Volume 30, Issue 1, 2021
DOI: 10.24205/03276716.2020.2047
Enhancing the Effects of Service Innovation in Supply Chains: Insights from contingency theory and boundary spanning perspectives
Abstract
This paper considers contingency theory and boundary spanning perspectives to examine how supply chain flatness affects service innovation via demand response, inter-organizational systems, and information sharing when firms adopt IoT technology. The model is tested on data collected from 295 top manufacturing firms in Taiwan, using structural equation modeling. The results of this empirical study suggest that supply chain flatness is critical for ensuring service innovation, as it reinforces demand response and information sharing between supply chain members. The study findings provide useful insights into how parties should reinforce their supply management orientation to improve supply chain flatness, demand response, and information sharing, and in turn enhance service innovation in adopting IoT technology for the entire supply chain.
Keywords
supply chain flatness, inter-organizational systems, demand response, service innovation, contingency theory, boundary spanning