Logistics Innovation Based on Linkage Development with Manufacturing Industry: A Conceptual Framework

Transformed from the business concept of transportation to that of serving the entire logistical needs of customers, logistics industries play an important role on manufacturing industry. However, as neglected in the past, the development of logistics industries lagged behind that of manufacturing industry in China and some logistics barriers to international operations exist. To overcome these barriers, logistics service providers have to make innovation. Only by improving their innovation capability could the logistics enterprises gain the competitive advantages. Through an extensive literature review, this paper examines the drivers for innovation of logistics industries and also identifies the contributions of environmental factors to innovation. After that, the paper proposes a conceptual frame of innovation of logistics industries, which provides a more thorough understanding of innovation of logistics industries based on linkage development with manufacturing industry in China.