Suppliers’ technological newness: Source of uncertainty in manufacturing technology innovations

Abstract

Radical manufacturing technology innovations involve the introduction of a new technology in a firm’s core production process. They require significant learning and knowledge transfer between the technology supplier and the technology introducing manufacturing firm. This study explores the technological newness for equipment supplier firms and linked technology uncertainties in high-novelty manufacturing technology innovation projects which feature technological newness not only for the technology introducing manufacturing firm but also for the equipment supplier firm. The findings reveal a four-dimensional construct for equipment suppliers’ technological newness and linked technological uncertainties emerging in the manufacturing firm’s innovation process. The findings pave the way for better planning and preparation for addressing technological uncertainties and linked inefficiencies in high-novelty manufacturing technology innovation projects. Implications for research on knowledge transfer for innovation are discussed.