(revenue, cost savings, etc.)However, supply chain innovation is a must therefore for the following reasons: (a) for gaining competitive edge in the market (b) for managing the different types of risks prevailing in the supply chain (Wagner, Bode 2006) and (c) for meeting proactively the different forms of uncer tainties in the adjoining environment. But for developing innovative supply chains, firms must ascertain its various logistics capabilities and align them in an appropriate manner. As logistics are an essential part of supply chain (Mentzer et al. 2004 Abstract. Supply chains need to innovate constantly for maintaining their position in the marketplace and also to fight un certainties. Hence firms are focusing on strategies for developing supply chain innovation. The current investigation adds to this emerging regime through investigating the influence of logistics capabilities viz. demand management capability, supply management capability, information management capability and coordination capability on supply chain innovation through logistics integration. Further, supply chain innovation helps a firm to sustain its position in the market place through generation and launching of new products and services. Accordingly, the influence of supply chain innovation on firm performance is also investigated. Data is collected from logistics, purchasing and supply chain professionals working in different industries in India.The findings based on 169 responses largely support our proposed relationships.