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Provides a review and ready reference to recent writings on new service development (NSD), especially for the financial services sector. Discusses the types of new service development, the purposes served by them and the processes. Refers to the key activities of NSD and measures its success. An annotated bibliography supplies a very useful guide to the new service development literature.

The purpose of this research is to answer the question: how can a new service development (NSD) program in the financial services industry be managed? More specifically, this research has two objectives: to explore the stages in the NSD process; and to explore how customer input may be obtained in the various stages of the development process. After a review of the new product development literature, the case study methodology involving in‐depth interviews with managers and their customers is described. Analysis of the data showed that there were ten stages in the NSD process, and whether those stages were managed linearly or sequentially was a function of the size of the firm. In addition, how NSD managers obtained customer input in each stage, was uncovered. Implications for NSD managers include which stages to concentrate on, and how to capture customer input.

The purpose of this paper is to develop a deeper understanding of the new service development (NSD) research field. It addresses its scientific production, social and intellectual structures, and maturity.

This study uses a bibliometric-based literature review. Quantitative and qualitative analyses are performed on a sample of 277 NSD articles (published from 1984 to 2014). These articles are organized into four periods to improve the analyses from an evolutionary perspective: Early Writings (1984-1995), Advancing of Literature (1996-2001), Progressive Literature (2002-2008), and Recent Works (2009-2014).

The scientific production in the NSD field has grown significantly over these four periods, and the entry of new authors has extended the social structure. However, collaboration networks seem disconnected from one another. Nonetheless, the intellectual structure has shown great progress, making NSD an independent area of research and discovery from the new product development domain, with its own foundations and expansions into new topics. Although the NSD research field has not yet reached maturity, it is consistently moving toward it.

This study delivers a multiperspective view of research on NSD using a mixed quantitative and qualitative approach. It provides new insights into the discussion of the field’s maturity and can be used as a roadmap for academics and practitioners who would like to understand the state of existing knowledge and are looking for research opportunities.

This study aims to examine value cocreation in terms of interfirm collaborations between service firms, their business customers and business partners at different stages of a new service development (NSD) process.

The study develops and tests hypotheses that examine the roles played by business customers and partners in NSD, assuming resource dependency of the focal firm during three NSD stages (ideation, development and deployment). Empirical data were collected from 200 NSD projects and structural equation modelling was used to test the hypotheses.

The results show that business customer collaboration has a positive effect on ideation performance and development performance, whereas business partner collaboration has a positive effect on deployment performance. These finding support the notion that the value cocreating roles of business customers and partners vary across NSD stages.

Future research should focus on how business partners can be actively involved in the NSD process and how the interests of different parties can be safeguarded. The use of longitudinal data will allow a better examination of the process dynamics.

The study provides managerial implications for service managers in terms of acquiring and allocating resources needed from business customers and partners during different NSD stages.

The study contributes to the growing literature on value cocreation in NSD by empirically demonstrating the respective performance contributions of business customers and partners during different stages of NSD. Moreover, the results also shed light on interfirm collaboration mechanisms from the perspective of resource dependence theory.

Previous research suggests new service development (NSD) is characterized by less stable offerings, less formal processes and is more emergent than new product development. In face of these issues, it seems managers must concern themselves more with the management of the underlying resources. To understand this distinctive nature of NSD, this study aims to investigate the relationship between NSD and operations resources.

Building on the resource and capabilities perspective, a multiple case study was designed to investigate how the NSD is influenced by and reconfigures operations resources and capabilities. Data were collected in three providers of bespoke B2B services.

The paper proposes a model of NSD composed of three stages: emergence, accommodation and consolidation. This model describes the process that takes place when providers redeploy their operations resources and capabilities to implement emerging service ideas. The findings also show the challenges associated with the reconfiguration of operations resources and capabilities and with the reconciliation of the requirements of the existing and new services.

The paper looked at services successfully implemented in knowledge‐intensive SMEs. Other studies could explore these NSD processes in other contexts and initiatives that failed.

