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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

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.

Suggested Citation

  • Wong, Christina W.Y. & Wong, Chee Yew & Boon-itt, Sakun, 2013. "The combined effects of internal and external supply chain integration on product innovation," International Journal of Production Economics, Elsevier, vol. 146(2), pages 566-574.
  • Handle: RePEc:eee:proeco:v:146:y:2013:i:2:p:566-574
    DOI: 10.1016/j.ijpe.2013.08.004
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    References listed on IDEAS

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    Cited by:

    1. Yan, Tingting & Azadegan, Arash, 2017. "Comparing inter-organizational new product development strategies: Buy or ally; Supply-chain or non-supply-chain partners?," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 21-38.
    2. Lii, Peirchyi & Kuo, Fang-I, 2016. "Innovation-oriented supply chain integration for combined competitiveness and firm performance," International Journal of Production Economics, Elsevier, vol. 174(C), pages 142-155.
    3. Franck Brulhart & Uche Okongwu & Btissam Moncef, 2015. "Causal linkages between supply chain management practices and performance: a balanced scorecard strategy map perspective," Post-Print halshs-01239670, HAL.
    4. Rajeev Mukundan & Sam Thomas, 2016. "Collaborative and open innovation: supply chain planning as an effective source," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 12(1), pages 128-140.
    5. Wong, Chee Yew & Wong, Christina W.Y. & Boon-itt, Sakun, 2017. "Do arcs of integration differ across industries? Methodology extension and empirical evidence from Thailand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 223-234.
    6. Wong, Christina W.Y. & Lai, Kee-hung & Bernroider, Edward W.N., 2015. "The performance of contingencies of supply chain information integration: The roles of product and market complexity," International Journal of Production Economics, Elsevier, vol. 165(C), pages 1-11.
    7. Zhang, Min & Zhao, Xiande & Voss, Chris & Zhu, Guilong, 2016. "Innovating through services, co-creation and supplier integration: Cases from China," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 289-300.
    8. Acar, Yavuz & Atadeniz, Sukran Nilvana, 2015. "Comparison of integrated and local planning approaches for the supply network of a globally-dispersed enterprise," International Journal of Production Economics, Elsevier, vol. 167(C), pages 204-219.
    9. repec:eee:proeco:v:191:y:2017:i:c:p:143-153 is not listed on IDEAS

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