Innovation-Based Logistics Performance Model: A Conceptual Framework for Logistics Service Provider

Abstract

From the established literature reviewed, the resources and capabilities factors have gained tremendous attention in logistics firm performance studies in business research. Compared with the other study, this one should not only be viewed through the lens of logistics services, logistics flexibility, value-added services, and logistics service quality but should also be involved with innovation to enhance and improve the respective capabilities. It can be stated that logistics capabilities that have been implemented innovatively may result in better performance. The innovation variable in this model has been generated by a process of integrating the service capability measurement from a tremendous literature review of the previous studies. also extends the literature on logistics performance by integrating several disciplines and theories to develop a new concept of logistics performance. The concept is developed to assist logistics firms in responding holistically to today’s new challenges, represented by a dynamic and uncertain business market. It can be stated that logistics capabilities that have been implemented innovatively may result in better performance. Thus, the model would contribute to the logistics firm's strategy and management.