Organizing new service development is an important topic for decision makers in service firms, since continuous innovation is expected to pay off. Although the literature on organizing new service development has grown rapidly over the last decade, the numerous publications are highly fragmented, each concentrating on a small piece of the complex innovation puzzle. This paper classifies current literature on organizing new service development (NSD) into two evolutionary stages: managing key activities in the NSD process, and creating a climate for continuous innovation. For both stages its consequences for the initiation and implementation of new services are discussed. The paper ends with limitations and suggestions for future research.
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