INDEK Working Paper Series,
Royal Institute of Technology, Department of Industrial Economics and Management

Abstract: Physical supply chains are the medium where innovation practices are usually implemented, whether in the case of introducing new products/processes, or when improving existing designs of products/processes, radically or incrementally. Thus, process and product innovation practices have become an integral part of decisions relating to the management and design of supply chains. This study investigates how innovation implementation is a cornerstone in the decision making process of supply chain configuration. Furthermore, it examines how this relation is manifested with respect to performance. The paper explores the configuration profiles of two major manufacturers based in Italy and Sweden, with globally designed upstream and downstream chains, demonstrating the differences and similarities, while investigating the innovation practices within each firm. The paper draws conclusions on the relation between innovation implementation and supply chain management, in addition to configuration and re-configuration decision making process.

Keywords: Supply Chain Configuration; Innovation practices; Performance

JEL-codes: L25; O32

20 pages, November 18, 2015

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