Relational capabilities for value co‐creation and innovation in SMEs
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 18 May 2010
Abstract
Purpose
The purpose of this paper is to examine the relational capabilities developed by small and medium‐sized suppliers in relationships with larger customers and to explore the influences of these relational capabilities on value co‐creation and innovation.
Design/methodology/approach
The paper presents a framework to evaluate the types of relational capabilities developed by small and medium‐sized suppliers that enable them to manage in relationships with larger customers in the context of changing relationship requirements in the organic food sector. The methodology employed involves in‐depth case studies of small and medium‐sized UK organic food suppliers working in relationships with large retail supermarket customers.
Findings
The findings suggest that the identified set of relational capabilities may be employed by small and medium‐sized suppliers to enable them to inform and support innovation and the implementation of initiatives to create value in the eyes of their current and potential customers and concomitantly enhance their position as preferred suppliers.
Research limitations/implications
The findings were based on a small number of case studies of small UK organic food suppliers. Therefore, there is scope for future studies to explore the issues addressed in the paper in wider relationship, network and country settings.
Originality/value
The research is among the first to offer a conceptual framework and an empirical contribution linking relational capabilities, value co‐creation and innovation in small and medium‐sized suppliers.
Keywords
Citation
Ngugi, I.K., Johnsen, R.E. and Erdélyi, P. (2010), "Relational capabilities for value co‐creation and innovation in SMEs", Journal of Small Business and Enterprise Development, Vol. 17 No. 2, pp. 260-278. https://doi.org/10.1108/14626001011041256
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited