The Effects of Process Innovation and Partnership in SCM: Focusing on the Mediating Roles

Abstract

In this study, we examined the impact of supply chain management factors on firm performance, and we focused on the mediating role of process innovation and partnerships. For the analysis, we surveyed 193 workers working in smartphone manufacturing companies. We found that information systems, support of top management, and performance management have positive impacts on a company’s process innovation. The factors that affect partnership are the support of top management and performance management. Process innovation and partnership also positively affect a firm’s financial and nonfinancial performance. Nonfinancial performance also shows effectiveness. Thus, to improve a firm’s supply chain management (SCM) performance, companies should focus on enhancing process innovation and partnerships that positively affect firm performance. Furthermore, this research can serve as a stepping stone for the development of SCM in line with the technological innovation of Industry 4.0.