The impact of innovativeness on supply chain performance: is supply chain integration a missing link?
Young-Joon Seo, John Dinwoodie, Dong-Wook Kwak
2014
Supply chain management
Dong-Wook Kwak Coventry Business School Purpose: Innovativeness is an accepted driver to leverage firm performance. Supply chain integration (SCI) and supply chain performance (SCP) require innovativeness in the supply chain, but their interrelationships have rarely been researched empirically. This paper investigates the impact of innovativeness on SCI and SCP and the role of SCI in mediating between innovativeness in the supply chain and SCP. Design/methodology/approach: A questionnaire
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... and structural equation modelling were employed in this work. After a structural and measurement model was devised from existing supply chain literature, the main data were collected in a web-based questionnaire survey of South Korean manufacturers. Structural equation modelling was applied to test proposed hypotheses on the associations between variables, following a hierarchical analysis process. Findings: Innovativeness in the supply chain had a positive impact on both SCI and SCP. However, the direct impact of innovativeness on SCP disappeared when the model included SCI as a mediator. In specific, internal and supplier integration fully mediated innovativeness-SCP relationships, whereas customer integration had no mediating role on those relationships. The findings suggest that innovativeness can influence SCP only when the manufacturer's level of SCI is sufficiently effective in developing necessary supply chain practices. Research limitations/implications: In this work innovativeness in the supply chain effectively influenced SCP through the mediation of SCI. However, cross-sectional analysis in one nation using one response per organisation invites validation embracing other geographical areas and longitudinal studies. Practical implications: Design of an innovative culture within a firm and along a supply chain can enhance SCI practices by stimulating innovativeness. A high level of SCI should be pursued to effectively transform innovativeness into performance. Originality/value: This work seminally examines the effect of innovativeness in the supply chain on SCI and SCP as well as the mediating role of SCI in the relationships between innovativeness and SCP.
doi:10.1108/scm-02-2014-0058
fatcat:uctgwzcngvcv5c3sqwr7uqi7pq