{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,1,16]],"date-time":"2026-01-16T11:38:10Z","timestamp":1768563490068,"version":"3.49.0"},"reference-count":103,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"6","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["M&amp;SOM"],"published-print":{"date-parts":[[2025,11]]},"abstract":"<jats:p>Problem definition: Many firms rely on their suppliers as a source of innovation, and they harness the innovation potential of their supplier base by organizing procurement contests. Most research on contests has simply assumed that suppliers are independent from the buyer and thus compete \u201con even ground.\u201d In practice, however, this assumption is not always valid because some suppliers may be affiliated with or even controlled by the buyer. This paper seeks to understand how (varying degrees of) supplier ownership and supplier control affect the outcomes of a procurement contest in terms of the buying firm\u2019s profits and the extent of product innovation. Methodology\/results: We use a game-theoretic model to identify the mechanism by which supplier ownership and control effectuate results. We characterize when supplier ownership and control are (or are not) beneficial for a buying firm, and we study cases in which the optimal supplier base structure promotes (or impedes) product innovation. Managerial implications: Our analysis yields practicable insights regarding the optimal configuration of a buyer\u2019s supplier base structure, and it helps explain the rationale behind recent supplier base developments in many large industries. We demonstrate in particular that the presence of an affiliated supplier may dampen all suppliers\u2019 incentives to innovate and thereby undermine product innovation. Finally, we explain why a buyer does not always benefit from exerting control over its affiliated suppliers.<\/jats:p>\n                  <jats:p>Supplemental Material: The online appendix is available at https:\/\/doi.org\/10.1287\/msom.2023.0312 .<\/jats:p>","DOI":"10.1287\/msom.2023.0312","type":"journal-article","created":{"date-parts":[[2025,9,12]],"date-time":"2025-09-12T14:41:26Z","timestamp":1757688086000},"page":"1869-1888","source":"Crossref","is-referenced-by-count":2,"title":["Sourcing Innovation: When to Own and When to Control Your Supplier"],"prefix":"10.1287","volume":"27","author":[{"ORCID":"https:\/\/orcid.org\/0000-0001-6663-9550","authenticated-orcid":false,"given":"Zhi","family":"Chen","sequence":"first","affiliation":[{"name":"NUS Business School & Institute of Operations Research and Analytics, National University of Singapore, Singapore 119245"}]},{"ORCID":"https:\/\/orcid.org\/0000-0002-7197-1598","authenticated-orcid":false,"given":"J\u00fcrgen","family":"Mihm","sequence":"additional","affiliation":[{"name":"INSEAD, 77305 Fontainebleau, France"}]},{"ORCID":"https:\/\/orcid.org\/0000-0003-2443-9272","authenticated-orcid":false,"given":"Jochen","family":"Schlapp","sequence":"additional","affiliation":[{"name":"Frankfurt School of Finance & Management, 60322 Frankfurt am Main, Germany"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.12.6.683.10086"},{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1093\/jleo\/ewr006"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2016.1575"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1007\/978-3-030-01863-4_16"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1111\/poms.13342"},{"key":"B8","doi-asserted-by":"publisher","DOI":"10.1287\/orsc.2017.1156"},{"key":"B9","doi-asserted-by":"publisher","DOI":"10.1016\/j.geb.2010.01.013"},{"key":"B11","volume-title":"Wiley Encyclopedia of Operations Research and Management Science.","author":"Beil D","year":"2010"},{"key":"B12","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.49.11.1529.20588"},{"key":"B13","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2017.0636"},{"issue":"2","key":"B14","first-page":"339","volume":"67","author":"Bimpikis K","year":"2019","journal-title":"Oper. Res."