Examining the impact of supply chain integration on firm innovation: a dual mediation and moderation study

Purpose This study aims to comprehensively analyze the influence of supply chain integration on firm innovation capabilities. It specifically investigates how resilience and dynamic capabilities act as mediating factors and evaluates the role of industry competitiveness as a moderator in this relationship. Design/methodology/approach The study employed a convenience sampling method to examine the proposed research model. Data were collected from 387 participants employed at 108 medium and large enterprises in Pakistan using SPSS and AMOS for analysis. Findings This research significantly advances our understanding of the relationship between supply chain integration and innovation capabilities. Results show that the moderating effect of industry competiveness is stronger for resilience capabilities. Resilience proved more critical than dynamic capability in sustaining innovation during disruptions, highlighting its importance in volatile environments. Research limitations/implications Future research should examine the role of technology, such as digitalization, data analytics and artificial intelligence, in enabling supply chain integration and enhancing firm innovation capability. Practical implications This study provides a valuable understanding and novel approach for directors of medium and large enterprises in developing countries to improve their innovation capabilities through SCI tactics by measuring the industry’s competitiveness. Originality/value This study advances knowledge by revealing how supply chain integration fuels innovation through dynamic and resilience capabilities. It also highlights industry competitiveness as a key moderating force. Together, these insights offer a novel framework linking integration, capabilities, and innovation.