How to leverage the innovation capabilities in your supply chain through organisational climate

<p dir="ltr">In light of accelerating digital disruption and rising geopolitical tensions, innovation remains a key success strategy among global multinational firms. As few firms are able to continuously turn internal ideas into new offerings, an increasing number are turning to their supply networks as a vital source of external knowledge and innovation outcomes. In contrast to investing in internal research and development (R&D) capabilities, today’s competitive edge often comes from learning within firms and from suppliers. Firms with a broad and diverse supply base benefit from better access to information and knowledge which can accelerate the development of product and service innovations. But even firms with similar supply network structures achieve dramatically different innovation outcomes. What sets the high-innovation performers apart remains a key question among CEOs and thought leaders. Recent research suggests a critical but underappreciated internal factor: the “organizational climate” of buying firms.</p>