Alignment of Logistics Flexibility and Logistics Innovation with New Product Development: An Innovation Model

Abstract

The research aims to investigate the association between logistics flexibility, logistics innovation and new product development while identifying the role of manufacturing capabilities as a mediator and environmentally sustainable innovation as moderator in assuring the improvement and enhancement in development of new products. A survey method has been used through the questionnaire in order to check the relationship between defined variables. Verily, it has been found that very few studies have linked logistics with new product development while the role of manufacturing capabilities has also not been explored yet. But this particular research study is connecting logistics in terms of flexibility and innovation. This research also probes the role of environmentally sustainable innovation in strengthening the association between manufacturing capabilities and new product development. Resource-based view and diffusion of innovation theory has been adopted in order to examine how logistics flexibility, and logistics innovation influences new product development while identifying the strengthening role of environmentally sustainable innovation. This research collected data from manufacturing organizations registered with the Securities and Exchange Commission of Pakistan. Moreover, it employs structural equation modeling to inspect the proposed hypotheses between constructs. Hypothesized relationships between constructs found to be significant and provide strength to the arguments. Logistics flexibility and logistics innovation positively influence new product development. Meanwhile manufacturing capabilities found to be mediating the relationship between logistics flexibility and new product development. Besides, this research testifies that environmentally sustainable innovation strengthens the relationship between manufacturing capabilities and new product development. This study theoretically contributes in the literature as a tested framework and connecting constructs i.e. logistics flexibility, logistics innovation, and new product development while opening up new avenues of research in this context. Moreover, it makes contribution by elucidating role of manufacturing capabilities and environmentally sustainable innovation which makes it easy for managers to make better and informed decisions regarding adoption of enhanced manufacturing equipment and allowing for necessary innovations to improve new product development. When considering the broader aspect of this research study, new products will contribute in gaining competitive advantage for organizations and in growth of economy as well because failure rate will be comparatively low which will aid in profitability of the organizations.