Realizing the <scp>NPD</scp> Benefits of the Firm Innovation Strategy: The Role of Supply Management and Supply Chain Transformational Leadership

ABSTRACT Firm innovation strategy (FIS) is crucial for new product development (NPD) performance. Few studies have revealed how the FIS that recognizes the importance of supply chain (SC) resources can improve NPD performance through SC management. This study emphasizes the mediating role of supply management, including innovativeness in supply management and firm‐supplier relationship. We argue that supply chain transformational leadership (SCTL) moderates the relationship between FIS and supply management. Using data from 232 Chinese manufacturing firms and applying structural equation modeling and regression analysis, we tested the hypotheses. The results show that innovativeness in supply management and firm‐supplier relationship mediate the relationship between the FIS and NPD performance. SCTL positively moderates the influence of FIS on supply management. These findings contributes to NPD outcomes. This study offers theoretical and empirical insights into SC management.