Matching traceability and supply chain coordination: Achieving operational innovation for superior performance

Operational innovation is effective in overcoming supply chain challenges and achieving superior performance. In this study, we build on the socio-technical system (STS) perspective to explore operational innovation in the supply chain context. Specifically, a system comprising traceability and supply chain coordination (SCC) is proposed as a type of Internet-based operational innovation. Survey data of manufacturing firms were analyzed by a configuration approach. Three clusters of firms were identified with distinct configurations of traceability and SCC. As predicted by the STS perspective, firms can realize operational innovation by matching traceability and SCC properly, thereby achieving superior operational performance and customer satisfaction. Our findings expand the understanding of operational innovation in the supply chain context. This study contributes to the literature of operational innovation, STS and supply chain management. Managerial implications about operational innovation in Internet-based supply chain management are provided.