Early Purchaser Involvement in Open Innovation- thecase of an advanced purchasing function triggering theabsorption of external knowledge in the French
automotive industry
Romaric Servajean-Hilst, Katia Picaud

To cite this version:
Romaric Servajean-Hilst, Katia Picaud. Early Purchaser Involvement in Open Innovation- the caseof an advanced purchasing function triggering the absorption of external knowledge in the French
automotive industry. 23rd IPSERA annual conference, Apr 2014, South Africa. pp.851-865. �halshs00983662�

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Working paper for 23rd annual IPSERA Conference

Early Purchaser Involvement in Open Innovation– the case of anadvanced purchasing function triggering the absorption of
external knowledge in the French automotive industry
Romaric Servajean-Hilst, romaric.servajean-hilst@polytechnique.edu CRG Ecole polytechnique1,
Katia Picaud, kpicaud@audencia.com Audencia Nantes School of Management2
Summary: This paper investigates the mechanisms that trigger the absorption of external knowledge in an
innovative French automotive firm. An ethnographic-inspired study conducted by an academic embedded within
the Innovation Purchasing Department has enable us to present a rare and new function of Purchasing that plays
an important role between potential new suppliers and Research and Development personnel.

Keywords: Open Innovation, Early Purchasing Involvement, Research-based observations,Intermediation, Absorptive Capacity.

1. Introduction
Innovation of products, services and business models is increasingly identified by firms as animportant strategy to achieve competitive advantage. Nowadays, the turbulent economic
environment and rapid changes in the development of new products are some of the reasonsfor identifying and assimilating external knowledge to reinforce and accelerate internalinnovation projects (Noblet and Simon, 2010; Phillips et al., 2006; Zahra and George, 2002).
Within this changing innovation landscape, an “Open Innovation" approach has become amajor theme across companies worldwide. Chesbrough in his seminal work on Open
Innovation suggests that, in a world of widely distributed knowledge, companies cannot
afford to rely entirely on their own research, but should use external channels to get newideas/technologies to markets (Chesbrough, 2003). However, a key challenge of an Open
Innovation approach is to recognize the value of new, external information, assimilate it, andapply it to commercial ends. This corresponds to the well-known definition of absorptive
capacity by Cohen and Levinthal (1990) i.e. the ability of an organization to appropriate
external knowledge in order to transform it into new products. Thus, the specific context of anOpen Innovation approach in projects may have an impact on the departments involved in across-functional innovation project team, particularly in the departments managing external
resources.
Several organizational functions interact with suppliers. Traditionally, the purchasing
department has not been involved in innovation projects but more and more companies realize
the advantages of involving purchasing in this role. Purchasing can help to ensure thattechnologies and components can be sourced, at low cost, high quality and from reliablesuppliers (Calvi et al., 2010; Johnsen, 2009; Schiele, 2010). In this way, the purchasing
department works as an intermediary function based on its knowledge of the supplier market.
It often takes the role of a relationship manager to achieve successful supplier involvement inproduct development projects (Dowlatshahi, 1992). This role includes, for example,
motivating suppliers to collaborate and monitor, interpret and distribute information on
individual suppliers and supplier markets (Wynstra et al., 1999). The purchasing’s uniqueknowledge of the supply market and its interactions with other functions involved in the1

Centre de Recherche en Gestion de l’Ecole polytechnique, Bâtiment Ensta, 828, boulevard des Maréchaux – FR-91762
Palaiseau Cedex – tel. :+33 (0)1 81 87 21 60
2
Audencia School of Management, Direction Recherche, 8 route de la Jonelière- BP 31222 - 44312 Nantes Cedex 3 –tél :+33 (0)2 40 37 34 34

