Data‐Driven Supply Chain Orientation and Financial Performance: The Moderating Effect of Innovation‐Focused Complementary Assets

Wantao Yu, Mark A. Jacobs, Roberto Chavez, Mengying Feng

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    Drawing on the complementary assets framework, this study explores the moderating effect of innovation focused complementary assets (CA-I) on the relationship between a data-driven supply chain orientation (DDSCO) and firm financial performance. To test the moderating effect, survey data gathered from 329 manufacturing firms in China were analysed using a moderated regression analysis. The results indicate that DDSCO has a significant positive effect on financial performance and that capabilities for product and process innovation function as complementary assets moderating the DDSCO–performance relationship. The findings suggest that innovation focused complementary assets are performance differentiators when paired with a DDSCO and explain why some firms obtain financial benefits from the development of a DDSCO while others do not. Specifically, competitive advantage from a DDSCO may not be realized unless CA-I and potentially other complementary assets, are harnessed thus providing useful practical guidance to managers. Hence the study provides empirical support for the complementary assets framework.

    © 2019, British Academy of Management. The attached document (embargoed until 08/05/2021) is an author produced version of a paper published in BRITISH JOURNAL OF MANAGEMENT uploaded in accordance with the publisher’s self- archiving policy. The final published version (version of record) is available online at the link below. Some minor differences between this version and the final published version may remain. We suggest you refer to the final published version should you wish to cite from it.
    Original languageEnglish
    Pages (from-to)299-314
    Number of pages16
    Issue number2
    Publication statusPublished - 8 May 2019

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