Leveraging Supply Base Specialization for Eco- Product and Process Innovation

This study explores how suppliers’ specialization can enhance buyers’ eco-innovation capabilities through the development of relational flexibility. We focus on specialized intangible assets, which are becoming increasingly rare and valuable due to technological advancements in manufacturing sectors. Results from a survey of 277 buyer supplier relationships, analysed using a structural equation model, support a set of hypotheses grounded in both TCE and RET. The findings indicate that when the relationship atmosphere is characterized by relational flexibility, every effort made by suppliers to tailor their procedures and knowledge for a specific partner increases both eco-product and eco-process innovation.