Influence of Transactional and Moral Orientations on Innovation Performance in Supply Chains

Abstract

Innovation performance for inter-organizational effect is one way to enhance strategic competitiveness. It is generally agreed that the development of innovation performance facilitates such sustainable management among inter-organization in supply chains. This paper presents a research model comprises five research hypotheses with four constructs, including transactional orientation, moral orientation, dynamic capability and innovation performance. The constructs are measured by well-supported measures in the literature. Structural equation modelling was used to analyze survey data collected from 260 manufacturing firms that were among the top 1,000 Taiwanese manufacturing firms of 2012 listed by Business Weekly. The results of the empirical study suggest that transactional and moral orientation is critical in ensuring the inter-organizational innovation performance as it promotes the dynamic capability in the process.