This paper aims to determine how a strategic innovation framework that integrates the concepts of innovation function, dynamic performance management (DPM) and system-dynamics (SD) modelling can measure performance in a supply chain (SC).
The paper provides a strategic innovation framework for an SC by considering three steps. First, a systemic intervention is presented based on the innovation functions that influence SC performance. Second, an analysis of the system's performance is proposed. Third, a model SD-based simulation is designed. The developed framework is explained by employing a case study of the Colombian pig sector SC.
The results reveal that identifying and synchronising the system's performance drivers associated with the innovation functions could improve the inventory in the SC.
On the one hand, managers can use the proposed framework to evaluate the innovation investments and understand their impact on operation performance (e.g. on inventories). On the other hand, policymakers may support decision-making to improve policy design (e.g. through investment in R&D).
Few studies discuss the impacts of innovation functions on SC performance. This paper aims to fill this theoretical gap and to contribute to the literature by suggesting a novel framework which includes innovation functions.
