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Integration, Resilience, and Innovation Capability Enhance LSPs’ Operational Performance

Author

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  • Qining Deng

    (Operations Management, Universiti Sains Malaysia, Minden 11800, Malaysia)

  • K. Noorliza

    (Operations Management, Universiti Sains Malaysia, Minden 11800, Malaysia)

Abstract

In the context of the development of industry 4.0 embedded in various industries, organizations face stiffening competition from external dynamically changing and unpredictable environments. To remain competitive and sustainable in this era, organizations need resilience and innovation capability. Therefore, this paper aims to investigate the association between external integration, resilience, innovation capability, and logistics service providers (LSPs) operational performance. Moreover, this research investigates the mediating effects of sustainable logistics and innovation capability between external integration and LSPs operational performance. Based on Resource orchestration theory, a framework has been drawn. The survey of 273 Chinese LSPs was examined through the PLS-SEM technique. The findings indicate that external integration has a positive relationship with logistics resilience and innovation capability, which have a positive impact on LSPs’ operational performance. The results also show that innovation capability positively mediates the relationship between external integration and operational performance. Unexpectedly, logistics resilience has not played a mediating role between external integration and operational performance. This study makes contributions to the construction of a mechanism of LSP performance improvement by integrating the external environment, resilience, and innovation. The paper also advanced the theory of resource orchestration theory by adding these two mediators of logistics resilience and innovation capability

Suggested Citation

  • Qining Deng & K. Noorliza, 2023. "Integration, Resilience, and Innovation Capability Enhance LSPs’ Operational Performance," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1019-:d:1026398
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    2. Pietro Evangelista & Aino Kianto & Henri Hussinki & Mika Vanhala & Anna-Maija Nisula, 2023. "Knowledge-Based Human Resource Management, Logistics Capability, and Organizational Performance in Small Finnish Logistics Service Providers," Logistics, MDPI, vol. 7(1), pages 1-21, February.

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