},{"key":"B15","volume-title":"Contract Theory","author":"Bolton P","year":"2004"},{"key":"B16","doi-asserted-by":"publisher","DOI":"10.2307\/2601000"},{"key":"B17","doi-asserted-by":"publisher","DOI":"10.1515\/9781400845354-023"},{"key":"B18","first-page":"37","author":"Bristow S","year":"2011","journal-title":"Read Enterprise Res. Planning"},{"key":"B19","doi-asserted-by":"publisher","DOI":"10.1111\/j.1756-2171.2009.00065.x"},{"key":"B20","doi-asserted-by":"publisher","DOI":"10.1017\/CBO9780511492556.020"},{"issue":"1","key":"B22","first-page":"1","volume":"36","author":"Cando\u011fan S","year":"2025","journal-title":"IMA J. Management Math."},{"key":"B23","doi-asserted-by":"publisher","DOI":"10.1287\/msom.1100.0319"},{"key":"B24","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2013.1835"},{"key":"B25","doi-asserted-by":"publisher","DOI":"10.1257\/000282803322157025"},{"key":"B26","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2022.2349"},{"key":"B27","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2017.0664"},{"key":"B28","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2021.0983"},{"key":"B29","volume-title":"Open Innovation: The New Imperative for Creating and Profiting from Technology","author":"Chesbrough H","year":"2003"},{"key":"B30","doi-asserted-by":"publisher","DOI":"10.1007\/s11127-015-0264-9"},{"key":"B31","doi-asserted-by":"publisher","DOI":"10.1016\/S0304-405X(00)00067-2"},{"key":"B32","volume-title":"Supply Chain Development for the Lean Enterprise. Interorganizational Cost Management","author":"Cooper R","year":"1999"},{"key":"B33","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2015.2386"},{"key":"B34","doi-asserted-by":"publisher","DOI":"10.1016\/j.jinteco.2017.08.003"},{"key":"B35","doi-asserted-by":"publisher","DOI":"10.1111\/j.1937-5956.2005.tb00022.x"},{"key":"B36","doi-asserted-by":"publisher","DOI":"10.1007\/978-3-319-71105-8"},{"key":"B37","doi-asserted-by":"publisher","DOI":"10.1016\/j.geb.2016.02.003"},{"issue":"1","key":"B38","first-page":"51","volume":"35","author":"Dyer J","year":"1993","journal-title":"MIT Sloan Management Rev."},{"key":"B39","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2.4.350.12340"},{"key":"B40","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.49.5.673.15150"},{"key":"B41","doi-asserted-by":"publisher","DOI":"10.1093\/restud\/rdac074"},{"key":"B42","doi-asserted-by":"publisher","DOI":"10.1016\/j.jpubeco.2010.09.012"},{"key":"B43","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1110.1418"},{"key":"B45","doi-asserted-by":"publisher","DOI":"10.1086\/467037"},{"key":"B46","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/14.4.943"},{"key":"B48","doi-asserted-by":"publisher","DOI":"10.1086\/250072"},{"issue":"3","key":"B49","first-page":"514","volume":"72","author":"Gilbert RJ","year":"1982","journal-title":"Amer. Econom. Rev."},{"key":"B51","doi-asserted-by":"publisher","DOI":"10.1086\/261404"},{"key":"B52","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2017.0623"},{"key":"B53","doi-asserted-by":"publisher","DOI":"10.1086\/261729"},{"key":"B55","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2017.0672"},{"key":"B56","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3683"},{"key":"B57","doi-asserted-by":"publisher","DOI":"10.1111\/1756-2171.12158"},{"key":"B58","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2020.0873"},{"key":"B59","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2021.4140"},{"key":"B60","doi-asserted-by":"publisher","DOI":"10.1108\/JMTM-06-2014-0077"},{"key":"B61","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2021.0420"},{"issue":"6","key":"B62","first-page":"2249","volume":"25","author":"Khorasani S","year":"2023","journal-title":"Manufacturing Service Oper. Management"},{"key":"B63","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1120.1573"},{"key":"B64","doi-asserted-by":"publisher","DOI":"10.1016\/j.geb.2012.04.005"},{"key":"B65","doi-asserted-by":"publisher","DOI":"10.1016\/S0014-2921(01)00201-X"},{"key":"B66","doi-asserted-by":"publisher","DOI":"10.1093\/oso\/9780199549597.001.0001"},{"key":"B67","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2017.2738"},{"key":"B68","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2021.2250"},{"key":"B69","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2020.0935"},{"key":"B70","doi-asserted-by":"publisher","DOI":"10.1057\/s41291-019-00074-2"},{"key":"B71","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1090.1086"},{"key":"B72","doi-asserted-by":"publisher","DOI":"10.1002\/smj.2062"},{"key":"B75","volume-title":"A Theory of Incentives in Procurement and Regulation","author":"Laffont J-J","year":"1993"},{"key":"B76","doi-asserted-by":"publisher","DOI":"10.1016\/j.jengtecman.2009.03.007"},{"key":"B77","doi-asserted-by":"publisher","DOI":"10.1086\/261010"},{"issue":"409","key":"B78","first-page":"1418","volume":"101","author":"Leech D","year":"1991","journal-title":"Econom. J."