Innovation in logistic services and the new business model: A conceptual framework

Service industries hold an increasingly dynamic and pivotal role in today's knowledge‐based economies. The logistics industry is a classic example of the birth and development of a vital new service‐based industry, transformed from the business concept of transportation to that of serving the entire logistical needs of customers. Quantum advances in science, technology, and communication in the new millennium have compelled firms to consider the potential of the so‐called new “resources” (technology, knowledge and relationship networks) that are essential if firms are to operate effectively within the emerging business model, and to utilise the opportunities to innovate and gain market leadership. Through an extensive literature review, this paper examines the factors that nurture innovation in logistics services, identifies the contributions of the new “resources” and, using industry examples, examines the application of these resources to logistics firms as they assume an extended role within the new business model.