The study aims to explore supply chain innovation in retail trading of Small and Medium Enterprises (SMEs) in different regions of Abu Dhabi by considering the contribution of supply chain integration, supply chain orientation, and competition capability, along with the mediating role of intelligent information systems. Online questionnaires were used to collect the relevant information from managerial employees at target firms. A total of 357 responses were considered suitable for the purpose of the study. All the constructs were internally and externally estimated to be reliable and valid based on factor loading values, Cronbach’s alpha, composite reliability, average variance extracted, and discriminant validity. Supply chain integration, orientation, and competition capability were considered as the key contributors to supply chain innovation. However, in the case of supply chain orientation towards intelligent information systems and of intelligent information systems towards supply chain innovation, the association was weak. Intelligent information systems had a weak relationship with competition capability, supply chain integration, orientation, and innovation. The results have real-world implications for management and policymakers of retail trade SMEs in Abu Dhabi. Using the results and conclusions, upper management can shape corporate policy to improve supply chain integration, supply chain orientation, and competition capability, resulting in supply chain innovation in retail trading SMEs.