Promoting synergistic innovation in logistics service outsourcing

Purpose The purpose of this study is to explore what is synergistic innovation in the logistics service outsourcing context and how this strategy can potentially benefit an organization by improving performance outcomes. Design/methodology/approach A total of 21 in-depth interviews were conducted to conceptualize the construct of synergistic innovation. In addition, a theory-based model is tested using data collected from 282 Chinese manufacturing firms that are currently engaged in logistics service outsourcing. Findings The results from the in-depth interviews reveal that synergistic innovation goes beyond just interactions on innovation but requires both parties to achieve synergies that otherwise cannot be achieved by individual party alone. In addition, the empirical analysis suggests that synergistic innovation can help firms improve both logistics service performance and market performance. This process is dynamic as knowledge integration capability influences the outcomes of synergistic innovation. Originality/value This study is among the first to conceptualize synergistic innovation. It also offers a practical scale that helps future studies effectively measure this construct. Moreover, the results of this study provide compelling insights into how managers can use logistics service outsourcing as an important source for improving innovation outcomes.