Relationship between market orientation, supply chain integration and innovation performance: is innovation capability a necessity?

This study proposed a moderating framework to explain the relationship between market orientation (MO), supply chain integration (SCI), innovation capability (IC) and innovation performance (IP). Within the theoretical framework, IC moderated the interrelationship between MO and SCI on innovation performance. Thus, indicating its significance on the national economies, prioritising on Malaysian manufacturers. This study implements quantitative approach with data collected from survey delivered to 105 Malaysian manufacturers. PLS SEM was used for hypotheses testing and data analyses. The findings projected MO and SCI as direct influencers of IP, while IC positively moderate MO, SCI - IP relationship. Based on the results, manufacturing managers should exert more effort in MO and SCI for better firm's innovation performance. This study is limited to manufacturing industry in Malaysia and suggested to be scrutinised in research within different industries and countries. This research delivers theoretical and managerial contributions. There is no study exploring the combinative effects of all constructs. The scholars later found out there is positive moderating effect of IC on the relationship proposed. Thus, manufacturing managers are encouraged to invest in companies' MO, SCI and IC to acquire competitive advantages and improve their firms' innovation performance.