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The impact of supply chain relationships and integration on innovative capabilities and manufacturing performance: the perspective of rapidly developing countries

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  • Dotun Adebanjo
  • Pei-Lee Teh
  • Pervaiz K. Ahmed

Abstract

The purpose of this research is to investigate the relationships between supply chain relationships/integration, innovative capabilities and manufacturing performance. The study adopts Institutional Theory and Resource-Based View Theory to assess relationships in 171 organisations drawn from three rapidly developing countries – Brazil, India and China. Data were collected using the International Manufacturing Strategy Survey (IMSS VI) and analysed using structural equation modelling. The study found that supply chain relationships and integration relate positively to both product and process innovative capabilities. The study also found that both product and process innovative capabilities relate positively to manufacturing performance. Furthermore, there was a positive relationship between product innovative capabilities and process innovative capabilities. The findings provide new insights into manufacturers in the three countries and show that the relationships they build with their customers have encouraged them to develop new innovative capabilities. These new capabilities, in turn, have enabled them to reap benefits of improved manufacturing performance.

Suggested Citation

  • Dotun Adebanjo & Pei-Lee Teh & Pervaiz K. Ahmed, 2018. "The impact of supply chain relationships and integration on innovative capabilities and manufacturing performance: the perspective of rapidly developing countries," International Journal of Production Research, Taylor & Francis Journals, vol. 56(4), pages 1708-1721, February.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:4:p:1708-1721
    DOI: 10.1080/00207543.2017.1366083
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    Cited by:

    1. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    2. Ahmed, Waqar & Najmi, Arsalan & Ikram, Minhaj, 2020. "Steering firm performance through innovative capabilities: A contingency approach to innovation management," Technology in Society, Elsevier, vol. 63(C).
    3. Yunhui Zhao & Ningshuo Zhang & Taiwen Feng & Chuanli Zhao & Jianming Zhang, 2020. "The green spillover effect of green customer integration: Does internal integration matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 325-338, January.
    4. Amna Farrukh & Sanjay Mathrani & Aymen Sajjad, 2023. "An exploratory study of green‐lean‐six sigma motivators for environmental sustainability: Managerial insights from a developed and developing economy," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5187-5210, December.
    5. Hengbin Yin & Muhammad Mohsin & Luyao Zhang & Chong Qian & Yan Cai, 2022. "Accessing the Impact of FDI Goals on Risk Management Strategy and Management Performance in the Digital Era: A Case Study of SMEs in China," Sustainability, MDPI, vol. 14(22), pages 1-20, November.
    6. Bora Ly, 2024. "The Interplay of Digital Transformational Leadership, Organizational Agility, and Digital Transformation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4408-4427, March.
    7. ur Rehman, Attique & Shakeel Sadiq Jajja, Muhammad & Farooq, Sami, 2022. "Manufacturing planning and control driven supply chain risk management: A dynamic capability perspective," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    8. Gastaldi, Luca & Lessanibahri, Sina & Tedaldi, Gianluca & Miragliotta, Giovanni, 2022. "Companies’ adoption of Smart Technologies to achieve structural ambidexterity: an analysis with SEM," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    9. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    10. Shah, Syed Aamir Ali & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Servitization and supply chain integration: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 229(C).
    11. Wen-Kuo Chen & Venkateswarlu Nalluri & Man-Li Lin & Ching-Torng Lin, 2021. "Identifying Decisive Socio-Political Sustainability Barriers in the Supply Chain of Banking Sector in India: Causality Analysis Using ISM and MICMAC," Mathematics, MDPI, vol. 9(3), pages 1-23, January.
    12. Ravi Shankar & Laxmi Gupta, 2024. "Modelling risks in transition from Industry 4.0 to Industry 5.0," Annals of Operations Research, Springer, vol. 342(2), pages 1275-1320, November.

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