Abstract
A fundamental principle of the resource-based (RBV) of the firm is that the basis for a competitive advantage lies primarily in the application of bundles of valuable strategic capabilities and resources at a firm's or supply chain's disposal. These capabilities enact research activities and outputs produced by industry funded R&D bodies. Such industry lead innovations are seen as strategic industry resources, because effective utilization of industry innovation capacity by sectors such as the Australian beef industry is critical, if productivity levels are to increase. Academics and practitioners often maintain that dynamic supply chains and innovation capacity are mechanisms most likely to deliver performance improvements in national industries. Yet many industries are still failing to capitalise on these strategic resources. In this research, we draw on the resource-based view (RBV) and embryonic research into strategic supply chain capabilities to investigate how two strategic supply chain capabilities (supply chain performance differential capability and supply chain dynamic capability) influence industry-led innovation capacity utilization measured through perceptions of supply chain operatives of superior supply chain performance enhancements. Two models compare the influence of size of supply chain operatives on these factors and their relationships. Results indicate that both small and large supply chain operatives in this industry believe these strategic capabilities influence and function as second-order latent variables of strategic supply chain capability. Additionally the study confirms that size of the supply chain operative influences how the respondents perceived strategic capabilities influence supply chain performance enhancement expected from utilizing industry-led innovation capacity in this industry.
Highlights
National industries rely on their supply chains and innovation capacities to deliver sustainability and enduring global competitiveness
There was a .083 standard deviation increase in ILICU for small operatives, and a .049 standard deviation increase in ILICU for larger operatives. Both levels of operatives agree that supply chain performance differential capability (SCPDC) does influence ILICU and in turn leads to positive financial benefits (FB), operation efficiencies (OE) and growth factors (GF) for the supply chain
Implications and Limitations Using Structural Equation Modelling (SEM) to accomplish the aggregated tasks of modelling, testing and gaining some reliability and validity to the outcomes is well represented in the literature (Shook et al, 2004)
Summary
National industries rely on their supply chains and innovation capacities to deliver sustainability and enduring global competitiveness. Only limited empirical research combines both topics, in terms of investigating innovation capacity within mature industry supply chains (Burgess, 2007). Supply chain studies continue to maintain a narrow focus, reflecting the views of only one or a small number of supply chain participants (Hult et al, 2002). Taking that approach does not reflect the true nature of a supply chain. Empirical insights that are drawn from multiple chain participants are needed to understand the efficiency enhancement possible through supply chain management”
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