Supply chain planning and innovation performance: the moderated mediation effect of IT usage
| DOI | https://doi.org/10.1108/IMDS-01-2022-0053 |
| Published date | 30 August 2022 |
| Date | 30 August 2022 |
| Pages | 2465-2484 |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
| Author | Yutong Liu,Mingu Kang,Tae-Won Kang,Jian Du |
Supply chain planning and
innovation performance:
the moderated mediation effect of
IT usage
Yutong Liu and Mingu Kang
School of Management, Zhejiang University, Hangzhou, China
Tae-Won Kang
Department of Supply Chain and Logistics, Kunsan National University,
Gunsan, Republic of Korea, and
Jian Du
School of Management, Zhejiang University, Hangzhou, China
Abstract
Purpose –The study aims to figure out theimpact of supply chain planning (SCP) on innovation performance
(IP), the mediating role of agreement on supply chain vision and goals (ASCVG), and the moderated effect of
information technology (IT) use with buyers and suppliers.
Design/methodology/approach –Based on 265 pieces of data collected from global manufacturing companies,
the authors tested the proposed hypothesis through regression analyses. Meanwhile, the plug-in of statistical
software SPSS, PROCESS (Model 4 and 14) was used to examine the mediation and moderated mediation models.
Findings –The results reveal that ASCVG partially mediates the effect of SCP on IP. Furthermore, the indirect
influence of SCP on IP is stronger when the extent of IT use with buyers is higher, while this indirect effect is not
moderatedbyITusewithsuppliers.
Originality/value –In this study, the authors investigated the combined effect of SCP, ASCVG, and IT use
with external partners on IP, which provides theoretical and practical insights into the ways that
manufacturing firms effectively use the SCP, ASCVG and IT use with external partners to heighten IP.
Keywords Supply chain planning, Agreement on supply chain vision and goals, IT use With buyers, IT use
With suppliers, Innovation performance
Paper type Research paper
1. Introduction
Open innovation refers to opening up the traditional closed innovation model of a company
and bringing in external innovation capabilities. H Chesbrough (2003) suggested that the
"closed innovation" model, which is mainly driven by internal resources, has limitations.
Nowadays, companies can seek innovation from many external sources, such as customers,
suppliers, universities, and communities. In this study, we discuss the overall planning of
supply chain members (i.e. suppliers and customers) to make full use of supply chain
resources to achieve open innovation. Open innovation brings many competitive advantages
to firms, such as shortening the time to market, improving the quality of new products, and
spreading the risk of product innovation (Emden et al., 2006;Usman and Vanhaverbeke,
2017). More and more firms use collaborative innovation with supply chain partners to
improve the efficiency of product innovation, which also produces a new innovative model
(Brunswicker and Vanhaverbeke, 2015;H.Chesbrough and Brunswicker, 2014;Spender et al.,
IT usage’s
moderated
mediation
effect
2465
Funding: The authors gratef ully acknowledge th e support of the National Natural Science F oundation
of China (No. 72072160, No. 71832013).
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0263-5577.htm
Received 26 January 2022
Revised 14 June 2022
Accepted 15 July 2022
Industrial Management & Data
Systems
Vol. 122 No. 11, 2022
pp. 2465-2484
© Emerald Publishing Limited
0263-5577
DOI 10.1108/IMDS-01-2022-0053
2017). Supply chain planning (SCP) serves as an important link in the development of supply
chain collaborative innovation, and the overall planning of supply chain partners has an
important impact on the effective operation of supply chain collaborative innovation.
This study aims to figure out the mechanism of SCP influencing innovation performance
(IP). Previous studies have explored the antecedents of SCP, such as data and performance
management resources (Chae et al., 2013). However, there are few empirical studies on SCP in
the area of innovation research, which limits our understanding of the specific role of SCP in
improving firms’IP. Given the huge demand for information, SCP extends beyond focal firms,
because it also involves buyers and suppliers throughout the supply chain (Hvolby et al.,
2007;Stadtler, 2005). According to organizational learning theory, organizational learning is
reflected in changes in organizational knowledge (March, 1991) and is exemplified by sensing
environmental changes and responding to them (Argyris and Schon, 1978). Meanwhile,
knowledge itself is a flow, and its success depends on the web of organizational relationships
(W. Yu et al., 2013). Therefore, SCP becomes a mechanism for transmitting knowledge and
building organizational learning. Furthermore, agreement on supply chain vision and goals
(ASCVG) means that supply chain members agree on vision and goals, which can be a supply
chain integration mechanism to promote IP. Given the lack of motivation among supply chain
members to agree on vision and goals, the overall SCP lays a foundation for supply chain
members to reach consensus. Meanwhile, some scholars have pointed out that external
partners’commitment to vision and goals will further enhance cooperative activities and
facilitate informative transactions (Ryu et al., 2009). Moreover, ASCVG also contributes to
better IP by enhancing the consistency of supply chain members, further improving their
willingness to share knowledge and information (Yang and Huang, 2018), which
demonstrates the need for greater consistency of vision and goals. However, few studies
have examined ASCVG as an integration mechanism to enhance IP. As SCP is increasingly
becoming an important supply chain management practice, revealing its role as an effective
governance mechanism is important.
Additionally, with the development of information technology, manufacturers are increasingly
using IT with external partners (i.e. buyers and suppliers). Previous studies suggest that IT use
with external partners helps firms acquire external knowledge, absorb and apply that know ledge
to meet business needs (Tippins and Sohi, 2003). Meanwhile, IT use with external partners can
support buyer–supplier collaboration in the new product development project (Ayala et al., 2020).
Therefore, IT use with external partners facilitates integration and collaboration among supply
chain members who are agreed on vision and goals, and it is feasible to improve the IP. Thus, we
use IT use with external partners as moderator variables in this study, to provide a more detailed
supply chain management mechanism for IP.
Through quantitative empirical analysis, this study reveals (1) the indirect mediating
mechanism that links SCP to IP through ASCVG and (2) the moderating role of IT use with
external partners in this indirect relationship.
2. Theory background and hypotheses development
2.1 Supply chain planning and innovation performance
SCP (SCP) refers to the coordination, integration, and supervision of firms’key business
activities from the procurement of raw materials to the distribution of final products to
customers (Gupta and Maranas, 2003). SCP encompasses both supply- and demand-oriented
activities to minimize mismatches and thus create and capture value (Braunscheidel and
Suresh, 2009), and SCP has strategical and tactical levels, with focal firms planning their
marketing and supply activities based on information from buyers and suppliers (Laureano
Paiva et al., 2014). SCP is a way to reduce demand uncertainty, not only by reducing
inventory, costs, and lead times, but also by improving forecast accuracy, customer service,
IMDS
122,11
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