THE INFLUENCE OF RESOURCES DIMENSIONS AND INNOVATION SOLUTION ON VALUE CREATION: A CASE STUDY OF HALAL LOGISTICS SERVICE IN THAILAND

Abstract

This study examines the influence of the relationship between resources dimensions and the value creation of logistics service providers (LSPs), in the economic crisis caused by the coronavirus disease 2019 (COVID-19). It also explores the mediating role of innovation solutions in halal logistics in the relationship between resources dimensions and value creation. Halal logistics play an important role in Muslim countries, and there has been a growing demand for halal products from non-Muslims. Despite its importance, there is limited knowledge of halal logistics problems in Thailand among the LSPs. To understand these issues, the study uses a questionnaire to collect data from 200 Thai LSPs selected through purposive sampling based on their logistics experience in halal, agricultural, or food products. We test the hypotheses using structural equation modeling. The results show a direct relationship between resources dimensions and the value creation of LSPs. The resource dimension is indirectly related to value creation through innovation solutions that mean it acts as a partial mediator in the relationship between resources dimensions and value creation. This study has important implications for LSPs in Thailand in that it demonstrates that they can promote innovation through resources utilization and thereby enhance financial and business performance.