Logistic Service Quality Innovation: Unlocking Competitive Advantage in Supply Chain Management

As a way to facilitate the export and import of commodities in both developed and developing nations, logistics and transportation are playing a bigger role in international trade relations. In order to provide comprehensive information regarding logistics performance, services, and capacity, this study uses a logistic case study of Cambodia. Additionally, using structural equation model (SEM) analysis (β = 0.219, p-value = 0.005), this study employs the strategy structure performance framework to examine the elements influencing a firm's resource based approach, logistics service innovation capabilities, and customer satisfaction. In order to investigate the proposed links, 396 wholesalers in SMEs with relevant experience utilizing logistic services in Cambodia participated in a self-administered survey using a standardized questionnaire between October 2024 and February 2025. While the other three research variables customer orientation, physical supply flexibility, demand management flexibility, logistic service quality, and process competence have a significant impact on logistic service innovation, the results showed that the key factors of demanded-oriented service, process capability, information process, and logistic service quality positively impacted a firm’s logistic service, its innovation capability, and customer satisfaction (β=0.118, p-value = 0.042) and by customer orientation (coefficient = 0.219). This indicates that in order to satisfy clients and promote growth in Cambodia, logistic services and innovation are crucial.