Unleashing supply chain innovation and frugal innovation: examining the interaction between institutional pressures and supply chain analytics adoption

PurposeThis study investigates the effects of institutional pressures on the adoption of supply chain analytics (SCA) and its subsequent impact on supply chain (SC) innovation and frugal innovation. It also examines the correlation between SC innovation and frugal innovation.Design/methodology/approachThe study collected data from manufacturing companies in Jordan. PLS path analysis is applied.FindingsThe PLS path analysis showed that coercive pressures did not significantly affect the outcome, but both normative and mimetic ones were found to have significant effects on SCA adoption. The study also shows that SCA plays a significant role in SC innovation and frugal innovation. Furthermore, it demonstrates that SC innovation significantly impacts frugal innovation.Originality/valueOverall, these findings provide valuable theoretical implications to the literature by advancing our understanding of the interactive relationships between institutional pressures, SCA, SC innovation and frugal innovation. Understanding the role that institutional pressures play in SCA adoption and its subsequent impact on SC innovation and frugal innovation enables organizations to strategically position themselves for competitive advantage and sustainable growth within the dynamic field of supply chain management.