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innovation process gives to the purchasing department a unique opportunity to facilitate thetransfer of both supply needs and supplier needs. Crozier and Friedberg define such anintermediation role as “marginal-secant” i.e. “the position of an actor that is the stakeholder
of different systems of action, playing the role of a go-between and interpreter” (Crozier andFriedberg, 1977, p. 86). The concept of absorptive capacity developed by Cohen andLevinthal (1990) gives an interesting guideline to analyze this pivotal role challenge forPurchasing (Johnsen et al., 2012). Little research focuses on understanding the internal workof purchasing in innovation projects. Indeed, few empirical research studies have been done inunderstanding the changes and trends affecting purchasing with research-based observations(Dhanaraj and Parkhe, 2006; Gardet, 2009; Trent and Monczka, 1998).
The aim of this research is to understand how Purchasing in this Open Innovation approach
may have an important role within this cross-functional team in launching Absorptive
Capacity Process (ACAP). For doing this, the paper begins by defining the process of
Absorptive capacity and identifying the role of an advanced purchasing function in Open
Innovation. This is followed by the presentation of the research setting: the role of the studied
unit within our sample in the French automotive firm. The details of our data collection andanalysis linked to ethnographic-inspired method are presented. Then we narrate how ACAP istriggered and analyze the mechanisms activated by the Innovation Purchasing Department.
Finally the paper concludes by discussing our first results on how the role of Purchasing cancontributes at an early stage to the innovation process.
2. Literature background2.1. Absorptive capacity
Cohen and Levinthal in their seminal article of 1990 define Absorption Capacity (ACAP) as“the ability of a firm to recognize the value of new, external information, assimilate it, andapply it to commercial ends” (Cohen and Levinthal, 1990). They also underlined how much
this absorption capacity was critical for the innovation capacity of a firm. Since then, thenotion of ACAP is widely used and explored in different area of management sciences and isa reference for the Open Innovation literature (Dahlander and Gann, 2010). As it focused
specifically on internal functional requirements for managing external collaboration, ACAP isconsidered suitable for analyzing the role of purchasing in the innovation process (Johnsen etal., 2012).
Furthermore, the work on the innovation intermediaries suggests that by facilitating thetransfer of knowledge between organizations, they can increase both the ACAP of therecipient company and the extent of its knowledge base (Jansen et al., 2005; Meyer, 2010;
Whelan et al., 2011). From an "organizational network analysis" of a triggering sequence of
ACAP, Whelan et al. (2011) have emphasized the role of both types of innovationintermediaries in an ACAP sequence: the idea scout who identifies and exploits external
knowledge and the idea connector who identifies the relevant internal colleagues that are bestequipped to convert this knowledge into an innovative outcome and that will hold such a task.
Triggers are "events that encourage or compel a firm to respond to specific internal orexternal stimuli" (Zahra and George, 2002). These triggers are also envisaged in terms of
incentives to collect and share knowledge (Cohen and Levinthal, 1990; Zahra and George,
2002). But, because of the difficulty in observing, little research has focused on these triggers
when they relate to a specific sequence of ACAP (Imbert and Chauvet, 2012). These authors
have identified four mechanisms implemented by an external actor facilitating the initiationand development of a sequence of knowledge absorption in a recipient organization. These
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mechanisms activated externally are: (1) adopt knowledge, (2) select knowledge, (3)contextualize the knowledge and (4) preserve it.
2.2. Purchasing involvement in Open Innovation
In the literature, we found that purchasing’s involvement in Open Innovation might require aintermediation role that identifies and evaluates a large number of new product ideas (Schiele,2010). Several studies have shown that in an Open Innovation environment, suppliers areknowledge sources that are almost as important as customers (Schiele, 2006). Thus,
purchasing resources are assessing the availability and suitability of these external sources(suppliers) for integration in the innovation process (Wynstra et al., 1999). Purchasing
managers might recognize the value of knowledge in today’s competitive marketplace andtake specific steps for their firm to access and acquire it (Trent and Monczka, 1998). For that,it must be further recognize that particular individuals within a purchasing function may be
assigned to different activities such as planning, supplier analysis, expediting or engineering
liaison.
2.2.1. Managing supplier integration in innovation projects
Research shows that there is a need for the management of advanced supplier selection
process to create supplier relationships with high levels of trust and commitment tocollaborate in innovation projects at an early stage (Johnsen, 2009). Therefore, it can beargued that the management of advanced supplier selection process for innovation projects is
a main challenge of purchasing in innovation projects. The reason is that the question is not
involving all suppliers earlier –but the right suppliers (Clark and Fujimoto, 1991; Petersen etal., 2005).
Managing the involvement of suppliers in New Product Development (NPD) enables buying
firms and key suppliers to collaborate effectively for innovation (Johnsen, 2009; Petersen etal., 2005; Van Echtelt et al., 2008). Supplier involvement may range from giving minor
design suggestions (e.g. to improve a component's manufacturability) to being responsible forthe complete development, design and engineering of a specific part or sub-assembly (LeDain et al., 2011; Wynstra and Pierick, 2000). Suppliers who are involved in new productdevelopment need to be selected and evaluated according to their innovative capability and/or
their complementary know-how. The inclusion of suppliers in an in-house design process ofinnovation projects therefore involves both technical and commercial issues.
For doing so, prior literature have observed a possible distinction between a department that is
integrated into all New Product Development projects while a strategic sourcing departmentthat has a stronger commercial focus and a connection with internal customers (Schiele,2010). A purchasing unit: “advanced (or forward) sourcing” is dedicated to scout innovative
supplier resources and separated from the other units dedicated to “life cycle (or strategic)
sourcing”.
2.2.2. Managing internal coordination between R&D and innovative supplier
The need to consider internal actors within the firm involved in Open Innovation suggests thatthe ability to manage supplier relationships begins by developing the ability to manageinternal cross-functional relationships (Johnsen, 2009). Existing research has acknowledged
the positive effect of cross-functional integration of the purchasing and R&D departments inproblem-solving activities (Clark and Fujimoto, 1991) and on the development of
coordination capabilities (Takeishi, 2001). In order to do so, Ben Mahmoud-Jouini and Calvi
describe the role of purchasing as a facilitator that completes the heavyweight project3

