Social Capital and Innovation Capabilities in the Buyer-Supplier Relationship: The Role of Opportunism and Intellectual Property Risk

Abstract

Companies, as one of the most prominent features of today's societies, are rapidly changing and evolving, and in the current situation, improving the innovation capabilities is one of the main goals of any living and active organization. The purpose of this study is to investigate the effect of social capital on innovation capabilities in supplier-buyer relationships by of opportunistic and intellectual property risks. The statistical sample in this study contains 95 of supply chain managers which are active in the escalator and elevator industry. The collected data were analyzed by using partial least squares method and Smart PLS software. The findings illustrate positive and significant effect of social capital on innovation capabilities (and indirectly through intellectual property risk). Opportunistic and intellectual property risks also have a significant negative impact on innovation capabilities. The results of this study for managers reveal the fact that investing in social capital in a buyer-supplier relationship not only does not hurt but also achieves a competitive advantage through innovation capabilities.

Keywords

• social capital
• innovation capabilities
• buyer-supplier relationship
• opportunism risk
• intellectual property risk