Multichannel integration through innovation capability in manufacturing SMEs and its impact on performance

Abstract

Purpose Using online channels is an opportunity for small and medium-sized enterprises (SMEs) in the manufacturing industry to reach new markets and reduce the dependency on distributors. The challenge remains that of integrating new online channels into existing networks effectively. This paper aims to identify to what extent multichannel integration is enhanced by the innovation capability of manufacturing SMEs and the subsequent influence on their performance. Design/methodology/approach Data were collected by means of a survey aimed at managers of small manufacturing firms in Mexico and were analysed through an advanced partial least squares (PLS) approach via SmartPLS. Findings Manufacturing SMEs with more advanced innovation capability achieve higher levels of multichannel integration. In turn, when multichannel integration is more advanced, manufacturing SMEs enjoy better results with respect to sales, fulfilling marketing objectives and improving relationships with customers. Research limitations/implications The model could be extended to accommodate other variables that may affect the effective integration of multiple channels. Practical implications Manufacturing SMEs can improve their results by integrating online channels with existing offline channels with a commitment to innovating in the market. Originality/value Analysing multichannel integration from the perspective of manufacturing firms, examining not only the positive consequences but also the underlying capabilities needed.

Influence of IT support on firms' cross-channel integration: the moderating role of institutional environment

“…For example, Luo et al (2016) found firms with more IT applications or that invest in a more balanced portfolio of IT applications can develop stronger cross-channel capabilities. Meanwhile, Cao and Li (2018) identified IT capability as a technology-related factor that can positively affect and Kolbe et al (2021) found manufacturing SMEs with advanced technological capabilities can achieve higher levels of multichannel integration. Saghiri and Mirzabeiki (2021) demonstrated advanced information and digital technologies can enhance omni-channel data flow integration.…”

Impact of Supply Chain Integration, Supply Chain Responsiveness, and Innovation Capability on Operational Performance in Era Covid-19

“…This research follows previous research saying that the relationship between supply chain partners improves innovation capability in the manufacturing industry. In practice, for example, the SCI, namely collaboration with partners based on trust, can affect IC; namely, companies can be the first in product development in the market (Kolbe et al, 2021;(Jimenez-Jimenez et al, 2019).…”

“…Supply chain integration positively impacts innovation capability (Kolbe et al, 2021). Collaboration with the customers and suppliers enables the company to create a new product (Jimenez-Jimenez et al, 2019).…”

“…Organizational supply chain partner relationships are the most important source of new knowledge creation and learning and have an essential role in improving innovation in the organization (Tian et al, 2021) (Huhtala et al, 2014). Therefore, supply chain integration has an essential role in innovation capability (Kolbe et al, 2021). Innovation capability can also improve operational performance by developing new innovations when organizations have goals and demonstrate a greater level of integration (Kafetzopoulos & Psomas, 2015).…”

Impact of bundling on the omnichannel supply chain under price competition

“…Online retail channels aim to attract consumers and increase their demand for their products through new marketing strategies (Kolbe et al , 2022). However, several e-commerce firms faced high returns rates because of inaccurate and incomplete product information on their sites (Vasić et al , 2019).…”