The Interplay Between Innovation Capacity, Supply Chain Agility, And Market Leadership In Emerging Economies

Abstract

Firms in emerging economies often struggle to stay competitive in fast-changing markets. While innovation and supply chain agility are widely seen as drivers of market leadership, we still do not fully understand how these forces work together in contexts like Africa. Guided by the Resource-Based View (RBV) and the Dynamic Capabilities Theory (DCT), our study set out to explore the links between innovation capacity, supply chain agility, and market leadership. Data were collected through surveys from firms in Nigeria, Kenya, and Ghana, and analysed using structural equation modeling. Our results showed that innovation directly supports market leadership, but surprisingly, supply chain agility did not significantly predict leadership. Also, innovation did not strengthen leadership through agility, suggesting that the assumed pathways may not hold in emerging markets. These findings imply that innovation is indeed a valuable resource (RBV), but its impact depends on how well firms turn it into dynamic capabilities (DCT). Our study was limited by its cross-sectional design and focus on three countries. Future research should use longitudinal data and explore other regions. Overall, our study highlights that innovation matters, but without strong systems and dedicated strategic direction, its benefits may not fully translate into agility and competitiveness.