Contemporary Logistics Innovation for Competitive Advantage

CONTEMPORARY LOGISTICS INNOVATION FOR COMPETITIVE ADVANTAGE: CONCEPT AND OPERATIONS

Sut Sakchutchawan1 Waynesburg University, USA

E-mail: ssakchut@waynesburg.edu

ABSTRACT

In global market, firms extend their customer bases through superior logistics. This paper examines the impact of multiple drivers of logistics innovation. A research model presents key dimensions of drivers of logistics innovation, logistics innovation process and the outcomes. To examine the research model, the following research methods are adopted: (1) e-research and a survey of literature examine the effective practices of logistics innovation; (2) key constructs are defined by their essential characteristics and propositions development articulate the relationships between key constructs. The study indicates that logistics firms will have successful operational performances and financial performances if innovation is implemented with proper knowledge management and technology, which in turn will enable firms to have effective communication networks. This innovative process will provide an excellent solution for customer demand Key Words: Customer Demand, Competition, IT Usage and Logistics Innovation. JELCodes: M11 and M16

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Sut Sakchutchawan , Ph.D., Associate Professor of Business Administration, Waynesburg University, 51 West College Street, Waynesburg, PA 15370, USA.

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I. INTRODUCTION

This paper proposes a concept of logistics innovation for global firms in today’s competitive environment. Logistic innovation is a pervasive tool for transforming organization in the turbulent environment for the purpose of performance improvement. Improved performance is a result of the quality or value stemming relationship between suppliers and customers. Many scholars agree that innovation in organizations helps firms create proper value by developing superior systems thereby gaining competitive advantage (Golicic and Mentzer, 2006). To date, there are very few proper logistics...