Supply chain open innovation exploration

Abstract

Innovation remains a vital driver for firms navigating complex and competitive global markets. While traditional models have centered on internal capabilities, the evolution toward open innovation—strategically integrating external knowledge and partnerships—has transformed how firms approach innovation. Despite its growing relevance, the application of open innovation within supply chains remains fragmented and underexamined. This dissertation introduces and develops the concept of supply chain open innovation capability (SCOIC), a higher order capability grounded in the dynamic capabilities framework. The SCOIC captures how firms leverage absorptive capacity, network relationships, collaborative competence, and organizational flexibility to enhance supply chain performance. The study investigated how SCOIC fosters supply chain ambidexterity, defined as the ability to simultaneously pursue efficiency and innovation, and examined its impact on two critical outcomes: supply chain resilience and supply chain sustainability. Using a multi-stage empirical approach with quantitative survey data and analysis through partial least squares structural equation modeling (PLS-SEM), this dissertation also explores the moderating roles of digital transformation maturity and environmental uncertainty. By aligning external innovation with internal strategic execution, this research contributes to both theory and practice by demonstrating how firms can build adaptive, resilient, and sustainable supply chains in dynamic environments.