Abstract
Logistics service providers (LSPs) are a significant individual in supply chain management services. The escalating competitive pressures are placing considerable strain on LSP particularly those operating at the local level, as competition arises from both domestic and international. It becomes crucial for LSP to enhance their performance by aiming for growth and long-term sustainability in this industry. Thence, this study explores the direct influence of logistics service capacity on LSP performance, as well as the mediation influence of innovation linking logistics service capability to logistics performance. This study involved the participation of 127 LSP through survey methodology in Malaysia. The study employed Structural Equation Modelling (SEM) using Partial Least Squares (PLS) estimation to examine and test the hypotheses posited in this study. The results provide valuable understandings for LSPs to enhance their logistics services in alignment with highest performance and customer satisfaction. The findings also show that innovation failed to connect the model of logistics performance The findings are necessary to establish a reliable policy in attaining better logistics performance especially during unprecedented situation. This study extends the degree of knowledge regarding logistical performance during the COVID-19 epidemic and to the innovation as mediation to attain performance in logistics field.
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