Innovate to withstand: how product and process innovation enhance supply chain risk management

Purpose This study investigates how supply chain practices, such as product and process innovations, influence supply chain risk management (SCRM) capabilities, including resilience and robustness, and how these capabilities impact SCRM performance. Drawing on Dynamic Capabilities Theory, it shows how innovation enables firms to sense risks, seize opportunities and reconfigure resources to respond effectively in turbulent environments. Design/methodology/approach The research applies a quantitative, explanatory design using survey responses from 276 professionals in export manufacturing firms in Pakistan. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyze the data, examining model validity and hypothesis testing. Procedural and statistical remedies were applied to address common method variance concerns. Findings Both product and process innovations significantly enhance resilience and robustness. Resilience shows a strong positive effect on SCRM performance, while robustness does not demonstrate a statistically significant impact. Originality/value This study contributes to the supply chain management literature by explaining how supply chain practices, such as product and process innovation, shape supply chain risk management capabilities. This study reveals that firms seeking to manage supply chain risks more effectively need to practice innovation into their supply chain activities and strengthen key capabilities, to ensure faster response and recovery from disruptions.