The Role of Information Technology and Supply Chain Collaboration in Enhancing Innovation

Abstract

The impact of information technology on innovation has been extensively examined in recent scholarly works. However, there is limited research explaining its entire supply chain process. To address this deficiency, the purpose of the current study is to evaluate the impact of information technology on supply chain collaboration and supply chain collaboration on innovation. The study also aims to determine the indirect impact of information technology on innovation via supply chain collaboration. A quantitative research design has been adopted to achieve the study's objectives. The data was collected from 348 employees in Indonesia using a basic random sampling technique. This study evaluates the research model using the partial least squares structural equation model (PLS-SEM) method. This study confirms the direct connection between information technology and supply chain collaboration and between supply chain collaboration and innovation. This paper provides empirical support for mediating information technology and innovation relationships in supply chain collaboration.