Collaborative innovation with suppliers in a turbulent market

This study investigates benefit sharing practices in supplier networks as a new incentivescheme that manufacturers can use to gain suppliers’ active participation in collaborativeinnovation. Based on observations from the case study, Samsung’s benefit sharing practicesare analysed and their featured characteristics and the requisite conditions extracted. Thefindings illustrate the operating mechanisms of benefit sharing practices. The findings alsodemonstrate the requisite infrastructure that manufacturers should build to ensure thesuccess of benefit sharing. This study, the first examination of the mechanisms of benefitsharing in the context of a rapidly changing industry, not only enriches inter-organisationallearning research but also provides new insights into collaborative-innovation for companiesand government authorities.