How Do Supply Chain Integration and Product Innovation Capability Drive Sustainable Operational Performance?

Asif Arshad Ali and Asif Mahmood ()
Additional contact information
Asif Arshad Ali: Department of Business Administration, National College of Business Administration & Economics (NCBA&E), Main Campus Gulberg, Lahore 54660, Pakistan
Asif Mahmood: Department of Innovation and Technology Management, Arabian Gulf University, Manama 329, Bahrain

Sustainability, 2023, vol. 16, issue 1, 1-20

Abstract: This study analyzes the influence of supply chain integration dimensions (internal integration and external integration) on the product innovation capability (market knowledge and product development) and operational performance of manufacturing firms, considering product innovation capability as a mediator. A purposive sampling method was used, and data were collected through a survey completed by 129 medium and large manufacturers in Pakistan and analyzed using the structural equation modeling technique. The results show internal and customer integrations are not directly related to operational performance. Furthermore, supplier integration was positively related to both product innovation capability and operational performance. Likewise, the link between product innovation capability and operational performance is positive. The study uniquely evaluates that product innovation capability positively mediates the impacts of internal and external integration on operational performance. The outcomes of this study will help managers of manufacturing firms boost their firms’ product innovation capability and operational performance by focusing on supply chain integration. Moreover, to achieve sustainability in the supply chain, practitioners are provided with directions on operationalizing supply chain integration. The study uniquely identifies the mediation effects of product innovation capability (market knowledge and product development) between internal and external integration and operational performance.

Keywords: supply chain integration; product innovation capability; operational performance; manufacturing organizations (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/1/277/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/1/277/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2023:i:1:p:277-:d:1309077

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().