Examining the process R&D investment-performance chain in supply chain operations: The effect of centralization

There remains inconclusive evidence about the impact of R&D investment on firm performance. This research theorizes an investment-performance consecution cast in a supply chain framework to fill in these gaps through resource orchestration theory. We examine how process R&D investment as a key resource and enabler of knowledge generation impacts firm performance through a “chain of events” that includes internal knowledge application and supply chain operations process variance. Further, we investigate the moderating effect of a critical organizational structure dimension: centralized decision-making regarding supply chain operations. Findings support the contention that the chain is weakened when supply chain decision-making is centralized, thereby indicating that this dimension of organizational structure has profound effects on the efficacy of the process R&D investment decision.