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The combined effects of internal and external supply chain integration on product innovation

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  • Wong, Christina W.Y.
  • Wong, Chee Yew
  • Boon-itt, Sakun
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    Abstract

    This research examines the individual and combined effects of internal integration (II) and external integration (EI) on product innovation. Two combined effects—balanced integration and complementary integration—are examined. Based on ambidexterity theory, the combined effects of II and EI are theorised to facilitate exploration and exploitation of external and internal knowledge, and subsequently improve product innovation. Our analysis of survey data from the Thai automotive industry ascertains that EI and complementary integration are positively associated with product innovation, but II and balanced integration are not associated with product innovation. This research is the first to provide novel insights into how exploration and exploitation of external and internal knowledge can be facilitated by internal and external integrations, and their complementary effects on product innovation, which was previously less understood. Our findings provide managerial insights for firms involved in supply chain integration implementation.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 146 (2013)
    Issue (Month): 2 ()
    Pages: 566-574

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    Handle: RePEc:eee:proeco:v:146:y:2013:i:2:p:566-574

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Supply chain integration; Innovation; Ambidexterity; Automotive industry; Thailand;

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    1. Lee Cronbach, 1951. "Coefficient alpha and the internal structure of tests," Psychometrika, Springer, vol. 16(3), pages 297-334, September.
    2. Ghemawat, Pankaj & Ricart, Joan E., 1993. "Organizational tension between static and dynamic efficiency, The," IESE Research Papers D/255, IESE Business School.
    3. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    4. Vijayasarathy, Leo R., 2010. "Supply integration: An investigation of its multi-dimensionality and relational antecedents," International Journal of Production Economics, Elsevier, vol. 124(2), pages 489-505, April.
    5. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
    6. Azadegan, Arash & Wagner, Stephan M., 2011. "Industrial upgrading, exploitative innovations and explorative innovations," International Journal of Production Economics, Elsevier, vol. 130(1), pages 54-65, March.
    7. Karkkainen, H. & Elfvengren, K., 2002. "Role of careful customer need assessment in product innovation management--empirical analysis," International Journal of Production Economics, Elsevier, vol. 80(1), pages 85-103, November.
    8. Caridi, Maria & Pero, Margherita & Sianesi, Andrea, 2012. "Linking product modularity and innovativeness to supply chain management in the Italian furniture industry," International Journal of Production Economics, Elsevier, vol. 136(1), pages 207-217.
    9. Ragatz, Gary L. & Handfield, Robert B. & Petersen, Kenneth J., 2002. "Benefits associated with supplier integration into new product development under conditions of technology uncertainty," Journal of Business Research, Elsevier, vol. 55(5), pages 389-400, May.
    10. Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
    11. Henrich R. Greve, 2007. "‘Exploration and exploitation in product innovation’," Industrial and Corporate Change, Oxford University Press, vol. 16(5), pages 945-975, October.
    12. Zhaohui Zhu & Jin Chen, 2012. "Balancing explorative and exploitative learning under open innovation: an empirical study in China," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 5(4), pages 385-407.
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