What is Small and Midsize Enterprises (SMEs)

In this paper, the focus is on an organization's ability to systematically generate value innovation initiatives. Especially in the context of fundamental new strategic moves, researchers have begun to stress the importance of deliberate mechanisms for learning. Building further on this theme, this paper focuses on the relationship between learning mechanisms that an organization establishes deliberately and its value innovation ability. Prevailing studies have demonstrated the importance of learning from an organization's innovation outcome. Although marketing scholars have emphasized both the consequence of internal learning mechanisms and of external learning through supply chain partners research findings on how these factors affect each other are merely lacking. We used a variance-based structural equations modeling technique (SEM) for the analyses, namely PLS-Graph 3.0. Analyzing survey data of 91 industrial firms, we examine how information supplied by upstream and downstream supply chain parties simplifies the effect of internal deliberate learning mechanisms on value innovation capability. PLS analysis of survey data suggests that value innovation capacity is strengthened when managers deliberately install specific learning mechanisms on the ability to receive. The results also suggest that internal learning mechanisms and external information exchange do not always work in a symbiotic manner. Results complement existing research by indicating the importance of deliberate action when attempting to break through existing industry practices.