This study considers in what way strategic distribution partnerships drive value chain innovation and outcomes in emerging market supply chains. Drawing on Resource-Based View, Value Chain Theory, Strategic Alliance Theory, and Institutional Theory, we test a moderated mediation framework using data from 562 stakeholders in Nigeria’s lubricant oil industry. Structural Equation Modelling reveals that collaborative alliances considerably enhance value chain innovation (β = 0.63, p < 0.001), which in turn improves operational performance (β = 0.57, p < 0.001). Value chain innovation mediates the partnership-performance relationship (indirect effect = 0.36, p = 0.004), while institutional conditions moderate partnership-innovation outcomes (β = 0.21, p = 0.018). Partnerships function as dynamic capability enablers, with innovation serving as the main mechanism for performance gains. However, institutional context significantly conditions these relationships, stressing the importance of context-sensitive strategy in emerging economies. The study contributes a validated system for understanding how indigenous firms leverage collaborative systems to overcome physical and institutional constraints.
Keywords: Emerging Markets, Institutional Theory, Supply chain management, moderated mediation, strategic distribution partnerships, value chain innovation
