The Effect of Supply Chain Integration on New Product Performance: The Mediating Role of Product Innovation Capability

"Mohammad Khair" Saleem Abu Zaid, Khalil Ahmad Al-Hyari

Abstract


This paper aims to analyze the direct effect of supply chain integration in terms of internal and external integration on new product performance as well as the indirect effect through product innovation in the Jordanian small and medium companies. A questionnaire, which was used to collect data, was developed based on previous research. The data was collected from a sample of (205) companies. Simple, multiple, hierarchical and interaction regression techniques were used to test the research hypotheses.
The findings of this research were as follows: There is a direct effect of internal and external integration and the complementarities between them on product innovation. Supply chain integration has an effect on new product performance through external integration. Product innovation has a partial mediating effect on supply chain integration and new product performance. Based on these findings, several recommendations were proposed to enhance product innovation and new product performance by implementing supply chain integration.

Keywords


Supply chain, Internal integration, External integration, New product performance, Innovation, Product innovation capability.

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