eng Science and Education Publishing Journal of Business and Management Sciences 2333-4533 2020-06-19 8 3 77 84 10.12691/jbms-8-3-1 JBMS2020831 article Cheng Mei Tung justineatfc@gmail.com 1 Shih-Kuan Chiu 1 Wen-Hsiang Yu 2 Department of International Business, Feng Chia University, Taichung, Taiwan PhD. Program of Business, College of Business, Feng Chia University, Taichung, Taiwan Business model innovation brings new value and revenue to enterprises. For industries with competitive advantages, strengthening the value chain is an important matter. This study explores the workings of the logistics service providers in the bicycle industry in Taiwan who provide an innovative and integrated value chain to customers with new value propositions to create a win-win situation. The study found that logistics company understand the needs and problems of customers. They integrate upstream and downstream customers in the value chain and provide processing services for bicycle manufacturers. The logistics company play an extended machining service provider of upstream suppliers. The innovative business model shortens the lead time of key components from suppliers to bicycle manufacturers. Innovation has changed the old value chain model and has improved the service capabilities of the logistics company. http://pubs.sciepub.com/jbms/8/3/1/jbms-8-3-1.pdf innovation value proposition global value chain logistics company