Drawing from the literature on firm resources and capabilities, as well as supplier management, this study investigates why and how some buying firms are more successful than others in leveraging the capabilities of their new venture suppliers. We use a qualitative research approach and...

Purpose While anecdotal evidence suggests that performance-based contracts (PBCs) may foster innovation in buyer-supplier relationships, the understanding of the underlying mechanisms is limited to date. The purpose of this paper is to draw on transaction cost economics and agency theory to...