A Study on the Impact of Innovation Capabilities on the Business Performance of International Logistics Companies
Kim, Jin Young
Department of Shipping Management
The Graduate School of
Korea Maritime and Ocean University
The purpose of this study is to identify the relationships between the innovation elements, tangible and intangible corporate resources, and the innovation capabilities and to investigate their impacts on business performance in the international logistics industry. To this end, a questionnaire survey is performed and data collected from practitioners of shipping companies, shipping agencies and freight forwarders in South Korea.
For this purpose, this study reviews previous literature on the resource-based theory and innovation capabilities. Then, a structural equation model is formulated with the independent variables of the innovation elements, the parameters of corporate resources and the dependent variables of business performance. This study performs tests of following five hypotheses:
5. Resources affect business performance positively.
Based on these hypotheses are tested using SPSS 21.0 and AMOS 21.0 and the results of estimation are:
1. Among the innovation elements, only competencies/attitude has a positive impact on innovation capabilities.
2. Among the innovation elements, only competencies/attitude has a positive impact on resources.
3. Resources have a positive impact on innovation capabilities.
4. Innovation capabilities have a positive impact on business performance.
5. Resources have an insignificant impact on business performance.
The results of this study suggest the significance of insiders’ intention in innovating organizational structure and process. Specifically, persistent and bottom-up innovation intention of insiders can boost corporate resources and the improved resources contribute to strengthening innovation capabilities, and ultimately business performance. In addition, the results imply the importance of clear-cut innovation strategies to guarantee commitment from employees.