The role of knowledge derived from supplier networks in the product innovation of selected companies in the Philippine biscuit industry

• Main Author: Cabo Chanpongco, Charles G.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4670
• Institution: De La Salle University

It is an established fact that knowledge derived from any conglomeration of entities may lead to innovation. However, it is innovative activities that directly lead to product innovation. The study aimed to identify whether knowledge derived from suppliers enables companies to carry out innovation activities, and which kinds of innovation activities firms engage in that lead to product innovation. These propositions were tested on the Philippine biscuit industry through the use of a guide questionnaire to conduct in-depth interviews with executives of the three largest local biscuit manufacturing companies as well as selected suppliers. Results show that among the innovation activities that lead to product innovation, it is in in-house R&D, acquisition of equipment, and training that suppliers are involved in while suppliers are not involved in the acquisition of external knowledge, design, and market introduction of innovations. Meanwhile, knowledge gained from suppliers is in the form of knowledge on improving quality and yields, trends, and developments on technology. Using these findings, manufacturers should continue to nurture their relationships with suppliers, while suppliers should continue to find ways to add value to their products.