Role of the Collaboration Innovation Network and Their Impact on the Supply Chain Performance

Abstract

The purpose of this research is to understand the effect of a collaborative innovation network on innovation capabilities and supply chain performance of a firm. This paper investigates the direct and indirect impact of the collaborative innovation network on supply chain performance. A survey was conducted on the manufacturing firms of Pakistan and the model was tested with the Smart PLS 3 software using the structural equation model (SEM). Firms are selected as units of analysis for this research. The analysis results show that the collaborative innovation network has an insignificant direct effect on supply chain performance and product innovation capabilities; whereas, it shows a positive effect on process innovation capabilities. Product innovation capability shows a significant impact on supply chain performance, while process innovation capabilities have a significant impact on both product innovation capability and supply chain performance. This study aims to identify the direct and indirect effect of the collaborative innovation network on supply chain performance and what strategies can be adopted by the managers to enhance the supply chain performance of their firms.