Chain or shackles: Understanding what drives supply-chain performance

We relate an array of factors that embody current practice and thinking in supply-chain management with supply-chain performance. We measured supply-c hain performance using a set of variables that capture the impact of supply -chain management on systemwide revenues and costs. We classified supply ch ains based on the products they support as inherently functional or inheren tly innovative. They differ in practices used and thinking. High performers among innovative-product supply chains use practices that enhance revenues more than high performers among functional product supply chains. They are more likely to engage in supply-chain management to enhance revenues. Fina lly, we found that the practices and reasons for engaging in supply-chain m anagement that distinguish high performers from low performers are differen t for functional and innovative-product supply chains.