Performance measures to sustain continuous innovation : empirical studies of logistics functions within firms

This paper discusses results from a study of Continuous Innovation within the logistics industry in Australia and Singapore. Using previous logistics and service industry innovation studies, an adapted version of the CIMA model for Continuous Innovation has been developed and refined through case study research. The theoretical model and subsequent empirical research has identified Contingencies, Behaviours, Competencies and Drivers relevant to improving innovation processes within firms. Upon establishing these variables, the research also examined performance measures implemented by the firms to review and support continuous innovation efforts. Innovative firms measure outcomes of strategies and action plans to ensure that systems and processes allow for continuing improvement. Performance measurement identifies potential areas or problem areas that need more attention. In logistics firms, this will often include pinpointing areas or functions facing (or about to face) problems concerning backlogs, slipping deadlines, high turnover or customer/supplier complaints. On the other hand, effective performance measurement and analysis is also significant in evaluating evidence of progress, timely data collection, cost savings, service levels, customer satisfaction and reductions in waiting or processing times. This paper examines the Continuous Innovation strategies and performance measures adopted by Australian and Singaporean logistics firms in managing innovation using ten in-depth, exploratory case studies. Timely and effective measurement of outcomes is imperative for firms wishing to examine the effectiveness of their innovative efforts, which in turn insures that they retain their competitive advantage in the marketplace.