The moderating effect of IT capability on the service innovation and supply chain performance

The purpose of this research is to examine the impact of application degrees of service innovation on supply chain performance while using different information technology capabilities. The model was empirically tested using a path analysis method of structural equation modeling to examine the hypothesized relationships. The results addressed service innovation tends to be associated with the increased supply chain performance for traditional companies. This research showed that managerial full support and involvement, cautious selection of the service innovation process and information integration makes the IT applications, service innovation process and readiness to collaborate closely creating business value and promoting operational performance in the supply chain. Finally, the result also found a strong moderator effect of information technology capability on the relationship between the application degree of service innovation and supply chain performance as the corporate operational, supplier and buyer performances.