Innovation Orientation in Supply Chain and Its Relations to Business Performances : Analysis by Classification Tree

Purpose This study empirically analyzes the impact of innovation orientation on business performances in supply chain Methods Diverse supply chain workers answered the survey using a Likert scale measure. The innovation orientation of supply chain is classified into the dimensions of organization, exploration, and exploitation, whereas business performances are measured by logistics efficiency and financial performance. By applying classification tree technique, several interactive effects of innovation orientation are identified Results The analysis results indicate that many variables of innovation orientation are crucial for improving logistics efficiency as well as financial success for corporations of supply chain. By pairing variables selected for the first split of the trees and the ones for the second split, we attempt to suggest how organizational, explorative, and exploitative innovation can contribute to overall performance of supply chain Conclusion The findings of this study provide valuable empirical lessons about the importance of innovation to all participants of supply chain together with supportive academic literature