Logistics Innovation: A Service-Dominant Logic-Based Conceptual Framework

Logistics Innovation: A Service-Dominant Logic-Based Conceptual Framework

Omur Yasar Saatcıoglu (Dokuz Eylul University, Turkey), Gul Denktas-Sakar (Dokuz Eylul University, Turkey) and Cimen Karatas-Cetın (Dokuz Eylul University, Turkey)
DOI: 10.4018/978-1-4666-6220-9.ch001


Customers demand new services due to a dynamic and complex business environment. Innovation is a response to these challenges in various industries. Logistics service providers are under great pressure to be innovative due to their changing business environment and customer demands. Logistics innovation can be considered service innovations triggered by technological innovations. Service innovation should be examined with a service-dominant logic perspective by considering properties of services. Service-dominant logic as an evolving view in marketing highlights the importance of value co-creation, relationships, processes, and operant resources in the service exchanges of the organizations. In this chapter, important determinants related to logistics innovation are derived by a comprehensive literature review. Furthermore, a conceptual model of logistics innovation within a service-dominant logic perspective is established. This study is novel in that it focuses on the unexplored research of logistics innovation from the perspective of service-dominant logic by taking a holistic approach integrating technology, knowledge, and relationship orientation concepts with value co-creation.
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Innovation is a required process for adapting dynamic business environments and deriving value to customers. Innovation has great effect on performance regardless of industry and organization type. Though there are four innovation types, product innovations related studies are mostly common in literature (Grawe, Chen, & Daugherty, 2009). Due to the dynamics of the knowledge economy and society, the importance of delivering innovative services increases due to an accerelated pace of technical and scientific advancement. The key component of the knowledge economy is a greater reliance on intellectual capabilities than on physical inputs. Due to the increased importance of services and service innovation, it is necessary to conduct research on service innovation. Product and service innovations have different characteristics; therefore, service innovations must be considered with respect to service properties. Service-dominant logic should be considered in service innovation related studies which emphasizes co-creation of value, learning, and value creation network.

The logistics industry and its service providers are also affected by changes in the global marketplace. Hence, innovation is also a key process for logistics service providers. However, there is still a high failure in logistics innovation in practice (Buse & Wallenburg, 2011) even though research on logistics innovation has increased since 2005. Accordingly, innovation related research considering the unique properties of logistics service will contribute both to logistics practices and the extant academic literature. Therefore, the goal of the study is to explore the main mechanisms which enable logistics service providers to deliver value with their innovations via feedback from a service-dominant logistics perspective by a conceptual model and developing propositions.

The study is structured in three main parts: literature review, conceptual framework, and conclusion. After a brief introduction on innovation in general and logistics innovation in particular, the relationship between determinants of logistics innovation within the context of detailed literature review is discussed. Following the literature review, a conceptual model is developed showing the relations between determinants and outcomes of logistics innovation process. Finally, the study is concluded with implications for theory and practice as well as mention of the limitations of the study.

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