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manager and plays a pivotal role between external and internal systems (Ben MahmoudJouini and Calvi, 2004).
For instance, Purchasing in collaboration with R&D in innovation development may provide
many helpful services but the success of this collaboration depends on both departments. Oneof the reasons is that the R&D department, when unsure of the role that purchasing can playin the innovation process (Atuahene-Gima, 1995; Brattström and Richtnér, 2013; Herzog,
1974), may refuse to consider alternative suppliers from the purchasing department, thus
restricting purchasing’s search for the best acquisition (Herzog, 1974). Even when the R&D
department does involve the purchasing department in the design cycle it not may do so earlyenough for purchasing to get the best supplier involvement.
The early involvement of suppliers in new product development may have been well studied.
But, how the Early Purchasing Involvement may have a role in the involvement of supplier
before the launch of an innovation project is still unclear in research.
2.3. Research question
In this paper we are looking to understand the new challenges of purchasing in an Open
Innovation intermediation role through the mechanisms that facilitate the initiation anddevelopment of new innovation projects leveraging external knowledge. Our researchquestion is: what are the mechanisms activated by an advanced purchasing function involved
in Open Innovation that may trigger a sequence of absorption of new and external knowledge
for a recipient organization?
3. Research method
As the objective of this communication is to study the very first steps of an absorption
sequence in a continuous process of inbound open innovation, it is done by focusing on theactive triggers of an ACAP through the unique point of view of an actor within the receivingorganization: an innovation purchaser. Data collection was done thanks to a participatingobservation within the Innovation Purchasing Department of a division of a French
automotive tier-one supplier. This case study can be considered relevant as the automotive
industry is an industry where the management of external knowledge is critical for developing
the innovation capacities of firms (Ben Mahmoud-Jouini et al., 2007; Calvi, 2000; Johnsen etal., 2011; Lenfle and Midler, 2002; Midler et al., 1997; Takeishi, 2001). The data wasanalyzed by focusing on the approach developed by this department to identify new
innovative suppliers and potential innovations leveraging external knowledge.
3.1. Research settings
3.1.1. The organization
The DELAUTO group (pseudonym) is one of the top automotive tier-one suppliers. Its
independent divisions are in charge of producing different parts or modules of cars. Within
DELAUTO, the DELCAR division represents a third of the general turnover and employsaround 40% of the worldwide staff. DELCAR is an international leading producer of a key
automotive part. The purchasing function plays a strategic role for DELAUTO as its annual
purchases amount to nearly 60% of net sales value.
DELCAR is organized in regional and product business units supported by functional
departments in which are “Research and Development” and “Purchasing” [Figure 1].
Research and Development department includes the Advanced Innovation Department which
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is in charge of generating Breakthrough Innovation projects, Technology Research
Department is in charge of reinforcing the existing technological capabilities of DELCAR,
Innovation Projects Department which up to the stage of transfer to the Program Development
Direction that prepares and launches the industrialization of “customer awarded program”.
The Purchasing Department is divided into the “life-cycle sourcing” function (Business Units
and Commodities Purchasing Directions), and the “advanced sourcing” function (Schiele,2010): the Innovation Purchasing Direction which is the function we are studying.

