How Innovation Capability Drives Sustainable Operational Performance in Practices Within Alternative Food Networks: The Mediating Roles of Business Platforms and Community Building

While previous research suggests that innovation capability can enhance sustainable operational performance in sustainable supply chain management practices, empirical insights into the mechanisms underlying this relationship remain limited. Drawing on dynamic capability theory, this study investigates how innovation capability influences sustainable operational performance within the context of Alternative Food Networks (AFNs). Utilizing matched survey data and objective performance metrics from 276 fruit and vegetable preserving and specialty food manufacturing firms in China, the study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) with bootstrapping techniques to test the mediating roles of business platforms and community building. The findings reveal that novelty-centered innovation capability has a significant positive effect on sustainable operational performance, with business platforms serving as a partial mediator in this relationship. In contrast, value-centered community building neither directly influences sustainable operational performance nor mediates the effect of innovation capability. Furthermore, the mediating effect of business platforms is found to be stronger than that of community building. This research presents a novel empirical framework that distinguishes the operational effectiveness of digital platforms in social community building within AFNs, providing managers with a strategic roadmap for prioritizing innovation investments to achieve sustainability.