Enhancing Supply Chain Risk Management Capabilities Through Product and Process Innovation
DOI: https://doi.org/10.65967/cpbo.v2i2.59
Innovation Capability, Supply Chain Risk Management, Supply Chain Resilience, Process Innovation, Product Innovation
Abstract
This study examines the influence of supply chain innovation practices, specifically product innovation and process innovation, on supply chain risk management (SCRM) capabilities and performance. Grounded in Dynamic Capabilities Theory, the research argues that innovation enables firms to identify risks, capitalize on emerging opportunities, and reconfigure resources effectively in uncertain business environments. Using a quantitative explanatory approach, data were collected from 276 professionals working in export-oriented manufacturing firms in Pakistan and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that both product and process innovation significantly strengthen supply chain resilience and robustness. Furthermore, resilience has a significant positive impact on SCRM performance, whereas robustness does not show a statistically significant effect. These results highlight the importance of integrating innovation into supply chain activities to enhance risk management capabilities, improve responsiveness to disruptions, and support faster recovery in dynamic and challenging environments. The study contributes to the supply chain management literature by providing empirical evidence on the role of innovation in developing effective SCRM capabilities and improving organizational performance.
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