In DELCAR, the perimeter of innovation is about new products, services, technologies andproduction and supply organizations or processes, which is positioned “ahead of customer
awarded program”: before any contractual sales agreement with automotive carmaker. This
innovation is managed by a 5-phase stage gate process (Cooper, 1990), from ideation to thetransfer to Program Development teams. Every gate review is presented by the Innovation
Project Manager to representatives of Technology research that bring their expertise, Sales &Marketing Managers and Innovation Purchasing Managers; managers from BU and life-cycle
sourcing are invited but rarely presents.
The creation of a new innovation project is performed by the validation of the first gate by thereview committee. The innovative ideas presented, as potential new innovation projects, cancome from inside or outside DELCAR. Being a creative supplier in automotive (Kesseler,
1998), DELCAR is used to sharing its innovation with its clients; DELCAR’s Not Invented
Here syndrome is low. As though, the scouting of external ideas from outside is extended:
many internal actors have a part to play. These actors include: the Innovation Purchasing
Direction, the Advanced Innovation Direction, the Experts from Technology Research
Direction, the members of Innovation Projects and sometimes Life-cycle Sourcing purchasers.
3.1.2. The role of the observed actor: the advanced-purchaser
The Innovation Purchasing Direction of DELCAR manages the implication of externalorganizations in co-innovation projects. Based nearby Research and Development offices,with a facilitated access to innovation restricted R&D Investment Purchasing job description sinceareas, the Innovation Purchasing Direction 2006 – abstract of advanced purchasing functions
makes internally the interface between R&D · Support the R&D organization to find and select theright supplier in line with the global purchasing
and other Purchasing entities. The Innovation
strategy
Purchasing Department has the role to scout, · Identify
potential partners for new needs:
select and follow-up external organizations that * Prospect new suppliers with support fromcan bring in extra innovation capabilities tocommodities
DELCAR. Innovation Purchasers’ scouting for · Activate idea generation from suppliers with support
from commodities
new suppliers is realized both to respond to· Contribute to technological survey
expressed demands from NPD projects or · Work in network with R&D, Marketing,technology roadmaps, and spontaneously. The
Commodities, Legaltargets of this prospection, when not specified, · Be a permanent member of the Innovation Committee
5Working paper for 23rd annual IPSERA Conference

are external organizations that can bring to DELCAR innovative ideas that can make theautomotive part lighter, cheaper to produce and give extra comfort for car passengers.
The scouting for external ideas is not only focused on NPD targets but also on innovations inprocess or organizational methods. The target can be either incremental or radical innovation– the external knowledge can either reinforce or disrupt DELCAR’s knowledge andcompetence regarding both its commercial links and technologies. Moreover, the selection is
not only on new innovative ideas. There is a need to couple an innovative idea with an
external organization holder of knowledge that can at least accompany DELCAR in thedevelopment, the assimilation and the application of this innovative idea. Innovation
Purchasing is looking for dyads {idea-supplier}.
The scouting is done through participations to professional fairs, business meetings andclassical economic intelligence. The participation at such events is chosen according to theproximity of the sector and of the technology used or potentially used in automotive industry.
For example, the exploration of Innovation Purchasing is also done within the aerospacesector or around nanomaterial. A specific demand for innovation sourcing for one NPD
project is officially recognized by DELCAR through the production of an “Innovation ideafrom supplier” form. This form has to be endorsed by Innovation Purchasing and one R&D
manager. This is the first step in the DELCAR process for a new co-innovation project or theStage 0 of the innovation management process. The Innovation Purchasing functions extend
beyond this role of scouting: in case of a need for external knowledge for an existing
innovation project, its role is to accompany the R&D and Marketing Departments forselecting and contracting with suppliers.
3.2. Data collection
Data collection was realized through a 16-month participating-observation done by one author(and still on-going). Inspired by ethnographic methodology, participating-observation is asource of evidence for case studies positioned between direct observation and participantobservation (Yin, 2009, p. 102). It specifically differs from this last one because the role of
the researcher is more active on the ground of study, its participation to the life of the studiedorganization is not marginal and is a large part of is observed (Donada and Mbengue, 1999;
Gold, 1958). The participating-observant was both identified as an actor of the organization
and as an academician – he forms a part of his ground of study. As an academician integratedof the Innovation Purchasing Direction 2 days a week, one author was assuming various roles
in a situation of case study and was participating to the studied events (Yin, 2009).
This methodology allows a direct and “real-life” access to the events that should not be
possible by other means (Yin, 2009). By adopting the point of view of an actor of the casestudy, this type of data collection allows to get a high degree of freedom to investigate thestudied phenomenon (Donada and Mbengue, 1999, p. 239). The data collected is made of a
research notebook that chronologically compiled the notes taken by the participatingresearcher, the exchanged emails (received and sent) including the attached documents andcopies of screen. The notes describe the main interactions related to the studied cases: themeeting reports, both internal and external, as the remarks exchanged at the coffee machine.
The biases linked to this type of research were taken into account and the second author
conducted confirmatory interviews with 5 members of DELCAR: 2 from Innovation
Purchasing Directions, 2 Innovation Project managers and 1 manager from Technology
Research Direction. The data collected are mostly confidential and can be available under thecontrol of DELCAR. For this research, we extracted data related to observed initiatives of
scouting innovative ideas out of DELCAR until the first phase of its innovation process.

