Purpose: The purpose of this paper is to propose and validate a theoretical model to investigate whether supply chain (SC) innovation positively affects risk management capabilities, such as robustness and resilience in global SC operations, and to examine how these capabilities may improve competitive advantage.Design/methodology/approach: A theoretical model was developed from extant studies and assessed through the development of a large-scale questionnaire survey conducted with South Korean manufacturers and logistics intermediaries involved in global SC operations. The data were analysed using confirmatory factor analysis and structural equation modelling to validate the suggested model.Findings: It was found that innovative SCs have a discernible positive influence on all dimensions of risk management capability, which in turn has a significant impact on enhancing competitive advantage. Therefore, this work provides evidence for the importance of SC innovation and risk management capability in supporting competitive advantage.Research limitations/implications: This study contributes to providing an empirical understanding of the strategic retention of SC innovation and risk management capabilities in the SC management discipline. Furthermore, it confirms and expands existing theories about innovation and competitive advantage.Practical implications: The finding provides firm grounds for managerial decisions on investment in technology innovation and process innovation.Originality/value: This research is the first of its kind to empirically validate the relationships between SC innovation, risk management capabilities and competitive advantage.
2 September 2014 in Supply Chain Management: An International Journal
Purpose: – This purpose of this paper is to study the impact of innovativeness on supply chain integration (SCI) and supply chain performance (SCP) and the role of SCI in mediating between innovativeness in the supply chain and SCP. Innovativeness is an accepted driver to leverage firm performance. SCI and SCP require innovativeness in the supply chain, but their interrelationships have rarely been researched empirically.Design/methodology/approach: – A questionnaire survey and structural equation modelling were used 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.
1 January 2016 in Transportation Research Part E: Logistics and Transportation Review