EMPIRICAL STUDY ON LOGISTICS SERVICE FLEXIBILITY MEDIATED BY INNOVATION ON LOGISTICS PERFOMANCE DURING COVID-19 IN MALAYSIA

Abstract

Advancements in information technology and reduced trade barriers have increased the demand for logistics services, while deregulation and liberalization have intensified the challenges for logistics service provider (LSP) in maintaining high performance. The unprecedented COVID-19 has exacerbate the complications in logistics industry and heightened the challenge for logistics service providers (LSPs) to achieve performance. Therefore, this study is to determine the impact of logistics flexibility capability in achieving performance and to determine the role of innovation as mediator to connect the model framework. This research employed 127 LSPs in Malaysia through stratified random sampling. The study utilized Structural Equation Modelling (SEM) with Partial Least Squares (PLS) estimation to investigate and evaluate the hypotheses proposed in this study. The findings found that LFC failed to significantly relate with logistics performance and innovation also failed to mediate the relationship between LFC and logistics performance. This research contributes to the current knowledge base, especially within the framework of the COVID-19 pandemic, accentuating the necessity for additional scholarly investigation to expand our comprehension of this occurrence.