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Market orientation and innovation in supply chains : supplier's

impact on customer satisfaction

Citation for published version (APA):

Kibbeling, M. I., Bij, van der, J. D., Weele, van, A. J., & Benedetto, Di, A. C. (2009). Market orientation and innovation in supply chains : supplier's impact on customer satisfaction. In Proceedings of the 4th Beta

conference 2009 Societal challenges for operations management, September 30 - October 1, 2009, Enschede

Document status and date: Published: 01/01/2009

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Market Orientation and Innovativeness in Supply Chains: Supplier’s Impact on Customer Satisfaction

Mirjam Kibbeling

ABSTRACT

Firms obtain competitive advantage through managing internal competences as well as through managing their supply chains. Although various research streams have studied the use of internal resources and buyer-supplier relationships, limited research clarifies the impact of supplier resources on downstream customer satisfaction. In this study the authors focus on three parties along a supply chain: the focal firm, a major supplier and a major customer of the focal firm (end-user). The authors take a resource dependence perspective to assess how supplier’s end-user orientation and innovativeness influence downstream

activities at the focal firm and end-user satisfaction. The results drawn from a survey of 86 matched chains contribute to a supply chain perspective in market orientation and innovation suggesting the following: firstly, end-user satisfaction is driven by focal firm’s

innovativeness which in turn is explained by supplier’s innovativeness. Secondly, market orientation has typically within-firm effects, while innovativeness has effects beyond the boundaries of the firm. These results suggest that firms create value for their customer through internal market orientation efforts and external supplier’s innovativeness.

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