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3.3. Data analysis
The first phase of data analysis was done through the use of the technique of “floating
attention”: all the data collected was read from beginning to the end to get impregnated by theentire material as a whole and identify recurring themes (Dumez, 2013). It led to the raising of
the theme of this research through the confrontation of the result of innovation scouting
actions led by the Innovation Purchasing Direction and by other actors of the firm: the same
external actors were met in quite the same conditions but the observed entity was the only to
provoke ACAP sequences (with the support of R&D teams). A literature review was realized.
The research question was determined. In line with the data collection ethnographic-inspired
methodology, a narrative approach was used to describe the observed dynamic phenomenon(Dumez and Jeunemaitre, 2006).
We decided to focus our narration on a triggering sequence that starts by innovation scouting
through speed-dating business meetings. We defined the end of this sequence as the
production of an “Innovation idea from supplier” which marks the recognition andunderstanding of potentially new knowledge outside the firm through exploratory learning,
though representing the first phase of ACAP (Lane et al., 2006). The data was internallyvalidated through the validation of the narration – which is a condition for lifting theconfidentiality of data –and by the actualization of the observed process in the quality systemof the studied organization – this process being validated by the Directions of Purchasing,R&D and Marketing.
4. First results
4.1. Narration of a triggering sequence
A complete triggering sequence for absorbing outside knowledge comprises a scouting
sequence and an intermediation sequence [figure 2]. We focus our narration on a scouting
sequence that begins with the preparation of a business-to-business speed dating day. It is aroutine of the Innovation Direction members to attend to such events in order to source new
innovative {idea-supplier}. These events are organized, in parallel or independently ofbusiness fairs, in order to facilitate the meetings of potentially complementary companies –mainly suppliers and client. Each event is around a main theme: industrial sector, type ofmaterial or subsystem, innovation… Before the event, each company fulfills a presentation
form where it specifies its needs / offers. Each can ask for a meeting with every othercompany. Very before the event, each demanded company select the demanding companies it
wants to meet. The day of the event, the organizer provides to each company its schedule with0 to 16 meetings. Each meeting takes place in a dedicated box and lasts around 30 minutes.

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DELCAR’s Innovation Purchaser fills the form to present the company and put the following
needs: get innovative {idea-supplier} to make the subsystem lighter, cheaper to produce andenhance its design. He does not need to ask for meetings, there are always between 60 and
100 demands. In two or three waves, potential supplier firms are selected: first the companies
out of scope are eliminated (KIBS and firms in yet rejected specialties like bar turning), thenthe companies that added a dedicated message around the expressed needs and the companies
that offers some targeted products or technologies (these target can be defined by R&D
roadmaps or issued from informal discussions with R&D teams) are selected – at this stage
there are yet 8 to 12 accepted demands on 16 meeting possibilities. Finally, the 30 to 50 otherdemanding companies are considered through the visit of their presentations and websites.
They are selected under their potential complementarities and innovation capability.
The day of the event, supplier and client firms are meeting following the instructions given by
the organizer, and by the bell ring. A typical meeting begins by the exchange of businesscards followed by the presentation of the supplying firm, its technologies, its products…
Then, the Innovation Purchaser presents quickly DELCAR, the needs (as written in the form),
specifies the target: only for innovative ideas for DELCAR subsystem, and explains the next
steps after this meeting. Sometimes at this moment (1 to 4), the two interlocutors decide tostop the meeting: mainly when the supplier offers only “on the shelf products” and has no
innovation will or capacity. The following step is a provoked explanation of the potential
usages of the solutions provided by the supplier firm. Both interlocutors then exchange andtry to find some potential innovative ideas to present to DELCAR’s R&D staffs. The meetingconcludes on a recall of the next steps: more documentation, specific explanation and/or
samples to send.
Back to the office – once complementary material is collected - the Innovation Purchasing
department passes through the collected materials, supplier by supplier. A hierarchical list of
potential innovative {idea- supplier} is made; potential inside holders of the external
knowledge are targeted (mainly from R&D and rarely from Purchasing and Marketing).
Following this hierarchy, a slideshow is prepared presenting briefly these innovative {ideasupplier}, with illustrations and targeted applications. This slideshow is sent to the R&D
targeted people and to the Innovation and Purchasing hierarchies. This slideshow, together
with supplier documentation and samples, is presented to the people from R&D in one-to-one
informal and formal meetings. These presentations are done by bounces, looking for theinterested people that could recognize the value of the new knowledge and hold it internally.
The people met are asked for their ideas of other targets: another use of the presented
technology or another internal actor of DELCAR that might be interested by the subject.

