Core Competences, Supply Chain Partners' Knowledge-Sharing, and Innovation: An Empirical Study of the Manufacturing Industry in Taiwan

One of the most significant changes in the paradigm of business management is the fact that individual businesses no longer compete as solely autonomous entities, but rather as partners in supply chains. Supply chain integration has been elevated to a strategy level for sustainable competitive advantage. Within a supply chain, an enterprise must first understand how to use its core competences to increase innovation. Knowledge-sharing within the supply chain could then be used to strengthen the effect of core competences on innovation. This study surveyed the manufacturing industry in Taiwan in order to examine the research model using hierarchical regression analysis (HRA). Results showed that: (1) threshold capabilities, critical capabilities, and cutting-edge capabilities positively affect innovation; (2) the level of knowledge reception among supply chain partners positively affects innovation; (3) the level of knowledge reception could strength the effect of threshold capability on innovation; and (4) a high level of knowledge reception could weaken the positive effect of critical capabilities and cutting-edge capabilities on innovation.