Enhancing innovation capability through relationship management and implications for performance

Abstract

Purpose – The purpose of this paper is to examine empirically the antecedents and consequences of innovativeness or innovation capability of logistics service providers (LSPs). In particular relationship orientation is examined as an antecedent to innovativeness that will in turn lead to higher levels of logistics service quality and firm performance. The outcomes aim at contributing towards understanding the main drivers of innovativeness and the outcomes of developing the capability to innovate.Design/methodology/approach – Data to empirically analyze the four research hypotheses on the relationships between relationship orientation, innovativeness, logistics service quality and firm performance are collected via a survey of a random sample of LSPs in Hong Kong and analyzed using structural equation modelling via LISREL 8.52. The LISREL diagnostics indicated good fit of the measurement and structural models, providing supporting evidence to the hypothesized causal relationships.Findings – The empirical ...