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Customer firms and suppliers are valuable knowledge resources that can be used for achieving superior new service development (NSD) performance. This study aims to investigate how…
Abstract
Purpose
Customer firms and suppliers are valuable knowledge resources that can be used for achieving superior new service development (NSD) performance. This study aims to investigate how supply chain relationship quality (SCRQ) and knowledge sharing promote the success of NSD, and examines service modularity as an important contingency factor that enhances NSD performance in supply chains.
Design/methodology/approach
Based on service-dominant logic, this study builds a conceptual model to empirically explore the impacts of SCRQ and knowledge sharing on NSD performance, and highlights the moderating effect of service modularity by means of survey methodology of 295 Chinese service firms to test the research hypotheses.
Findings
Regression analysis results show that SCRQ has significant positive effects on knowledge sharing and NSD performance; knowledge sharing plays a partial intermediary role between SCRQ and NSD performance; and service modularity partially moderates the relationships between SCRQ, knowledge sharing and NSD performance.
Research limitations/implications
Generalizations here are limited to Chinese service firms. Service modularity in manufacturing firms experimenting with servitization has yet to be examined and provides a good avenue for future research.
Originality/value
This study contributes to service management literature by providing empirical understanding of how service modularity affects NSD performance in multiprovider contexts. Furthermore, this study offers novel insights on the impacts of inter-firm relationship quality and knowledge sharing in modular collaborative innovation.
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Chris Storey and Matthew Hughes
This research attempts to understand the operant resources required for new service development (NSD). It aims to construct a more intricate understanding of how operant resources…
Abstract
Purpose
This research attempts to understand the operant resources required for new service development (NSD). It aims to construct a more intricate understanding of how operant resources interact to drive NSD. Specifically, it aims to look at the impact of culture, strategic orientation and NSD capability for number of new services, the success rate of new services and the resulting financial contribution by NSD to overall firm performance.
Design/methodology/approach
To investigate these relationships, data were collected from 105 leading UK‐based service firms via a key informant survey. Regression analysis was employed to test the model presented.
Findings
Analysis reveals that a different culture (entrepreneurial culture) is needed to drive the number of new services from that required for a higher success rate (learning culture). A NSD capability has an important role supporting both of these aspects of NSD performance. The quantity and quality of NSD go on to affect the financial contribution made by NSD. A firm's strategic orientation is also found to directly affect contribution. NSD performance is further enabled by the appropriate alignment of culture, capability and strategic orientation.
Research limitations/implications
The results demonstrate that existing research only partially explains NSD performance. The impact of culture, capability and strategic orientation is contingent on how performance is measured. Understanding how different operant resources interweave to deliver NSD will facilitate more informed decision making leading to the effective use of organizational resources.
Practical implications
The results show that there are different pathways to NSD performance depending on existing organizational conditions. Firms with an entrepreneurial culture should employ a Prospector orientation, whereas firms with a learning culture benefit from an Analyzer orientation. Defenders need to build on existing capabilities.
Originality/value
To date no study has assessed the relative effect of culture, strategic orientation and capability on NSD performance. The complex contingency model presented here offers a timely contribution to the theory base underpinning the development of operant resources for NSD.
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Aku Valtakoski, Javier Reynoso, Daniel Maranto, Bo Edvardsson and Egren Maravillo Cabrera
The purpose of this paper is to test how national culture may help to explain cross-country differences in new service development (NSD) by comparing the impact of NSD success…
Abstract
Purpose
The purpose of this paper is to test how national culture may help to explain cross-country differences in new service development (NSD) by comparing the impact of NSD success factors between Mexico and Sweden.
Design/methodology/approach
Eight hypotheses based on prior literature on NSD and national culture were tested using covariance-based structural equation modeling and survey data from 210 Mexican and 173 Swedish firms.
Findings
Launch proficiency and customer interaction had a positive impact on NSD performance with no difference between the two cultures. NSD process formalization did not have clear positive impact on NSD performance but had a statistically significantly stronger impact in the structured culture (Mexico). Team empowerment affected NSD performance positively, but the difference between cultures was non-significant.
