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Chinese Journal of Management Science ›› 2025, Vol. 33 ›› Issue (1): 297-310.doi: 10.16381/j.cnki.issn1003-207x.2024.1097

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Supply Chain Management Based on Product Innovation: Literature Review and Prospects

Yongbo Xiao1(), Cui Zhao2, Qungeng Lin1, Jihong Zhang3   

  1. 1.School of Economics & Management,Tsinghua University,Beijing 100084,China
    2.School of Economics and Management,Beijing Jiaotong University,Beijing 100044,China
    3.International Business School,Beijing Foreign Studies University,Beijing 100089,China
  • Received:2024-06-30 Revised:2024-12-05 Online:2025-01-25 Published:2025-02-14
  • Contact: Yongbo Xiao E-mail:xiaoyb@sem.tsinghua.edu.cn

Abstract:

With the rapid development of digital and intelligent technologies, the digitalization and smart transformation of the manufacturing industry are accelerating, and product innovation empowered by these technologies has become a core driver of real economic growth. By leveraging technologies such as AI, big data, and IoT, companies can quickly respond to market demands, optimize product designs, and improve production efficiency, thereby enhancing innovation capabilities and competitiveness. However, modern product innovation is no longer solely driven by technological advancements; companies are increasingly integrating Environmental, Social, and Governance (ESG) standards into their product innovation and supply chain management strategies. Supported by digital technologies, businesses can not only improve production efficiency but also implement green supply chain practices, reduce carbon emissions, and ensure the environmental sustainability of products throughout their lifecycle. Meanwhile, intelligent technologies enable companies to enhance supply chain transparency, focus on social responsibility and fair trade, and further strengthen brand value and societal trust. This approach, which combines technological innovation with ESG standards, achieves both economic benefits and sustainable development, driving long-term growth for companies.In today’s highly competitive and uncertain market environment, the focus of product innovation competition in manufacturing enterprises is gradually shifting towards supply chain-based competition. Under traditional business models, manufacturers often conduct product R&D and production independently, resulting in product innovations that may not fully align with consumer demands, leading to greater market risks. The development of digital and intelligent technologies has enabled manufacturing companies to create innovation models and management strategies based on the supply chain. For example, in product crowdfunding, consumers not only participate in pre-ordering but also in product design and decision-making, fostering greater interaction. This process enhances product quality and innovation, while strengthening brand loyalty and word-of-mouth promotion, ultimately driving long-term profits. At the same time, the shift in digital technologies and business philosophies has given rise to the new supply chain model of the ecological chain. The ecological chain integrates upstream suppliers, online and offline platforms, and downstream sales networks through core enterprises, forming a comprehensive system. Compared with traditional supply chains, the competitive and collaborative relationships in an ecological chain are more complex, bringing about new business models and supply chain structures, while also presenting new challenges in product innovation management, particularly in resource sharing, risk control, and innovation collaboration. In this context, companies must not only drive innovation but also ensure sustainable development based on ESG standards, enhancing brand value and social responsibility to stand out in the global competition. This transformation has not only created new business models and supply chain structures but has also brought about numerous new management challenges, including the mining of information and knowledge for product innovation, supply chain management based on product innovation, collaborative product innovation among supply chain members, and the design of supply chain mechanisms that are rooted in product innovation.These challenges provide scholars in fields such as information systems, information management, operations, and supply chain management with vast research opportunities. They encompass product innovation within horizontal supply chain enterprises, vertical product innovation between upstream and downstream supply chain companies, product innovation among external supply chain members, and the coordination mechanisms of supply chains based on product innovation. Based on a thorough analysis of the core challenges in managing product innovation in supply chains during the digital and intelligent era, relevant research findings and looks ahead to future research directions are systematically reviewed. In particular, it explores how to deeply integrate ESG factors with product innovation to promote the synergistic development of sustainable practices and product innovation. Specifically, five key research directions are identified that urgently need exploration in the field: information mining and knowledge discovery for product innovation empowered by digital and intelligent technologies, enterprise operations management based on product innovation, horizontal competition in product innovation among supply chain enterprises, vertical competition in product innovation between upstream and downstream supply chain companies, and the design of supply chain mechanisms based on product innovation. These five dimensions encompass various aspects, ranging from information and technology-driven innovation discovery to the design of collaborative mechanisms both within and outside the supply chain, involving not only technological applications but also in-depth discussions at the management and strategic levels. Addressing these challenges requires the application of methods such as data mining, machine learning, empirical analysis, modeling optimization, and mechanism design in specific supply chain product innovation practices. Integrating these five dimensions with data analysis, ESG standards, and the ecological chain concept will help drive innovation within supply chains, promote sustainable development, enhance coordination among supply chain partners, and provide theoretical support for more resilient and socially responsible business models.

Key words: product innovation, digitalization and intelligence, ESG, operations and supply chain management, collaboration and competition

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