Effects of Supply Chain Management Practices on Technological Innovation in Restaurant Industry of Pakistan: The Mediating Role of Guanxi

Abstract

The purpose of this research is to find out that what impacts does the supply chain practices leaves on technological innovation. As we all know that Pakistan is the developing country, and the restaurant industry is emerging for the past few years. This study was conducted by using some supply chain practices including strategic supplier partnerships, customer relationships, information quality, information sharing, and internal operations as independent variables, whereas technological innovation as dependent variables. Guanxi used as a mediator. The sample size was 232. We collected data with the help of questionnaires. The sampling technique was Exponential discriminative snowball. The questionnaire consisted of 43 items. Smart PLS was used to analyze structure equation model. Result concluded that supply chain practices impact positively on product and process innovation. Moreover, Guanxi mediates the relation among Strategic Supplier Partnership and Technological Innovation, Information Sharing and Technological Innovation, Internal Operations and Technological Innovation whereas no mediation exists among Customer Relationship and Technological Innovation, Information Quality and Technological Innovation. Decision makers, restaurant owners and managers can use these findings to formulate their strategies to gain competitive advantage. This study helps managers to improve their practices and move towards innovation. This paper will also help researchers in their ongoing research in which guanxi plays the role of mediator.