Innovation-oriented supply chain integration for combined competitiveness and firm performance

This study examined the combined impact of an innovation orientation, supply chain integration (customer integration, supplier integration, and internal integration), and combinative competitive capabilities on firm performance. A total of 480 questionnaires were collected from companies in the Taiwanese electronics industry. Structural equation modeling (SEM) was employed to analyze the collected data. An innovation orientation was shown to positively affect supply chain integration, combinative competitive capabilities, and firm performance. Supply chain integration (in particular, supplier integration and internal integration) had a mediation effect on innovation orientation and business performance, whereas combinative competitive capabilities had a mediation effect on supply chain integration and firm performance. The results provide empirical support for the notion that an innovation orientation affects supply chain integration and firm performance. Drawing from previous studies on resource dependence theory, this study indicates how innovation orientation assists firms in integrating their supply chains and realizing the potential of the supply chain management mechanism. This paper presents the interrelatedness of innovation orientation, supply chain integration, combinative competitive capabilities, and firm performance.