Accepted: 28 July 2016The aim of this study is to empirically examine the impact of supply chain dynamic capabilities on operational performance, and the mediating effect of technological innovation between dynamic capabilities and operational performance. This study is based on empirical data collected from a survey of 206 small-and medium-size firms in Korea. Structural equation modeling is used to test the research questions. The results show that supply chain dynamic capabilities positively influence technological innovation and operational performance of an enterprise. Additionally, structural equation analyses reveal that technological innovation plays a role as a partial mediator of the relationship between supply chain dynamic capabilities and operational performance. In a dynamic and ever-changing environment, the enforcement of dynamic capabilities in a sustainable supply chain is important for the innovation of technology and the improvement of operational performance. Further investigation is required to understand the differences by industries, characteristics of enterprises, and positions in a supply chain.Keywords supply chain management, dynamic capabilities, supply chain dynamic capabilities, technological innovation, operational performance.
IntroductionDue to the acceleration of the global economy, the rapid progress of information technology, and the various expectations of customers, today's business environment is rapidly changing and competition among enterprises has intensified. In the past the technology transfer from one industry to another did not occur or was a slow process. Due to the rapid growth of technological innovation and globalization, a technology developed for one industry is quickly transferred to another. This creates a great ripple effect throughout the industry. This ever-changing business environment prevents enterprises from sustaining their competitive positions as well as from allowing for the time necessary to diagnose changes in the business environment, discover opportunities and risks, and to deal with them in a timely manner.Therefore, the dynamic capabilities theory has been implemented in business environments where dynamic capability is required in order for an organization to remain sustainable. Dynamic capability refers to the capability of an organization to integrate and reorganize its internal and external resources [1][2][3][4]. By implementing the dynamic capabilities theory, an organization is given the opportunity to create enterprise values such as management innovation, sus-
Management and Production Engineering Reviewtainable competitive advantage, and operational performance through dynamic capability. The dynamic capabilities theory is based on the resource-based view [5, 6] and the core competency theory [7,8]. According to the resource-based view, organizational performance is created from the capability and differences in resources an organization holds, which are valuable, rare, imperfectly imitable, and nonsubstitutable [6]. The...