Understanding influence of supply chain collaboration on innovation-based market performance

Purpose: In today’s world, supply chain collaboration becomes an essential source of attaining competitive advantage to make the position in the global market in terms of information, expertise and risk-sharing abilities. Hence the purpose of this study is to highlight the understanding of the value and importance of collaboration in innovation and to strategically implement such steps to achieve supply chain collaboration capabilities. Design/methodology/approach: The data of 269 respondents were collected from supply chain professionals belong to the different industrial sectors in Karachi, Pakistan. The data was analyzed by using structural equation modeling. Findings: This study finds that supplier collaboration brings radical as well as incremental innovation. In contrast, internal collaboration brings incremental innovation, whereas collaboration with customers has an insignificant impact on incremental innovation. Furthermore, both types of innovations have a positive and significant influence on market performance. Research limitations/implications: This study's outcome improves the understanding of the types of innovation enhanced by each construct of collaboration. Supply chain experts or managers are motivated to implement innovation to improve the firm's overall market performance. Originality/value: This research will contribute to the literature by sharing the understanding of the relationship among supply chain members as they collaborate for innovation purposes. All supply chains develop a sustainable competitive advantage in market performance.