Supply Chain Collaboration Components Enhancing Firm Performance of Manufacturers in Vietnam: Innovation Capability Moderation

Abstract

This study aims to investigate the components of supply chain collaboration, their impacts on firm performance, and the moderation of innovation capability on the relationship between supply chain collaboration components and firm performance in the real world of manufacturing companies in Vietnam.

A two-phase approach, including exploratory factor analysis and confirmatory factor analysis in structural equation modelling with the support of SPSS/AMOS 20 is conducted to verify the proposed hypotheses based on supply chain collaboration activities of 241 manufacturing firms in Vietnam under the extended resource-based view—capability-based approach—specifying innovation capability. The results indicate that six supply chain collaboration components—information sharing, goal congruence, joint knowledge creation, incentive alignment, resource sharing, and collaborative communication—have a significant impact on firm performance, while decision synchronisation has no statistically proven impact on firm performance. Particularly, collaborative communication has the greatest positive impact, and innovation capability can considerably alter the positive relationship between supply chain collaboration components and firm performance. Accordingly, manufacturing companies in Vietnam and their supply chain partners should strategically prioritise resources for supply chain collaboration activities and capitalise on potential networks to foster an inter-organizational learning-oriented culture for improving innovation capability and achieving firm performance.