The need to be proactive to customers demand and the intensifying challenges from globalization and the rising cost of consumable goods necessitated the researchers desire to explores, strategic impacts of supply chain innovation on firms’ performance. Many firms believed that supply chain innovation is a means of competitive advantage. Conversely, one firm’s supply chain innovation is another company’s process improvement. In today’s competitive business environment, misunderstanding a new idea may result in wasting resources on an innovation that is not yet materialized. Lack of clarity is an issue for academic debate. The objective of this article therefore was to examine strategic impacts of supply chain innovation on firms’ performance. The researchers adopted theoretical framework in investigating the nature and concepts of supply chain innovation in this research. Data were sourced from management journals, internet and periodical. This gives a clear understanding of earlier work in the area of exploration thereby providing foundation for the researchable predicament at stake. Findings reveal that supply chain innovation involves an integrative system of customers, suppliers, manufacturers, information technology and finance through physical and human resources for enhance performance. Supply chains innovation requires array of relationships and numerous paths through which products and information travel. To gain utmost advantage from supply chain innovation, a firm must energetically draw upon its available internal capabilities and the external resources of its supply chain network to fulfill customer requirements.