Fluffy cuffs: SME’s innovation in alliances with buyer firms

Abstract Supplier firms, especially the more resource constraint SMEs, form alliances for product innovation. firms can try to push in creative inputs while needing align them with overall solution of buyer. Our study zooms on this and alignment balancing act. theoretical model is informed by attention-based view. It considers two centralization mechanisms, relationship intensity formalized specifications buyer firm. dependent variable innovation SME supplier. The hypothesizes linear non-linear effects buyer’s detailed (e.g., functional principles, features, design elements). Data collected from 279 European supplier SMEs reveals that moderate levels “post-formational specifications” proposed firm are associated greater Interestingly, less results when either minimal or high. Stronger allows as it enables partners capture benefits post-formational they constructively work together.