The impact of supply chain innovation on competitive advantage in the construction industry: Evidence from a moderated multi-mediation model

Abstract The purpose of this study is to propose and validate a theoretical model to investigate the mediating effect of risk management capabilities (RMCs) on the relationship between supply chain innovation (SCI) and competitive advantage (CA). In addition, by utilizing contingent resource-based theory, we propose a moderating effect of the buyer-supplier relationship on the relationships between SCI and RMCs (i.e. robustness and resilience). We collected data through a survey with time-lagged observations in the construction industry in Pakistan. Structural Equation Modelling (PLS-SEM) was used in the study to investigate the theoretical framework. Our results show a positive impact of SCI on CA through the two risk management capabilities (mediating effect). Further, the findings provide evidence for the moderating effect of the buyer-supplier relationship on the SCI-CA relationship, with resilience capability as a mediator. However, the moderated mediation effect of the buyer-supplier relationship and robustness capability is not supported by our data. Our study addresses the question of the contribution of SCI to robustness and resilience capabilities and finally its impact on the competitive advantage of firms in the construction sector. Our study contributes to the empirical research on SCI and validates a model that links it to CA through the robustness and resilience capabilities of firms in the construction sector. Our study also provides insights for managerial decisions on investment in technology and process innovations and shows that SCI and RMCs are both necessary to achieve competitive advantage.