Supply chain collaboration and open innovation: toward a new framework for network dynamic innovation capabilities

This study aims to understand which are the factors that allow a company to be proactive in a collaborative relationship within its supply chain (and network), in particular in their innovation processes. A pilot case and three case studies have been conducted to identify the variables of a new framework of network dynamic innovation capabilities that companies need to develop in order to successfully compete in turbulent competitive environments. Companies can manage such complexity, starting from a new strategic vision (sponsored by the CEO and top management), creating or adapting new organizational processes and requiring different attitudes and skills from its employees and collaborators. External contribution can be intended both outside the boundaries of the company or outside a specific division. Ad hoc organization can be formed for scouting, networking, evaluating, financing or connecting external sources of innovation. New competencies and skills are also needed at the individual level, such an extroversion attitude, the capability to be entrepreneurial, the capability to be comfortable with collaboration and develop a technical and business mindset, a leadership vision and the capability to naturally and routinely develop network and seek external potential solution providers. The final goal of the proposed model is to create sustainable competitive advantage through the creation of innovation dynamic capabilities through a network of players. Supply chain management has been considered the companies’ enabler of winning business models. Having improved their own internal processes, the opportunity to create a competitive advantage relies on the improvement of the external relationships. Intense competition, more exigent and unpredictable demand, shortened product life cycles, continuous improvement in technology, more complex products, force companies to structure their processes focusing on their core competences, selecting on the external market complementary competences that could help them to maintain their competitive position.