Enhancing supplier innovation capabilities through digital technology integration: A relational perspective

The integration of digital technologies is reshaping global supply chains, yet how these advancements foster supplier innovation remains underexplored. This study examines how multinational corporations' (MNCs) adoption of digital technologies facilitates supplier innovation capabilities through inter-organisational collaboration. Drawing on the Relational View of Competitive Advantage (RVCA), this research adopts a multiple-case study approach, analysing 12 cases through 41 interviews and archival data. The findings highlight how structured knowledge integration, resource complementarity, and digital adaptability drive innovation, while disparities in knowledge accessibility and power asymmetries hinder equitable outcomes. This study offers key contributions. Theoretically, it introduces a layered framework linking digital integration to supplier innovation, extending the RVCA by uncovering how knowledge transfer, resource complementarity, and adaptability drive innovation. Practically, it provides insights for practitioners to foster inclusive digital ecosystems through equitable knowledge-sharing and adaptable infrastructures. • MNCs' digital tools boost supplier innovation through data sharing, knowledge exchange, and collaboration. • Structured knowledge integration with MNCs drives suppliers' adoption of new innovative practices. • Digital and operational resource synergy enhances efficiency and performance across supply chains. • Supplier adaptability to MNC digitalisation hinges on readiness, learning capacity, and infrastructure. • Innovation benefits from digitalisation vary widely, with gains unevenly spread across suppliers.