Strategic and supply chain innovation in consortium buying: the roles of financial stability, coercive pressure, and AI adoption
TL;DR
The research offers fresh insights into procurement and innovation practices, particularly in high-risk or compliance-driven industries, and highlights the importance of aligning financial stability, regulatory responsiveness and innovation capabilities to improve procurement performance through consortium buying.
Abstract
This study aims to explore how financial stability and risk management, coercive institutional pressures and innovation capabilities influence strategic and supply chain innovation, and how these forms of innovation, in turn, impact the effectiveness of consortium buying. The research also examines whether artificial intelligence (AI) adoption moderates these relationships, with a particular focus on the United Arab Emirates (UAE) context. A cross-sectional survey design was employed, with data collected from 301 professionals across the UAE, Middle East, Asia and Europe. Partial least squares structural equation modeling was used to analyze the data and test the hypothesized relationships. The findings indicate that financial and risk, coercive pressures and resource significantly both strategic innovation and supply chain innovation. Supply chain innovation is significant mediating on consortium buying effectiveness, while strategic innovation is not significant. In turn, these innovation types positively influence consortium buying. However, the moderating role of AI adoption between innovation and consortium buying is not significant. The generalizability of the findings is limited to the geographic regions studied (UAE, Middle East, Asia and Europe), and the results may not fully apply to unregulated sectors. In addition, the cross-sectional design limits the ability to draw causal conclusions. The study highlights the importance of aligning financial stability, regulatory responsiveness and innovation capabilities to improve procurement performance through consortium buying. Practitioners are advised to invest in innovation competencies while remaining responsive to institutional pressures and evolving technologies. This study contributes to the literature by integrating strategic, institutional and technological perspectives to explain consortium buying dynamics in regulated environments. By positioning AI adoption within a moderated mediation framework, the research offers fresh insights into procurement and innovation practices, particularly in high-risk or compliance-driven industries.