The impacts of supply visibility and demand visibility on product innovation: the mediating role of supply chain integration
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 2 May 2023
Issue publication date: 13 February 2024
Abstract
Purpose
Drawing on absorptive capacity theory, this study explores the impacts of supply visibility and demand visibility on product innovation (i.e. exploratory and exploitative innovation), and it examines how supplier integration, customer integration and internal integration mediate these impacts.
Design/methodology/approach
The authors employ empirical survey data from 200 Chinese manufacturers and use structural equation modeling to test the proposed relationships.
Findings
The results show that supply visibility is positively related to supplier integration and internal integration and that demand visibility is positively related to customer integration. Furthermore, only customer integration and internal integration positively relate to exploratory and exploitative innovation.
Originality/value
First, this study emphasizes that supply visibility and demand visibility are important sources of a firm's innovation performance and that supply chain integration increases focal firms' capability of exploiting information and facilitates product innovation. Second, the study shows that supply visibility and demand visibility have distinct effects on three dimensions of supply chain integration and exploratory and exploitative innovation. The study also provides significant managerial guidelines for effectively leveraging supply chain visibility and integration in the promotion of product innovation.
Keywords
Acknowledgements
This work is supported by National Natural Science Foundation of China [72091214, 71832009], Jiangsu Funding Program for Excellent Postdoctoral Talent [2022ZB601], and Philosophy and Social Science Research Projects of Jiangsu Universities [2022SJYB1426].
Citation
Hu, M., Jiang, S. and Huo, B. (2024), "The impacts of supply visibility and demand visibility on product innovation: the mediating role of supply chain integration", The International Journal of Logistics Management, Vol. 35 No. 2, pp. 456-482. https://doi.org/10.1108/IJLM-01-2021-0033
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited