Exploring the effects of digital market adaptability on supply chain innovation

Background: Theoretical advancement calls for exploring the drivers for supply chain (SC) innovation. Aim: This study draws on the dynamic capability view, complex adaptive system and contingency theories to explore the effect of market intelligence, internal and supplier adaptability and digital orientation on SC innovation. Furthermore, the study examines the mediating role of internal and supplier adaptability and the moderating role of digital orientation on the association between the driving factors and SC innovation. Setting: Survey data were collected from 224 hotel managers in the Tanzanian tourism industry. Method: The structural equation modelling method was used to analyse data using smart-partial least squares-4 and statistical package for the social sciences softwares. Results: Our findings reveal that market intelligence, internal adaptability and supplier adaptability are significant predictors of SC innovation in the Tanzanian hospitality context. Again, both internal and supplier adaptability partially mediate the relationship between market intelligence and SC innovation. In addition, except for market intelligence, digital orientation amplifies the positive relationship between internal and supplier adaptability and SC innovation. Conclusion: Market intelligence, internal and supplier adaptability and digital orientation are critical for developing SC innovation. Contribution: This study advances SC innovation theory within the hospitality sector by explicating how market intelligence is transformed into innovation through the conjoint and contingent capabilities of internal (intra-firm) and supplier (inter-firm) adaptability. It further establishes digital orientation as the pivotal moderator that conditions these adaptive mechanisms.