Antecedents to supply chain innovation

Abstract

Purpose The purpose of this study is to examine organizational and environmental (competition capital scarcity and organization of labor) factors that affect firms' innovation activities within the supply chain. Design/methodology/approach This study empirically examines the factors that affect firms' innovation activities using firm-level data from the last round of Business Environment Enterprise Performance Surveys (BEEPS). The analysis covers major supply chain functions: production delivery and support systems. Findings The study shows that drivers of innovation vary with the type of innovation activity, as such innovation efforts across supply chain functions should prioritize strategic resources that will create competitive advantages. Our results also reveal that sustainability efforts in the Eastern Europe and Central Asia (EECA) region should prioritize labor market reforms over capital market reforms. Originality/value Current research on innovation and supply chain issues does not explicitly analyze innovations that occur in different sustainable supply chain functions and empirical studies that focus on the determinants of innovations in the supply chain network are very limited. The data used in this study cover 30 economies in EECA many of which are low- and middle-income countries and thus contribute to the implementation of sustainable practices in developing countries.