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Some {idea- supplier} are eliminated because of the idea or of the supplier, or both. The
presentation of the {idea- supplier} can be updated along the process.
If there is an interest for a potential {idea- supplier}, the role of the Innovation Purchasing
direction is to organize a “Techday” meeting between the supplier and internal interested
people: the potential “holders”. This meeting is organized with them, the Innovation
Purchasing Direction, people from Innovation Project and Technology Research Directions,and Commodity purchasers are invited. Such a meeting consists mainly in presenting thepotential supplier to DELCAR people in 2-hour time and exchanging on stakes and processesof both companies. The objective is to explore potentials of collaboration between the two
firms. Each firm presents its main respective needs and solutions to the others regarding the
subjects targeted by the Innovation Purchasing Direction with the internal interested actor(s).
The presentation of samples and feedbacks on the application of their solutions with othercompanies and/or sectors are appreciated and facilitate the increase of interest of DELCAR
actors.
After such meetings, some samples can be sent to DELCAR in order to proceed to tests.
When sampling is not possible or interesting – or after the test completed – the role of theInnovation Purchasing people is to meet the participants – uppermost the interested people
and their managers – to have their feedbacks on the meeting and on the potential of any {ideasupplier} raised during the meeting (or further to the meeting). If there is any, an”innovation
idea from supplier” form is drafted: it is filled by Innovation Purchasing and amended andapproved by one R&D manager. At this stage the innovative {idea- supplier} is prepared toenter in the innovation project management process: when approved at the first stage of
DELCAR innovation process, the innovation project with the supplier can be officiallylaunched.
4.2. Analysis
In the analysis of triggering sequences that leads to a sequence of absorption by DELCAR of
new external knowledge in line with its Open Innovation strategy, we find five mechanims
activated by Innovation Purchasing. Four mechanims are directly related to knowledge andactivated differently in the two phases of the triggering sequences: (1) selection, (2) adoption,(3) contextualization and (4) preservation of knowledge. The fifth mechanims is related to theidentification and (5) enrollment of internal holders within R&D actors that early recognize
the potential value of the external knowledge for DELCAR.
During the scouting sequence, the four knowledge-related mechanisms are activated by
Innovation Purchasing along with external knowledge holder: the represantatives of the
supplier firm. During the intermediation sequence, these mechanisms are first combined with
the identification of internal holders coming from Research & Development Direction. Then,
when the internal holders are identified, the knowledge-related mechanisms are activatedjointly by Innovation Purchasing and R&D holders.
1st mechanism: selecting knowledge

We observed that a knowledge selection mechanism occurs throughout the triggering
sequence. At the beginning of the sequence, the greatest number of possible {idea-supplier} iseliminated. Innovation Purchasing begins by evaluating roughly the compatibility of the twobases of knowledge. This evaluation is based first on the knowledge base of Innovation
Purchasing. Then the evaluation is based on the knowledge base of R&D people to whom the{idea-supplier} is presented. They act as spokesmen of their area of expertise knowing thehistory of the recipient organization (and sometimes even the potential supplier) and9

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possessing the technological knowledge close to the knowledge base of the potential supplier.
Finally, the selection is completed institutionally via the insertion, or not, of the {ideasupplier} in the innovation management process.
This selection is based on complementarily between the two bases of knowledgeorganizations, and on other criteria. The scarcity of resources available in the focalorganization plays a role in the selection of {idea-supplier}: the time devoted to the discoveryof new sources of knowledge by the Purchasing unit is limited as well as the time available toexplore the potential of these sources by R&D. And this leads to tradeoffs based on
availability of resources. If Innovation Purchasing begins by selecting knowledge during thescouting sequence, its action during the intermediation sequence consists in accompanying theselection of knowledge by R&D actors. Innovation Purchasing performs an intermediary rolein collaboration with the internal network. And, this intermediation consists also in finding theappropriate time to introduce an {idea-supplier} to a potential holder, in order to limit the
impact of resource scarcity but also in response to changes in technology or businessstrategies of the recipient organization.
2nd mechanism: adopting knowledge