Research limitations/implications
The impact of national culture depends on the type of NSD success factor. Some factors are unaffected by the cultural context, while factors congruent with the national culture enhance performance. Factors incongruent with national culture may even hurt NSD performance.
Practical implications
When choosing priorities in NSD improvement, managers need to consider the national culture environment.
Originality/value
Paper directly tests how national culture moderates NSD performance using primary data. Findings suggest that the effects of NSD success factors are contingent on congruence with national culture.
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Subhash C. Lonial, Mehves Tarim, Ekrem Tatoglu, Selim Zaim and Halil Zaim
The principal aim of this study is to determine the critical factors of market orientation (MO) and to measure its effect on new service development (NSD) and financial performance…
Abstract
Purpose
The principal aim of this study is to determine the critical factors of market orientation (MO) and to measure its effect on new service development (NSD) and financial performance of hospital industry in Turkey.
Design/methodology/approach
Drawing on a self‐administered questionnaire, the data were collected from a sample of privately‐held general hospitals within the city of Istanbul in Turkey. Based on theoretical considerations, a model was proposed to examine the interrelationships among MO, NSD‐performance and financial performance.
Findings
Data analysis reveals that while MO has a strong and positive effect on NSD‐performance, it has no significant effect on financial performance. Also a strong and positive relationship was noted between NSD‐performance and financial performance. Finally, the findings also provided evidence for the mediating role of NSD‐performance in the relationship between MO and financial performance in the hospital industry.
Research limitations/implications
First, due to relatively small sample size, a caution should be exercised when interpreting the results. Second, the data were collected from hospitals in Turkey, which may restrict to some extent generalizability of findings. Third, we relied on the subjective evaluations of senior executives. It would therefore be useful to replicate the results with objective measures of performance indicators.
Practical implications
Although there is compelling evidence that MO has a positive effect on business performance, it alone may not be able to produce superior performance. Many hospitals are committed to MO and new services development. The framework clearly indicates that a strong commitment to both the NSD‐performance and marketing areas is essential for improving the financial performance of hospitals. Also, to remain competitive in today's healthcare industry, hospital managers should all keep pace with the daily changes in the market place and stay attuned to NSD activities and quality management practices.
Originality/value
The main thrust of this study is to investigate whether the relationship between MO and financial performance is mediated by NSD‐performance in hospital industry. This constitutes the novelty of this research as most prior empirical research investigating a mediating mechanism through which MO affects firm performance largely focused on other factors with no or little emphasis being placed on NSD activities or NSD‐performance in healthcare context.
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This paper investigates the paths through which innovation community affects content providers' new service development (NSD) performance in technology-based service ecosystem and…
Abstract
Purpose
This paper investigates the paths through which innovation community affects content providers' new service development (NSD) performance in technology-based service ecosystem and contingency factors exist in the paths.
Design/methodology/approach
The research model is built based on service-dominant (S-D) logic, exploring the relationship among innovation community, content providers' knowledge acquisition and content providers' NSD performance as well as the moderating role of content providers' technology readiness and content providers' complexity. Using survey data collected from 386 content providers of selected open network platforms in China, this study finds broad support for the proposed research model.
Findings
The findings of this paper reveal that content providers' tacit knowledge acquisition from users plays a mediating role between the innovation community and new service ratings. Content providers' technology readiness plays a positive moderating role in the relationship between innovation community and their explicit or tacit knowledge acquisition. Content providers' task complexity negatively moderates the effects of their explicit knowledge acquisition from users on new service volumes or ratings, but positively moderates the effects of tacit knowledge acquisition from users on new service volumes or ratings.
Originality/value
Though extant literature highlights the importance of knowledge acquisition in NSD performance, few studies explore the antecedents of content providers' knowledge acquisition from users and the paths through which these antecedents affect content providers' NSD performance. Moreover, boundary conditions exist in the process of improving NSD performance are generally ignored in previous literature. With the lens of S-D logic, this paper explicates how content providers of different technology readiness and different task complexity enhance their new service volumes and ratings through acquiring explicit and tacit knowledge from users in innovation community. Adopting S-D logic from marketing area to NSD area, this paper not only enriches the theoretical accumulations of antecedents and boundary conditions of content providers' NSD performance but also offers insights for content providers and users on how to synergistically advance NSD activities and co-create value in the technology-based service ecosystem.
