Influence of Transactional and Moral Orientations on Innovation Performance in Supply Chains

Influence of Transactional and Moral Orientations on Innovation Performance in Supply Chains

Jao-Hong Cheng (Department of Information Management, National Yunlin University of Science and Technology, Douliou, Taiwan) and Mu-Chung Chen (Department of Information Management, National Yunlin University of Science and Technology, Douliou, Taiwan)
DOI: 10.4018/IJISSCM.2016040104
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Abstract

Innovation performance for inter-organizational effect is one way to enhance strategic competitiveness. It is generally agreed that the development of innovation performance facilitates such sustainable management among inter-organization in supply chains. This paper presents a research model comprises five research hypotheses with four constructs, including transactional orientation, moral orientation, dynamic capability and innovation performance. The constructs are measured by well-supported measures in the literature. Structural equation modelling was used to analyze survey data collected from 260 manufacturing firms that were among the top 1,000 Taiwanese manufacturing firms of 2012 listed by Business Weekly. The results of the empirical study suggest that transactional and moral orientation is critical in ensuring the inter-organizational innovation performance as it promotes the dynamic capability in the process.
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1. Introduction

In supply chains, innovation performance is of crucial importance to improve inter-organizational performance and enhance competitive advantages for all members (Damanpour & William, 1984; Damanpour, 1991; Wagner et al., 2002; Chapman et al., 2003; Ulusoy, 2003; Roy et al., 2004; Song et al., 2006; Mandal, 2015). Organization can achieve an objective of sustainable development from that innovation performance through the response of environmental change (Rosner, 1968). Innovation performance is a means that is encouraged to use internal and external ideas or paths to demand changes as the relevant parties look to advance their technology (Chong et al., 2011). For maintaining competitive advantages, companies should enhance inter-organizational interactive relationships that promote innovation performance among collaborative members (Soosay et al., 2008), so inter-organizational innovation performance within a supply chain has become a common practice.

To achieve the advantages of innovation performance and reach sustainable development, it is a critical problem for the members of supply chains to analyse the factors that affect inter-organizational innovation performance. During the last few decades, there have been several inter-organizational innovation performance initiatives that have been widely studied, as shown in Table 1. Research on inter-organizational innovation performance have examined supply chain management practices (Chong et al., 2011) and trust and contract (Wang et al., 2011) among other factors(Lau et al., 2010; Kibbeling et al., 2013; Menguc et al., 2014). In particular, little has been examined the inter-relationship between relational governance and dynamic capabilities that affect innovation performance and these relationships, so it is essential for all the parties involved to be in cooperative behaviors for achieving the benefits of inter-organizational innovation performance. A successful supply chain not only depends on maintaining good relationship but also enhances inter-organizational innovation performance through increased dynamic capabilities between partners.

Table 1.
Previous research summarizing the antecedents to innovation performance in supply chains
Illustrative ResearchContextTheoretical BasisAntecedents to Innovation Performance in Supply ChainsKey Findings or Propositions
Ahuja & Katila (2001) Between firmsTechnological innovation, learning, and resource-based viewAcquisitions and post acquisitionsImpact of technological acquisitions and non - acquisitions in performance innovation.
Laursen & Salter (2006) between supply chain partnersManagerial attention theoryExternal search breadth and depth, Openness and absorptive capacityThrough open search strategies that involve the use of a wide range of external actors and sources to achieve and sustain innovation.
Ebersberger (2010)between supply chain partnersOpen innovation theorySearch, external sourcing, commercialization, and collaboration.Open innovation practices have a strong impact on innovation performance.

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