During the scouting phase, the action of Innovation Purchasing consists in understanding theknowledge offered by the supplier firm. Presenting to the supplier its internal role after their
meeting “I will be your ambassador in front of DELCAR’s R&D”, Innovation Purchasing
invites the supplier to provide him the elements to present internally the external knowledge.
Innovation Purchasing adopts the external knowledge obtaining adapted arguments on thetechnologies and usages potentially offered by the supplier. Through its questions and thereformulation of the answers brought by the supplier firm, Innovation Purchasing actor is firstable to compare both knowledge base and then get the materials that will allow lately thiscomparison by DELCAR’s R&D spokesmen. The demands for samples, for technical files orfor additional presentations are other mechanisms of adoption of the knowledge as they
provide a basis for deeper understanding and comparison.
During the intermediation phase, Innovation Purchasing plays a role of intermediary between
the supplier and the internal actors that are invited to identify the value of the external
knowledge for DELCAR. Innovation Purchasing during its meetings with R&D actors pushes
them to explicit their own knowledge base and link it to the knowledge base relative to thepresented {idea-supplier}. This mechanism of adoption of external knowledge conducts to theselection mechanism when the knowledge is recognized as potentially valuable.
3nd mechanism: contextualizing knowledge

For selected {idea-supplier}, the external potentially valuable knowledge must be translated
into a form that should be understandable and seen relevant by the recipient firm actors. In
that case, the mechanism of contextualization is used to facilitate the assimilation of external
knowledge in order that it can fit into the standards and standard processes of the recipientorganization. The mechanism of contextualization is activated alone by Innovation Purchasing
during the scouting sequence. It is done through the use of samples, demonstrators, selected
images or documents, transfer of videos, formulation of potential uses… This intermediateobjects are used in order to present the knowledge in an understandable form to the potential
internal holders.
During the intermediation phase, knowledge contextualization is adapted all through theexchanges with R&D actors and especially with those who are able to identify potential
holders. Once a “Techday” meeting is accepted, Innovation Purchasing invites the targeted
audience to take part to it. The supplier is briefly presented and the objects of the meeting: the10

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potential idea is presented in order to get the maximum participants. After the Techday, thecontextualization takes a more formal part, if the {idea-source} is evaluated as potentiallyvaluable for DELCAR: the R&D holder and Innovation Purchasing commits into a formal
form. “The innovation idea from supplier” form is filled. It contextualizes institutionally theexternal knowledge that becomes potentially valuable “at 60%” for becoming a future
innovation project.
4th mechanism: preservation of knowledge

The external knowledge is preserved by Innovation Purchasing through the stocking and the
production of the materials provided by the suppliers or produced during the adoption andcontextualization mechanisms: slideshows, business cards, technical files, samples... The
preservation mechanism is also activated by Innovation Purchasing through the transfer to
R&D experts of these materials to ensure that the knowledge will be kept for DELCAR by theinternal reference on the concerned topics. During the TechDay events, Innovation Purchasing
can contribute to valorizing external knowledge through reminding to R&D some supplier’s
capacities or ideas that are not spontaneously presented.
Internal knowledge is also preserved by Innovation Purchasing all along the sequence, andspecifically during the direct exchanges between R&D and the supplier, through a specificattention on the disclose of confidential information. Innovation Purchasing ensures therespect of confidentiality through the evaluation with R&D spokesmen of the level ofconfidentiality of the topics that might lead to the proposal of a non-disclosure agreement tothe supplier and to specific briefing of TechDay participants before the meeting.
5th mechanism: enrollment of holders

The mediation sequence is characterized by the social mechanisms activated by Innovation
Purchasing in order to first identify the potential R&D holder(s) of the {idea-supplier} andthen enable their appropriation of this external knowledge. Innovation Purchasing looks forconnecting it with the people that are best equipped to recognize its value. These connections
are based on official and personal networks of Innovation Purchasing and on the networks of
the R&D actors that don’t reject the {idea-supplier} and that relay the information ordesignate potential holders.
Once a holder is identified, Innovation Purchasing facilitates its engagement through apersonal implication in the activation of the knowledge-related mechanisms. The holder
selects the {idea-supplier} and shows its interest as a spokesman of its area of expertise. Thenhe contributes to the translation of external knowledge all through the sequence. Innovation
Purchasing does not only ensure the connection with internal holders but also accompany
their adoption of the external knowledge. And, this enrollment through their participation in
the knowledge related mechanisms will later reinforce their implication on the innovation
project, once validated at the firm level.
5. Discussion
Our objective was to study the mechanisms activated by an advanced purchasing function
likely to trigger the absorption of external knowledge by a firm developing an Open
Innovation approach. This perspective is rarely adopted mainly due to the difficulty ofobserving such events (Imbert and Chauvet, 2012). These authors and Whelan et al. (2011)
are within the rare academics to having described and analyzed such a sequence. Their
analyses were grounded on two categories of actors. The former studied a consulting firm
(intermediary) and the recipient-firm (its client). The latter identified two internal roles: “(1)Idea scouts act as the R&D unit’s antennae, tuned to emerging scientific and technological11

