TECHNOLOGICAL INNOVATIONS ADOPTED FOR SUPPLY CHAIN IMPROVEMENT IN MANUFACTURING SECTOR AND ITS IMPACT ON FIRM PERFORMANCE: AN EMPIRICAL ANALYSIS

Abstract

The acceptance of technological innovation is rapidly changing supply-chain management (SCM) and enhancing the performance of the firms in the manufacturing industry. This paper examined how various technological drivers such as a blockchain-based traceability, collaborative new-product development, human-computer-interaction (HCI) to provide AI, manufacturing servitization, re-distributed manufacturing, SCM improvement practices, and SCM innovation to risk management have impacted the performance of firms. The predictive structural model was tested based on the Dynamic Capabilities Theory and the Technology Acceptance Model (TAM) on survey data gathered on senior practitioners working in the supply-chain industry (n=442). The article discovered that all seven of them had a significant and positive contribution to firm performance. The HCI and SCM innovation are the most influential predictors, which are risk management and AI adoption respectively. The study contributes greatly because it integrates various technological constructs into one framework and contributes to the literature on the digitalization of SCM. The research also mixes macro-level dynamic capabilities with micro-level technology acceptance view; and also shows a high level of predictive power of tested model with PLS-SEM. The results emphasized that companies need to use a portfolio approach to technological innovation, giving preference to AI systems designed as user-centered, blockchain to promote transparency, collaboration to make predictions, and innovative risk-management solutions.