Value-based supply chain innovation

Supply chain innovation (SCI) is a concept that has been increasingly invoked in practice as well as academic circles in recent years. Extant research has proposed a model of SCI that consists of three interacting components: network structure, technology, and business processes. Based on four explorative case studies, this paper explores how SCI contributes to value creation, value delivery and value capture of a company. The cases have been selected based on their triggers to SCI (top-down vs. bottom-up) and their product clockspeed. Detailed analyses of the cases suggest an interaction between network structure, technology, and business processes to be the appropriate model for describing the SCIs of the selected case companies. Based on the case studies, it is found that the value created from SCI is primarily cost driven, but the implications leave further potential for value delivery to customers. This paper is the first that investigates the interaction between the three components of SCI and how SCI is related to a company’s business value.