IMD’s survey of 34 executives in the high-tech sector reveals that they recognize knowledge spillovers is a critical issue in today’s supply chains. They also see suppliers and customers as important sources of information for innovation. However, managers need to be aware of the risks of negative leaks, which can have detrimental consequences for the firm, warns IMD. At the same time, knowledge spillover can offer significant benefits for the supply chain if suppliers leverage newly acquired competencies to their advantage.
Recognize knowledge spillovers
Recognize the potential of knowledge spillovers in collaboration and sourcing decisions up-front. What do you need to protect from your competitors? Are there limitations in your supply chain contract? To what extent can your enforce non-use, non-disclosure and non-competition clauses in a global marketplace?Recognize knowledge spillovers
Make Employees aware of knowledge spillover
People buy from people. Make sure that employees are aware of the risks and benefits of knowledge spillovers. Create an appropriate policy regarding disclosures and interactions outside the firm.Make Employees aware of knowledge spillover
Create a clear strategy in the supply chain
Do you want a win-win situation or to squeeze a supplier? In collaborations, clearly agree upfront how innovative output shall be divided! If the knowledge is strategically important, in-house production or vertical integration of the supplier might be the safer option.Create a clear strategy in the supply chain