Global Supply Chain: A Conceptual Study of the Effect of Globalization on Product and Process Innovation

While successful performance in terms of cost savings for firms expanding beyond their home boundaries has been well noted in the literature. Other factors, such as product and process innovation gained through this global process, have not been well examined. The aim of this study is to answer four specific research questions: 1) What are the reasons for going global in today’s economy? 2) How can a global supply chain lead to increased innovation? 3) What are the specific ways that companies can gain product and process innovation in a global supply chain? 4) What is a model that can be examined for future research?This literature review examines areas of human resource management and supply chain management through the theory of absorptive capacity in a rapidly expanding global environment. In addressing the four main questions, this review will present emerging research issues for global supply chains.