| Abstract |
Suppliers are a potential source of innovation through knowledge sharing and creation. By making full use of knowledge sharing and creation organizations can generate sustainable advantage through innovation. This research studies the role of procurement management in enabling innovation throughout the supply chain, identifying best knowledge practices and possibilities. The primary question asks: What knowledge based practices successfully facilitate innovation in supply chains. The secondary question asks: Are there regional differences in the use of these knowledge based practices between Europe, North America and Asia? This research addresses the use of knowledge based practices to successfully facilitate innovation from in the supply chain, identifying and capturing these practices, and investigates regional differences in the use of these knowledge based practices. The overlap between knowledge processes facilitating knowledge sharing and knowledge based practices enabling innovation is also explored. The importance of knowledge based innovation on cost optimization (research shows businesses spend two thirds of revenue on non-labour costs), risk management (floods, tsunamis and horsemeat scandals have all recently demonstrated supply chain risk), and new product and service offerings development to the organization, are also explored. This study is important to any organization that has a need to acquire goods and services, or outsources operations. It is important for those involved in procurement and supply chain management to have insights into the knowledge based practices that help an organization share and create knowledge with suppliers that can generate value both for the organization, its suppliers and customers. |
