., structural, relational, and cognitive) influence a supplier’s innovation value to the OEM. Hypotheses are tested using a unique dataset combining the supply network structure and automotive supplier innovation award. Our results suggest that it is more difficult to obtain innovation value from a new or culturally distant foreign supplier. However, we also found that suppliers whose networks overlap more with the OEM’s network are more likely to provide valuable innovations to the OEM, an effect that is stronger for culturally distant suppliers. This study contributes to the supply network and innovation literature by highlighting the importance of understanding the dyadic social capital between the buyer and supplier when evaluating innovation value of a supplier to a buying firm.