Digital Innovation and Firm Environmental Performance: The Mediating Role of Supply Chain Management Capabilities

Abstract

Given the omnipresence and profoundness of the ongoing pandemic from the Coronavirus disease 2019, its potential spread can be minimized through social distancing. However, this practice causes increasing difficulties and undesirability of traditional transactions or interactions. Accordingly, various manufacturing firms around the world have become more committed not only to accelerating the development of digital technologies, but also to integrating them with existing processes. In this study, we address an important issue of how manufacturing firms can adapt to the ever-changing volatility and unpredictable global business environment, and achieve sustainable growth by developing a strong supply chain management capability. Two specific interrelated research questions are considered: (1) How do supply chain management capabilities contribute to firm environmental performance; and (2) What are the sources of such capabilities? In so doing, we integrate various forms of digital innovation into a supply chain management capability logic to explore their antecedents and consequences. By using survey data from 272 manufacturing firms in China, we examine the relationship between three key forms of digital innovation (i.e., product, platform, and service) and firm environmental performance. Results show that digital product, platform, and service innovations all have positive contributions to supply chain management capability. In turn, supply chain management capabilities have a partial mediating effect between digital product innovation and firm environmental performance, but a full mediating effect between digital platform and service innovations and firm environmental performance.

Relational Approaches Related to Digital Supply Chain Management Consolidation

“…The findings confirm the previous research (such as [11,12,35] and others) and point to the fact that digital SCM provide agility, flexibility, security and openness, which aid in achieving superior performance in these highly competitive, complex global marketplaces.…”

“…They provide a methodology built on the supply chain operations reference (SCOR) model and connected to lean thinking ideas. Using survey data from 272 Chinese manufacturing companies, Wang and Teng [12] examine the relationship between three significant categories of digital innovation (product, platform and service) and business environmental performance. The results show that improvements in digital platforms, products and services all enhance the capacity of supply chains.…”

Research on the influence mechanism of digital innovation in high‐tech enterprises — An inter‐organizational perspective

“…In the era of the digital economy, digital technology is the primary resource for enterprises. In the field of high technology, digital innovation has become the primary driver for businesses to gain competitive advantages on a global scale (M. Wang & Teng, 2022). Organizational factors play a crucial role in enterprise digital innovation.…”

Research on the Synergic Influences of Digital Capabilities and Technological Capabilities on Digital Innovation

“…Major countries in the world encourage enterprises to carry out digital innovation and regard it as the main driving force for enterprise development. Digital innovation has become a compulsory course for enterprise survival and sustainable development, so it has become the consensus of all industries to develop digital innovation [1,2].…”

“…In view of the continuing widespread prevalence of coronavirus since 2019, whose potential transmission can be minimized through social restrictions, more and more difficulties with traditional transactions or interactions have emerged and they have become unpopular. Therefore, various manufacturing enterprises around the world are more committed to accelerating the development of digital technology [2]. In addition to recognizing the importance of digital technology, enterprises also need to have other capabilities to manage and make the best use of digital technology in the innovation process because enterprises need to accelerate the innovation process by integrating various capabilities and mobilizing human resources to exploit technological advantages and rationally make use of resources [10].…”