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developments that are broadcast from around the globe. (2) Connectors are the hub of thecompany’s social network, the go-to people of the organization. Much of their expertise lies inknowing who is doing what and who can do what” (Whelan et al., 2011).
Our first results allow us to highlight the role of a single internal actor of a knowledge
recipient firm that plays both roles. We identified the knowledge-related mechanisms
described by Imbert and Chauvet (2012) when they were activated by an externalintermediary firm: selection, adoption, contextualization and preservation of knowledge. We
confirmed their activation first by an internal intermediary function and then jointly by thisfunction and R&D actors. We also highlighted the mechanism of enrollment of these
individuals being spokesmen of an internal complementary knowledge base and becoming
through this mechanism allies for the potential absorption of the external knowledge. Throughthese findings, we meet up with the works of innovation sociologists Akrich, Callon and
Latour on the necessity to interest and choose good spokespersons for innovation to succeed
and on the role of intermediaries (Akrich et al., 2002a, 2002b).
Through the activation of the five described mechanisms that lead to the triggering of an
ACAP sequence, the advanced purchaser of this case study merges the two roles necessary forOpen Innovation, scouting and connecting. Its mean that this function can play anintermediation role in order to involve both internal potential heavy weight managers, here
designed as the holders, and external organizations that may be reluctant to share theirknowledge (Ben Mahmoud-Jouini and Calvi, 2004; Wynstra et al., 1999). The marginal
position of an Advanced Purchasing function regarding the two actors may be an opportunity
to trigger such sharing in the fuzzy front end stage of innovation, representing R&D in frontof external organization and the external organization in front of R&D. And its position of“non expert” might facilitate the reception, translation and transfer of knowledge during fuzzy
front end.
6. Conclusion
This study contributes to recent work on the dual role of purchasing in innovation projects(Ben Mahmoud-Jouini and Calvi, 2004; Johnsen et al., 2012; Schiele, 2010). Whilecontribution of Purchasing to the success of innovation collaboration is considered as
relatively minor regarding R&D role (Atuahene-Gima, 1995; Brattström and Richtnér, 2013;
Herzog, 1974), this study may reinforce the recognition of the specificities of an Advanced
sourcing unit in front of life-cycle (or strategic) sourcing (Schiele, 2010).
Our first results strongly support an “innovation intermediary” role of purchasing defined in
the literature. Being part of two system, the advanced sourcing function plays the “role of a
go-between and interpreter” (Crozier and Friedberg, 1977) between innovative suppliers andinnovation units. As firm’s absorptive capacity is formed from an overlap in individual
members’ knowledge structures as well as the transfers of knowledge across and withinorganizational subunits. (Roberts et al., 2012), in the triggering phase of an ACAP sequence,
the advanced purchaser evaluates, prepares and realizes the first steps of this overlap – which
is a role of knowledge broker. And as an interpreter being part of the two systems, he plays
pivotal role in transforming an organization's resources (Ben Mahmoud-Jouini et al., 2007).
In conclusion we suggest that as the early involvement of purchasing in innovation facilitates
the absorption capacity of firms, it should be considered as an important part of their Open
Innovation strategies; firms might consider developing their advanced purchasing functions
and promoting their intermediation role between internal and external actors of innovation.

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Limitations and further avenues of researchThis paper represents work in progress and has the traditional limitations associated to themethodology based on a single case study in one sector and specific context. It is a starting
point for further researches. It is yet planned to investigate the themes emerging from thisresearch through a set of in-depth case studies in other sectors. Furthermore, the data collected
will be further investigated regarding the other facets of the studied functions, especially in its
role during established innovation project – and the impact of this role on the position
described in this paper will be questioned. Our research question and our results should also
be examined in regards with an innovation scouting function positioned within R&D andMarketing, and with the level of the technological expertise of such actors.
7. Acknowledgements
The support of the company DELCAR and the Fondation de l’école Polytechnique (France) is
gratefully acknowledged. We also appreciate the feedbacks from Aegis workshop at CRG.
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