Effects of Learning from Distributors on Manufacturers’ Exploitation and Exploration Innovation Strategies in Food and Beverages Industry

Abstract

The relevance of innovation as source of competitive advantage is clearly justified in the literature (Adner and Kapoor, 2010; Song and Thieme, 2009). In particular, knowledge, as well as all items related to organizational learning, represents a main factor contributing to the innovation success (i.e., Song and Parry, 1997). In this sense, different authors have emphasized the importance that external sources of knowledge possess for the development and success of the innovation capability (Li and Tang, 2010; Spithoven et al., 2010).
The globalization of manufacturing companies is closely linked to the globalization of distribution activities (Mattsson, 2003). It can be said that globalization of retailers drives globalization of manufacturing companies. So the latter will be influenced by the supply conditions of the target markets, the possibilities to supply new markets, or the possible threat to be replaced by alternative suppliers (Ruiz, 2000, Etemad, 2004).
At the same time, supply chains have progressively become more international and complex (Monczka and Trent, 2005), representing principal sources of competitive advantage in terms of availability of technological and organizational competencies and access to minor operative costs (Pagano, 2009). The international supply tends increasingly to be considered as a strategic tool chasing to take advantage of the previous advantages. Consequently, organizations should promote this critical organizational relational capability (Kotabe and Murray, 2004).