The Impact of Supply Chain Sustainability and Investment in Technology and Innovation on Firm Performance in Indonesia's Meat Processing Industry

Abstract

This study examines the interplay between Supply Chain Sustainability (SCS), Investment in Technology and Innovation (ITI), and firm performance in Indonesia's meat processing industry. Grounded in theories from operations and supply chain management, particularly those related to sustainable practices and innovation, this research explores how these strategies impact firm outcomes in a competitive and resource-constrained environment. The study further investigates the moderating roles of Entrepreneurial Bricolage (EB) and Competitive Intensity (CI) on these relationships. Using data from 141 meat processing firms in Indonesia, the analysis reveals that ITI significantly enhances firm performance, especially when firms engage in high levels of Entrepreneurial Bricolage. However, the combination of high SCS and ITI does not lead to high performance, indicating possible conflicts when these strategies are not integrated efficiently. Further, the study finds that Competitive Intensity not only enhances the effects of ITI significantly but also reduces the effects of SCS on performance. The results contribute to the broader literature on sustainable supply chain management by showing the complex dynamics between innovation, sustainability, and competitive pressures. This study provides practical implications for industry practitioners and policymakers, especially in developing economies, emphasizing the need for strategic alignment and resourceful innovation to gain competitive advantages.