Effect of innovativeness on supply chain integration and performance

Abstract

Purpose The purpose of this paper is to investigate the potential role of innovativeness in determining supply chain (SC) integration and to foster the SC performance of manufacturing small and medium enterprises (SMEs). The study also proposes that the SC integration–performance relationship is contingent to the degree of environmental uncertainty (EU). Design/methodology/approach The data were collected from 321 manufacturing SMEs working in Pakistan. Respondents were owners/CEOs/managers of the firms. Considering the formative nature of indicators of SC efficiency and effectiveness, partial least square-based structural equation modeling (SEM) was used to analyze the data. Findings The results indicate that innovativeness positively influences the dimensions of SC integration which in turn affects SC efficiency and effectiveness. The results support the presence of moderation for the relationship between the dimensions of both SC integration and performance. The findings suggest that firms should endeavor to accomplish innovativeness and SC integration, as they jointly promote SC performance. Practical implications SMEs can use innovativeness as an important tool to increase SC integration and SC performance. For SMEs with a highly volatile and dynamic environment, managers should achieve SC integration and include external integration orientation at the strategic level in order to reap the greatest advantages from SC integration. Originality/value This study contributes to the SC literature by exploring the effect of the nascent determinant (innovativeness) of SC practices and performance to expand and deepen current understanding of the potential role of innovativeness in the SC context. Furthermore, considering EU as a moderator opens up new avenues of research to elucidate the SC integration–performance nexus in the emerging market context.

Corruption and innovation: the importance of competition

“…Especially in emerging markets, firms must innovate to differentiate themselves from competitors (Paul, 2020). Innovative firms have higher growth rates and are more profitable than non-innovators (Kalyar et al , 2020). Thus, higher corruption by bureaucrats to exploit these firms may hinder innovation (Awdeh and Hamadi, 2019; Pirtea et al , 2019; Xie et al , 2019; Ayyagari et al , 2014) [2].…”

The impact of digitalization on supply chain resilience: an empirical study of the Chinese manufacturing industry

“…The stronger the degree of SCI, the stronger the ability to improve supply chain performance (Wiengarten et al , 2019; Zhao et al , 2008). Enterprises and customers can coordinate their relationships by establishing common information sharing channels (Jia et al , 2020; Kalyar et al , 2019). The reconciliation of the relationship between enterprises and suppliers is also an important form of SCI (Birasnav and Bienstock, 2019).…”

“…Enterprises and customers can coordinate their relationships by establishing common information sharing channels (Jia et al, 2020;Kalyar et al, 2019). The reconciliation of the relationship between enterprises and suppliers is also an important form of SCI (Birasnav and Bienstock, 2019).…”

Green Innovation in Environmental Complexity: The Implication of Open Innovation

“…When companies face uncertainty in their environment, they often employ an array of externally oriented strategies to shape their business environment. As the integration level increases, uncertainty must be alleviated, and as a result, companies move toward greater integration to conform to both their internal and external environments [20].…”

“…This situation causes the enterprises to focus more on green innovation. Therefore, environmental uncertainty is an inevitable situation for almost every company today [19,20].…”