Learning from Auto Makers and Path Dependence: Conflicting Modes to Promote Suppliers´ Innovation Quality

Previous research has verified that in the auto manufacturing industry, auto makers are crucial knowledge source for suppliers, thus learning from auto makers is an efficient way to improve suppliers´ innovation quality. However, some suppliers depend heavily on their own knowledge, which is characterized as high level of path dependence. This paper investigates the incompatible relation of these two modes in promoting suppliers´ innovation quality. Using patent data, we verify that although learning from auto makers can significantly improve suppliers´ innovations quality in general, for suppliers with high level of path dependence, this improvement is weakened. The result of this paper suggests that, in the auto manufacturing industry, suppliers should adjust his internal institutions, structures and routines to decline their path dependence, and then they can efficiently promote their innovation quality through learning from auto makers.