There remains in conclusive evidence about the impact of R&D investment on firm performance. This research the or izesan investment–performance consecution cast in a supply chain framework to fill in these gaps through resource or chest ration theory. We examine how process R&D investment as a key resource and enabler of knowledge generation impacts firm performance througha “chain of events” that includes internal knowledge application and supply chain operations process variance. Further, we investigate the moderating effect of a critical organizational structure dimension: centralized decision- making regarding supply chain operations. Findings support the contention that the chain is weakened when supply chain decision-making is centralized, thereby indicating that this dimension of organizational structure has profound effects on the efficacy of the process R&D investment decision.