This paper examines the impact of external factors on global logistics firms. A research model is presented for
implementation in order to maintain competitive advantage. The model identifies key dimensions of drivers of
logistics innovation. Process of innovation and the outcomes are also discussed accordingly. This paper employs
e-research and a survey of literature as research methodology. Key constructs are defined by their essential
characteristics. Proposition development articulates the relationships between key constructs. Managerial implications
and solutions are discussed in order to respond to the concern of manager of improving their logistics capacities and
performance of firms properly.