Dynamic network innovation in emerging markets: From supply chain to demand chain

In this article, we aim to examine dynamic network innovation in emerging markets. We present a research model of demand and supply chain integration system (DSCIS) which responds to customer´s needs through the integrated information flows. DSCIS synchronizes the key processes in terms of frontend development, product planning, product design, procurement, manufacturing, sales and marketing, maintenance activities based on customer needs as process routines. We further explore the following research questions: (1) what SCM practices do firms consider for emerging market? (2) In the context of emerging market, how are these SCM practices implemented? This paper discusses innovative practices of electronic firms and auto-manufacturers that operate in China. What is noted in this study is that those firms that implement the deeper level of localization-initiated innovation bring amazing business successes. It is imperative for any global firms to (1) understand the rapidly changing market reality (2) develop partnership with the local governments for achieving effective market penetration. The scope of outsourcing is extended to the local firms that are strategically aligned to assume specific aspects of global supply chain management challenges. In brief, integration of both supply and demand chain is crucial for emerging market markets.