<p>Innovation is the most significant factor in improving the quality and efficiency of service processes demanded by the market. The direction of innovation in logistics management is to enhance courier service activities by providing technological development, knowledge, and relationships. Innovation plays an important role in this regard, providing quality services to companies and increasing their competitiveness. The research considers the unique application and development of innovation in logistics companies during unstable environmental conditions. The objective of this study is to examine the innovation in logistics services provided by courier company in Indonesia and how it affects the company's business performance. The hypothesized model was tested using a structural equation modeling approach to survey data from managers of 70 courier services in Indonesia. The research shows that logistics service innovation and dynamic logistics capabilities can predict improvements in courier business performance in a turbulent environment. The positive impact of dynamic courier capabilities on courier business performance is enhanced by the use of logistics service innovation, which has been found to be a mediator. The courier company's business activity processes can be improved by implementing logistics innovation, which has been proven to increase their effectiveness and competitiveness.</p>