This compilation thesis consists of a cover and five appended articles. The research purpose of this thesis is to investigate the third party logistics phenomena from the logistics firm’s perspective with a focus on logistics innovation and network development. The thesis applies a qualitative research method and employs multiple case studies. Resource-based view, industrial network approach and strategy-as-practice perspective have been applied and combined to analyze the empirical findings.

It is found that logistics firms focus on customers’ requirements and they provide differentiated services accordingly. Based on the type of customers and the region served, each logistics firm innovates in a different way. The logistics innovation process is complicated and it includes both top-down and bottom-up process. Both intra-organizational interactions and inter-organizational interactions are critical for logistics firms to generate logistics innovation. Besides, the interaction capabilities are crucial for logistics firms to innovate. The development of interaction capabilities enables logistics firms to proactively identify customer needs and to translate customer requirements into new service offerings. The development of interaction capabilities also guides logistics firms to innovate in the right direction and helps them to overcome barriers. Further, a theoretical model is developed to illustrate that logistics firms have clear differences in capabilities and network focus. These firms follow different dominating logics of value creation, developing their service networks in various ways.

The thesis addresses two critical issues, logistics innovation and network development. Theoretically, it contributes to the third party logistics literature in general and to the logistics innovation research in particular as well as the network development of logistics firms. Adopting several theoretical frameworks, the thesis takes a closer look at the logistics innovation process in logistics firms. Empirically, the thesis covers logistics firms both in Sweden and China, turning it into an international investigation of the how and why of logistics innovation.