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Todd Morgan, Wesley Friske, Marko Kohtamäki and Paul Mills
This paper aims to examine how customer participation in new service development (NSD) and customer relationship management (CRM) technology can improve the NSD performance of…
Abstract
Purpose
This paper aims to examine how customer participation in new service development (NSD) and customer relationship management (CRM) technology can improve the NSD performance of manufacturing firms. Additionally, the paper examines CRM technology usage to understand how it impacts new service performance both individually and jointly with customer participation in NSD.
Design/methodology/approach
This study is a survey of 216 manufacturing managers who are overseeing the development of new services at their organizations. For the analysis, structural equation modeling is used with Amos 22.0. Measures of all latent variables in the analysis pass the traditional tests for reliability, convergent validity and discriminant validity. Furthermore, the results of a common latent factor test for common method variance and Harman’s one-factor test indicate that common method bias is not a source of endogeneity in the model.
Findings
Customer participation has a positive effect on NSD performance. CRM technology usage also has a positive effect on NSD performance. The effect of customer participation on NSD performance is enhanced by CRM technology. The results of a post hoc analysis suggest that the usage of CRM technology has the most benefit for managing the technical aspects of customer participation.
Research limitations/implications
This study has methodological limitations that may impact the generalizability of results. For instance, it is based on cross-sectional self-reported survey data, which is more subjective than longitudinal secondary data. Survey research lacks the depth and nuance of qualitative research designs, which are commonly employed to study NSD. In addition, this study focuses on large US manufacturing firms. The authors do not include small firms or international organizations in the sample. Despite these limitations, they believe the findings can provide significant contributions to the NSD literature.
Practical implications
Although prior research has shown that customer participation and CRM technology can individually influence new product development (NPD) performance, the results indicate they are equally effective factors in the development of new services. Furthermore, the authors show that customer participation can be enhanced via the use of CRM technologies. The interaction is more pronounced within the technical aspects of NSD.
Originality/value
This study contributes to the NSD literature, and it also has implications for managers leading NSD efforts in traditional tangible-product industries. The findings provide additional evidence that customer participation is an effective NSD strategy for manufacturing firms (Morgan et al., 2019). Furthermore, CRM technology is integral to NSD performance. CRM technology not only has a direct effect on NSD performance, but the interaction term of customer participation by CRM technology also has a positive effect on NSD performance.
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Bo Edvardsson, Thomas Meiren, Adrienne Schäfer and Lars Witell
The aim of this study is to investigate the role of key strategic factors in new service development (NSD). In particular, the role of service development strategy, a formalised…
Abstract
Purpose
The aim of this study is to investigate the role of key strategic factors in new service development (NSD). In particular, the role of service development strategy, a formalised development process, integrated development teams and customer co‐creation were investigated and the results were compared with managers' beliefs.
Design/methodology/approach
The study used a sample of more than 500 service development projects to test a NSD conceptual model. Regression analysis was used to test the relative importance of the key strategic factors, and the results were compared with managers' beliefs.
Findings
The results show that managers believe that customer co‐creation is most important in order to succeed with NSD. However, contrary to management belief, a service development strategy is the “missing link” in improving NSD performance. In addition, the research highlighted an interaction effect between integrated development teams and customer co‐creation, which means that project managers should focus on individual competencies on the development team and how they interact with customers throughout the NSD process.
Originality/value
For a long time, NSD has failed to receive the attention it deserves, not just in practice but also in service research. This study shows that the number of new services put on the market and then withdrawn because of low sales remains as high as 43 per cent. This paper contributes knowledge on how to reduce the number of failures in NSD by pointing out the key strategic factors that influence NSD performance.
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Chris Storey and Frank M. Hull
Contingency theory suggests that effective strategies and structures are not universal but dependant upon situational factors. The purpose of this paper is to explore how the way…
Abstract
Purpose
Contingency theory suggests that effective strategies and structures are not universal but dependant upon situational factors. The purpose of this paper is to explore how the way service firms compete acts as a strategic contingency, moderating the effect of a new service development (NSD) system on innovation performance. Two knowledge‐based strategies are tested as contingency factors. One strategy adds value for customers via the delivery of personalized knowledge‐based services; the other strategy adds value by services exploiting codified knowledge.
