The analysis of external supply chain flexibility and product innovation performance

Abstract

The first objective of this study is to analyze the effect of external supply chain flexibility (inbound supplier flexibility and outbound logistics flexibility) on product innovation performance. The second objective is to analyze the effect of external supply chain flexibility on product innovation performance with the lead supplier influence and normative integration as moderating variables. There are six hypotheses in this study: 1) the inbound supplier flexibility affects the product innovation performance, 2) the outbound logistics flexibility affects the product innovation performance, 3) the lead supplier influence moderates the relationship between the inbound supplier flexibility and the product innovation performance, 4) the lead supplier influence moderates the relationship between the outbound logistics flexibility and the product innovation performance, 5) the normative integration moderates the relationship between the inbound supplier flexibility and the product innovation performance, and 6) the normative integration moderates the relationship between the outbound logistics flexibility and product innovation performance. The sample of this study is one hundred fashion SMEs in Sleman Regency, Special Region of Yogyakarta, Indonesia. This study uses census as the sampling method. This study uses primary data obtained by distributing questionnaires to the respondents. The researchers analyzed the data with PLS. The results show that inbound supplier flexibility and outbound logistics flexibility positively affect product innovation performance. The lead supplier influence negatively moderates the effect of inbound supplier flexibility on product innovation performance in fashion. The lead supplier influence does not moderate the effect of outbound logistics flexibility on product innovation performance. Normative integration does not moderate the relationship among the variables of the study.