INNOVATIONAS AND SOLUTIONS IN BUSINESS LOGISTICS

Abstract

This paper explores how innovation affects business logistics performance by conceptualizing and empirically supporting a comprehensive model of technological, operational, organizational, and sustainable logistics innovations. The research design adopted was a quantitative research design with a structured survey conducted on logistics professionals and supply chain practitioners. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the data collected to determine the relationships between the proposed constructs. The findings reveal that all innovation dimensions significantly influence logistics innovation, with technological innovation (β = 0.41, p < 0.001) exerting the strongest effect, followed by operational innovation (β = 0.36, p < 0.001), sustainable logistics (β = 0.33, p < 0.001), and organizational innovation (β = 0.29, p = 0.002). Furthermore, logistics innovation significantly enhances business logistics performance (β = 0.58, p < 0.001). The model explains 64% of the variance in logistics innovation and 34% in business logistics performance, indicating substantial explanatory power. Overall, the findings support the significance of an integrated innovation approach to enhance the efficiency, reliability, and sustainability of logistics, and provide both theoretical and practical aspects of attaining competitive advantage.