In this study, we use blended theoretical arguments from resource
dependence theory, social capital theory, and the knowledge-based view
to posit that supply chain partner innovativeness enhances a firm's
innovation strategy which in turn positively influences innovation
performance. In addition, we argue that the effect of supply chain
partner innovativeness on product innovation strategy could be further
enhanced by innovation climate and having strategic relationships with
key supply chain partners. Using data collected from 207 manufacturing
firms in Australia, the findings show that key supply chain partner
innovativeness has a positive effect on product innovation strategy.
Further, the effect of supply chain partner innovativeness on innovation
strategy is enhanced when firms have stronger strategic relationships
with their key supply chain partners. Finally, we find that the joint
influence of innovation climate and strategic relationships with key
supply chain partners enhances the effect of supply chain partner
innovativeness on innovation strategy. The theoretical and practical
implications of the study are discussed. [PUBLICATION ABSTRACT]