Abstract
Due to changes in needs of customers, business environment, and technological developments, the scope of Freight Forwarder services has expanded with the increased complexity. Expanded service scop of freight forwarder plays key role in increasing customer satisfaction and loyalty by providing comprehensive logistics services from global supply chain management, value-added services, information and consulting. However, domestic companies are meeting with cutthroat competition for the price rather than improving the quality of services. Consequentially, competitiveness in the international arena is weakening by only focusing on a price war. Domestic logistics companies should break away from this hyper competition on price. Instead, concentrating on creating customer value to secure a competitive edge beyond the traditional role of transportation in the new economic market, and innovation would be essential. Regardless of high necessity for in-depth research on this, there are not many innovation studies on the domestic Freight Forwarder yet. In this study, Innovation type had been sorted into service and management. This division is focusing on the nature of logistics industry with seeing uncertainty of technology, the characteristics of CEOs, information system of the logistics, and personal traits as the factors which influencing to innovation in freight forwarding. Logistics performance was classified into efficiency and effectiveness, and corporate performance was measured as financial performance. Research result was proved that innovation factors have positive effects on both service and management revolutionization. Also on the efficiency and effectiveness of logistics. In addition, it was demonstrated that efficiency and effectiveness, which are logistics performance, have a positive effect on a company's financial performance.
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