During the past few decades, logistic industry has grown rapidly worldwide, however, the performance of Indonesian logistic industry is decreasing due to various supply chain issues. Logistic companies are suffering with low performance which has negative consequence on gross domestic product (GDP). To address this issue, the primary objective of the current study is to investigate the role of innovation in supply chain management. By using the cross-sectional research design, 300 questionnaires were distributed among the employees of logistic companies. All the questionnaires were distributed by using area cluster sampling. PLS-SEM was preferred to achieve the objectives of the current study. Findings of the study have revealed that collaboration with supplier, customers and external partners had significant positive relationship with radical and incremental innovation. Moreover, radical and incremental innovation maintained significant positive relationship with open-innovation performance. An increase in open-innovation increases the supply chain performance among Indonesian logistic companies. Therefore, logistic companies must focus on innovation to boost their performance. This study contributed in the body of literature by examining the important role of radical and incremental innovation in supply chain performance.