The purpose of this study is to investigate the roles of potential absorptive capacity (PACAP) and realized absorptive capacity (RACAP) in driving different types of innovation practices, including process, product, marketing and organizational innovation with in the supply chain (SC). Furthermore, this study also seeks to examine the previously unexplored relationship between these SC innovation practices and supply chain risk management (SCRM).
Data were collected from 267 SC professionals working in the export manufacturing industry for hypotheses testing via structural equation modeling.
The results have found that both PACAP and RACAP positively and significantly impact on each practice of SC innovation. The results also show that each SC innovation practices such as product innovation, process innovation and marketing innovation have a positive and significant impact on SCRM except organizational innovation.
This study makes a notable contribution to the broader SC management literature, with a specific focus on absorptive capacity, innovation management and SCRM, areas where empirical research is still emerging. This study reveals that organizations trying to manage SC risk must implement sufficient SC innovation practices by enhancing their PACAP and RACAP for quick response and recovery from SC disruptions.
