Navigating the crossroads: supply chain adaptability, internal coopetition and innovation in chain restaurants’ cross-regional expansion

Purpose Drawing on dynamic capability theory (DCT) and the attention-based view (ABV), this study investigates how supply chain adaptability influences innovation in chain restaurants’ cross-regional expansion, with a focus on the mediating role of internal coopetition (cooperation and competition) among teams. It aims to understand the mechanisms linking supply chain adjustments, team dynamics and innovation outcomes in diverse market contexts. Design/methodology/approach A mixed-methods approach was employed. First, qualitative data were collected through semi-structured interviews with 15 chain restaurant managers, which were analyzed using thematic analysis to identify key themes. Next, quantitative data were gathered from a three-wave survey of 407 respondents across multiple restaurant types. To test the hypotheses, the data were analyzed using partial least squares structural equation modeling and combined importance-performance map analysis (cIPMA). Findings Four qualitative themes emerged, including adaptation's role in triggering innovation, team collaboration, team conflict and supply chain duality (bright and dark sides). Supply chain adaptability–comprising sensing, seizing and standardization–was found to boost product and service innovation. Internal coopetition mediates these relationships. The cIPMA reveals that sensing is the primary bottleneck for both product and service innovation (followed by standardization), while coopetition is necessary only for product innovation–thus an approach that prioritizes sensing and standardization will substantially boost restaurant innovation performance. Meanwhile, an approach that emphasizes coopetition would be more beneficial to achieve breakthrough product innovation. Practical implications The findings suggest that chain restaurant managers may enhance their restaurant's cross-regional performance by aligning supply chain adaptability with local market demands and by fostering team collaboration while managing competitive tensions. Blending standardized processes with localized adjustments and leveraging digital platforms for region-specific marketing may also boost innovation and performance. Originality/value This study advances the literature by combining DCT and ABV to emphasize standardization's dual role as a stabilizing factor and an innovation driver. It proposes a new composite attention allocation approach to coopetition and applies that approach to internal team dynamics, filling a critical gap in supply chain research. The study's mixed-methods design provides robust insights.