Jurnal Internasional
International Journal Logistic Management: Strategic supply chain management factors influencing agribusiness innovation utilization
Abstract
Purpose – The purpose of this paper is to examine empirically, an industry development paradox,
using embryonic literature in the area of strategic supply chain management, together with
innovation management literature. This study seeks to understand how, forming strategic supply
chain relationships, and developing strategic supply chain capability, influences beneficial
supply chain outcomes expected from utilizing industry-led innovation, in the form of electronic
business solutions using the internet, in the Australian beef industry. Findings should add valuable
insights to both academics and practitioners in the fields of supply chain innovation management and
strategic supply chain management, and expand knowledge to current literature.
Design/methodology/approach – This is a quantitative study comparing innovative and
non-innovative supply chain operatives in the Australian beef industry, through factor analysis and
structural equation modeling using PAWS Statistical V18 and AMOS V18 to analyze survey data from
412 respondents from the Australian beef supply chain.
Findings – Key findings are that both innovative and non-innovative supply chain operators attribute
supply chain synchronization as only aminor indicator of strategic supply chain capability, contrary to the
literature; and they also indicate strategic supply chain capability has a minor influence in achieving
beneficial outcomes from utilizing industry-led innovation. These results suggest a lack of coordination
between supply chain operatives in the industry. They also suggest a lack of understanding of the benefits
of developing a strategic supply chain management competence, particularly in relation to innovation
agendas, and provides valuable insights as to why an industry paradox exists in terms of the level of
investment in industry-led innovation, vs the level of corresponding benefit achieved.
Research limitations/implications – Results are not generalized due to the single agribusiness
industry studied and the single research method employed. However, this provides opportunity for
further agribusiness studies in this area and also studies using alternate methods, such as qualitative,
in-depth analysis of these factors and their relationships, which may confirm results or produce
different results. Further, this study empirically extends existing theoretical contributions and insights
into the roles of strategic supply chain management and innovation management in improving supply
chain and ultimately industry performance while providing practical insights to supply chain
practitioners in this and other similar agribusiness industries.
Practical implications – These findings confirm results from a 2007 research (Ketchen et al., 2007)
which suggests supply chain practice and teachings need to take a strategic direction in the twentyfirst
century. To date, competence in supply chain management has built up from functional and
process orientations rather than from a strategic perspective. This study confirms that there is a need
for more generalists that can integrate with various disciplines, particularly those who can understand
and implement strategic supply chain management.
Social implications – Possible social implications accrue through the development of responsible
government policy in terms of industry supply chains. Strategic supply chain management and supply
chain innovation management have impacts to the social fabric of nations through the sustainability of
their industries, especially agribusiness industries which deal with food safety and security. If supply
chains are now the competitive weapon of nations then funding innovation and managing their supply
chain competitiveness in global markets requires a strategic approach from everyone, not just the
industry participants.
Originality/value – This is original empirical research, seeking to add value to embryonic and
important developing literature concerned with adopting a strategic approach to supply chain
management. It also seeks to add to existing literature in the area of innovation management,
particularly through greater understanding of the implications of nations developing industry-wide,
industry-led innovation agendas, and their ramifications to industry supply chains.
Keywords Innovation utilization, Strategic supply chain capability,
Strategic supply chain relationships
Paper type Research paper
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