Improving manufacturing performance by developing innovative capabilities: the importance of supply chain relationships

This research investigates the relationships between supply chain relationships/integration, innovative capabilities and manufacturing performance. Data was collected from 171 organisations based in three rapidly developing countries – Brazil, India, China. Data was collected as part of the International Manufacturing Strategy Survey (IMSS VI) and analysed using Structural Equation Modelling. The findings indicated that supply chain relationships and integration relate positively to both product and process innovative capabilities. The study also found that there were positive relationships between both product and process innovative capabilities and manufacturing performance. Finally, there was a positive relationship between product innovative capabilities and process innovative capabilities