Achieving supply chain agility through innovation capability building

Abstract

Few studies have examined the innovation capability perspective in the context of supply chain, and in particular toward achieving supply chain agility. The purpose of this study was to deepened our understanding of how a focal firm, in conjunction with customers, suppliers, and other supply chain members build innovation capability, leading to supply chain agility. Using qualitative case study approach, this paper explores how focal firms together with supply chain members build innovation capability, leading to supply chain agility. The study reveals that supply chain members play a critical role in influencing how a focal firms build their innovation capability to swiftly respond to increasing change in customers' existing and potential need through agile supply chains. Drawing inspiration from theories of resource-based view of the firm and dynamic capability, this study contributes to growing streams of literature on innovation capability by explaining how supply chains build innovation capability, leading to supply chain agility. Building innovation capability in conjunction with supply chain members is crucial for achieving supply chain agility (e.g. improved customer service, new product introduction, product customisation and international delivery capacity).