},{"key":"B79","doi-asserted-by":"publisher","DOI":"10.1287\/msom.2019.0784"},{"key":"B80","doi-asserted-by":"publisher","DOI":"10.1287\/msom.1080.0232"},{"key":"B81","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2016.2458"},{"key":"B82","doi-asserted-by":"publisher","DOI":"10.1016\/0048-7333(95)00826-8"},{"key":"B83","doi-asserted-by":"publisher","DOI":"10.1057\/9780230294905_6"},{"issue":"2","key":"B84","first-page":"453","volume":"2017","author":"Liu Y","year":"2017","journal-title":"Colum Bus. Law Rev."},{"key":"B85","volume-title":"Brake Systems: OEM & Racing Brake Technology","author":"Mavrigian M","year":"1998"},{"key":"B86","doi-asserted-by":"publisher","DOI":"10.1016\/j.jengtecman.2006.08.006"},{"key":"B87","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2017.2955"},{"key":"B88","doi-asserted-by":"publisher","DOI":"10.1257\/aer.91.3.542"},{"key":"B90","volume-title":"McKinsey on Semiconductors","author":"Naeher U","year":"2011"},{"key":"B91","doi-asserted-by":"publisher","DOI":"10.2307\/3003535"},{"key":"B93","doi-asserted-by":"publisher","DOI":"10.1111\/poms.13659"},{"key":"B95","doi-asserted-by":"publisher","DOI":"10.1016\/0019-8501(94)90038-8"},{"key":"B96","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2020.3800"},{"issue":"4","key":"B97","first-page":"741","volume":"73","author":"Reinganum J","year":"1983","journal-title":"Amer. Econom. Rev."},{"key":"B98","doi-asserted-by":"publisher","DOI":"10.1016\/0889-1583(91)90017-K"},{"key":"B99","doi-asserted-by":"publisher","DOI":"10.2307\/2297997"},{"key":"B100","doi-asserted-by":"publisher","DOI":"10.1163\/9789004638914"},{"key":"B101","volume-title":"Strategic Management of Technological Innovation","author":"Schilling M","year":"2017","edition":"5"},{"key":"B102","volume-title":"Innovation and Incentives","author":"Scotchmer S","year":"2004"},{"key":"B103","doi-asserted-by":"publisher","DOI":"10.1515\/9781400845354-005"},{"key":"B105","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2021.03973"},{"key":"B106","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2021.4111"},{"key":"B107","doi-asserted-by":"publisher","DOI":"10.1515\/9781400845354-006"},{"issue":"4","key":"B108","first-page":"872","volume":"85","author":"Taylor C","year":"1995","journal-title":"Amer. Econom. Rev."},{"key":"B109","doi-asserted-by":"publisher","DOI":"10.1016\/0048-7333(86)90027-2"},{"key":"B110","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1080.0884"},{"key":"B111","doi-asserted-by":"publisher","DOI":"10.1287\/opre.1080.0657"},{"key":"B112","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1120.1539"},{"key":"B113","doi-asserted-by":"publisher","DOI":"10.1111\/jpim.12576"},{"key":"B115","doi-asserted-by":"publisher","DOI":"10.1287\/msom.1110.0358"},{"key":"B116","doi-asserted-by":"publisher","DOI":"10.1080\/0740817X.2012.757679"},{"key":"B117","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2021.2111"},{"key":"B118","doi-asserted-by":"publisher","DOI":"10.1287\/opre.2019.0498"}],"container-title":["Manufacturing &amp; Service Operations Management"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/pubsonline.informs.org\/doi\/pdf\/10.1287\/msom.2023.0312","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,11,7]],"date-time":"2025-11-07T09:41:58Z","timestamp":1762508518000},"score":1,"resource":{"primary":{"URL":"https:\/\/pubsonline.informs.org\/doi\/10.1287\/msom.2023.0312"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2025,11]]},"references-count":103,"journal-issue":{"issue":"6","published-print":{"date-parts":[[2025,11]]}},"alternative-id":["10.1287\/msom.2023.0312"],"URL":"https:\/\/doi.org\/10.1287\/msom.2023.0312","relation":{},"ISSN":["1523-4614","1526-5498"],"issn-type":[{"value":"1523-4614","type":"print"},{"value":"1526-5498","type":"electronic"}],"subject":[],"published":{"date-parts":[[2025,11]]}}}