Unlocking supply chain product and process innovation through the development of supply chain learning capabilities under technological turbulence: Evidence from Egyptian SMEs

Abstract

PurposeIn light of the current challenges in the business environment, firms, particularly those involved in supply chains, must foster innovation. In this context, the current study employs the theory of dynamic organizational capabilities (DOCs) to track supply chain learning capabilities (SCLCs) and independently uncover their relationship to innovation at both the product and process levels. Similarly, the study intends to investigate the influence of technological turbulence (TT) on these relationships as a moderating variable.Design/methodology/approachThe data were gathered using in-person interviews with 189 CEOs with some supply chain management proficiency from small and medium-sized enterprises (SMEs) in the industrial zones of eastern Egypt. The study used a survey approach to collect data, and the SEM-PLS technique was utilized to analyze the data.FindingsStudy findings revealed that SCLCs positively affect product and process innovation. In addition, TT positively moderates the relationship between SCLCs and product and process innovation, except for risk-taking capability. Further theoretical and practical implications are derived from the study findings.Originality/valueThis research adds to the knowledge of the dynamic capabilities theory (DCT), which affects how firms interact with their external environment. Studying learning capabilities are employed as essential competencies to counterbalance high levels of TT in the external environment in terms of innovative performance and vice versa if firms do not attempt to strengthen their dynamic learning capabilities in supply chains. In addition, this study contributes to the literature by studying learning capabilities from the external perspective, where SCLCs are being developed as a new variable to improve innovation.

Is past performance a guarantee for current results? The influence of learning on business performance in manufacturing

“…The manufacturing literature highlights the connection between learning and improvements in operational capabilities (e.g. cost, quality, delivery and flexibility) (Abdelaziz et al. , 2023; Aslam et al.…”

“…, 2020), which positively impact business performance (Rebelo and Gomes, 2011). Learning organisations inspire individuals to create, retain and transfer knowledge within and beyond organisational boundaries (Abdelaziz et al. , 2023).…”

“…Capable firms learn from changes in their company environment, transforming learning into organisational knowledge. Manufacturing researchers have argued that inter-organisational learning often arises from collaborations among supply chain partners (Abdelaziz et al. , 2023; Aslam et al.…”

“…, 2020). Learning from past performance can lead firms to accommodate resources more efficiently and to create new operational capabilities in rapidly changing environments (Abdelaziz et al. , 2023; Aslam et al.…”

“…Previous studies indicate that capabilities development is associated with intra- or inter-organisational learning mechanisms (Abdelaziz et al. , 2023; Al-Khatib, 2023; Aslam et al.…”