The antecedents of supply chain innovation among manufacturing firms in Malaysia: a mediating role of competitive advantage

This study aimed to investigate the relationship between supply chain management practices (SCMPs), competitive advantage (CA), and supply chain innovation (SCI) in Malaysian manufacturing firms. Recognizing the necessity of innovation for maintaining market position and addressing uncertainties, firms are increasingly focusing on developing innovative strategies within their supply chains. A quantitative research approach was utilized, employing a stratified sampling technique and a self-administered questionnaire survey. The survey targeted senior managers, middle managers, or support staff who were responsible for supply chain management or logistics functions within Malaysian manufacturing firms. Collected data were used to test the research framework and hypotheses, and multiple regression analysis was conducted to establish the relationship between SCMPs, CA, and SCI. The study identified that strategic supplier partnership, customer relationship management, level of information sharing, quality of information sharing, postponement, lean practices, and supply chain integration significantly enhance supply chain innovation. Competitive advantage was found to mediate the relationship between SCMPs and SCI, accounting for 30.18% of the effect (r = .3018). This indicates that SCMPs directly impact SCI, and competitive advantage amplifies this effect. The findings provide valuable insights for supply chain practitioners and manufacturers. By integrating the right SCMPs and leveraging competitive advantage, firms can significantly improve their SCI. Practitioners are encouraged to consider the mediating effect of competitive advantage when designing supply chain innovations to enhance manufacturing performance. Despite its valuable insights, the study highlights several knowledge gaps and limitations. There is a lack of understanding regarding what constitutes a comprehensive set of SCMPs, and the role of competitive advantage in mediating the effect between SCMPs and SCI is not well explored. Additionally, the research did not consider other potential contributing factors to SCI, such as marketing mix strategies, inventory management, or logistics functions. The research was conducted solely within the manufacturing industry, making the findings industry-specific. Thus, the conclusions may not be applicable to other sectors such as fashion, tourism, or entertainment. However, this study is among the first to address the mediating effect of competitive advantage between SCMPs and SCI. It suggests successful dimensions of SCMPs that can be implemented to gain a competitive advantage and foster supply chain innovation within the Malaysian manufacturing industry. In summary, the study underscores the critical role of strategic supply chain management practices and competitive advantage in driving innovation, providing a framework for other industries and regions to explore similar dynamics.