Design/methodology/approach
A sample of 70 large service enterprises is used to test a contingency model of service innovation. The NSD system is a synergistic meld of basic building blocks of NSD systems: people organized cross‐functionally, the discipline of formal processes for guiding development activities, and the deployment of enabling tools/technologies. Regression analysis is used to test the relative impact of these three elements on innovation performance contingent on the type of knowledge strategy employed.
Findings
While each element of the NSD system has an effect on performance, the optimal design is contingent on the strategy the firm employs. If firms enact a personalization strategy, NSD systems that score high in the deployment of cross‐functional organization and disciplined processes are higher performers. If firms emphasize a codification strategy, NSD systems that score high in the deployment of tools/technologies are higher performers. Combinations of the two kinds of strategy permit the construction of a four‐cell classification of service firms. This typology is used to further explore the implications for how managers design NSD systems to optimize performance.
Originality/value
This paper uses a contingency approach to demonstrate that an optimal NSD system is dependent upon the type of knowledge strategy firms deploy. The impact on performance of three components of NSD depends on the degree of either codification and/or personalization in the service offering. A novel approach based on the knowledge management literature is employed creating a typology of service firm strategies. This is the first time such a typology has been postulated.
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The purpose of this paper is to integrate existing streams of literature in service innovation and services marketing and adopt an internal perspective of the new service…
Abstract
Purpose
The purpose of this paper is to integrate existing streams of literature in service innovation and services marketing and adopt an internal perspective of the new service development (NSD) process by discussing the role of some intra‐organizational contingencies that determine NSD project performance.
Design/methodology/approach
This paper develops a number of propositions applicable to new service development projects, in order to shed light on how internal team dynamics and contextual antecedents of service innovation affect NSD project performance.
Findings
The importance of adopting an internal market orientation (IMO) for new service development performance is illustrated. The role of intrateam contingencies, such as trust, relationship conflict and political activity and some contextual antecedents, such as resource allocation effectiveness and efficiency and cross‐functional integration for NSD project performance are also discussed.
Originality/value
This study is clearly a fruitful path of exploration ahead to help NSD project managers understand the importance of the internal environment for NSD performance. Moreover, different proxies of NSD performance are suggested in order to identify organizational gains stemming from NSD initiatives.
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Spiros Gounaris, George Chryssochoidis and Achilleas Boukis
This paper reports on the impact of perceived resource adequacy (PRA) and competence (PRC) on new service development (NSD) teams’ internal performance (IP). This study aims to…
Abstract
Purpose
This paper reports on the impact of perceived resource adequacy (PRA) and competence (PRC) on new service development (NSD) teams’ internal performance (IP). This study aims to explore the indirect effect of internal market orientation (IMO) adoption, as a dynamic capability, on both PRA and PRC through the shaping of the emerging dynamics within NSD teams.
Design/methodology/approach
Using a hierarchical research design, the authors use a meso-theory approach to test a path-analytic framework against 116 NSD managers (offering data at the macro- or organisational level) and 543 NSD team members (offering data at the micro- or team level).
Findings
Both PRA and PRC are important in explaining NSD teams’ IP at the organisational level, though their explanatory power varies. The adoption of IMO is also an important antecedent to this factor through the (indirect) effect on the team climate and degree of integration.
Research limitations/implications
IMO is an important dynamic capability that allows management to transform the mindset of employees, even if they do not directly interact with customers. In NSD efforts, this reflects on the team’s perceptions of the adequacy of the resources they have to deliver the project through the managerial interventions at the team level, which (mainly) explains the team’s IP.
Practical implications
Adopting an IMO allows the development of a dynamic capability that carries wider benefits for the service organisation, as this has positive implications not just for frontline employees. Specifically, NSD efforts are likely to become more resource-efficient as a result of IMO adoption because of the interventions of management during the development effort.
Originality/value
This empirical study is the first to test the impact of IMO adoption as a dynamic capability and in a context other than frontline employees from a meso-theory perspective. This allows considering the different effects at the appropriate levels (macro and micro), thus enabling a more accurate definition of the mechanism through which companies benefit from IMO adoption.
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