The paper presents the risks and efforts involved in using existing resources to take advantage of emerging service ideas.

The model takes a fundamentally different perspective from many NSD models. It shifts the focus from managing the new service to managing the resources that underpin the evolving and emerging service ideas and offerings. This paper should interest people willing to understand the distinctive nature of NSD.

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.

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.

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.

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.

The purpose of this paper is to analyse the process followed by sponsors and sport properties in developing their sponsorship deals as seen from a new service development (NSD) perspective. Sponsorships are expensive and can be a source of sustainable competitive advantage if managed appropriately. Therefore, the authors need to approach sponsorship strategically and formalise sponsorship decision-making. Sponsorships are considered to be complex, relationship-based, business-to-business services, and the development of such services has been analysed in the NSD literature. As past research on the development process of sponsorship deals is limited, the use of an NSD perspective can help in formalising sponsorship decision-making.

Four case studies were conducted involving two professional, premier league football clubs and two sponsoring organisations, one major sponsor for each club. One of the dyads involved a brand new sponsorship deal and the other a renewal.

Results showed that in both dyads, the development process of the new service follows the NSD process of other complex, relationship-based, business-to-business services and involves three main phases, namely, information collection, proposal preparation and presentation or receipt and analysis, and negotiations and contract sign. All four firms use a semi-formal and flexible process, whereas the actors in each stage vary. Also, the new deal requires a more lengthy process than the renewal, following the example of really new and me-too services. Multi-functional teams are not present, and top management involvement is important only in the last stage of the process.

This paper helps in analysing the development process of new sponsorship deals, as new business-to-business services. However, it involves only four cases and has limited generalisability. Future research should substantiate results with more cases or quantitative research.

Results can help sponsors and sponsees to structure their processes for successful development of new sponsorship deals. Also, as new sponsorship deals seem to be developed the same way with other business-to-business, complex services, potential sponsors that are big service providers can probably enjoy synergies from using the same or a slightly different process than the one they use for developing their main services. Finally, the use of a semi-formal and flexible process in sponsorship development can be helpful in dealing with customised services and rapid NSD that is critical for new service success.

It is the first time that the development process of sponsorship deals is approached from an NSD perspective and analysed as a new business-to-business service.

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.

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.

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.

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.

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.

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.

Few research studies have been done to investigate the issue of new service development (NSD) in an emerging market. To address this gap in the literature the aim of this paper is to document a study of the NSD process and the strategy of business‐to‐business financial service firms in India.

The author conducted surveys of 148 multinational service firms operating in India and 126 local and indigenous Indian service firms belonging to the financial services industry.

The findings suggest that significant differences exist between multinational service firms operating in India and local/indigenous Indian firms. That is, service firms belonging to these two varied groups use different strategies to compete in the industry and emphasize different sets of development stages in service innovation.

The analysis has been restricted to one emerging market, i.e. India. This suggests the need for further studies of NSD in other emerging markets of the world.

The findings of this research validate the initial contention that NSD practices vary from company to company, and thus there cannot be a “one size fits all” approach to service innovation. The insights from this study can help service managers to better understand and manage their NSD programs in an emerging market such as India.

To the best of the author's knowledge, this research represents the first attempt to investigate empirically the NSD practices of financial service firms in India.

Customer interaction in new service development is a key success factor for new services. However, the knowledge about the process and techniques of customer interaction in any Asian and emerging market is limited. Therefore, the purpose of this article is to investigate the process of customer interaction in new service development in an emerging market – India.

The article is based on longitudinal case research involving 24 service firms, in which 48 managers and 24 customers were interviewed and the paper followed the development process of several new service projects in real time.

The research answers several critical questions involved in customer interaction in new service development that include: What are the modes of customer interaction in NSD? What are the stages of customer interaction? Whom a firm shall interact with? What is the role of employees in customer interaction? And what are the pitfalls in customer interaction process?

The results and findings of this study will help managers improve the odds of developing successful new services in the emerging markets.

The research is the first attempt to examine the customer interaction practice of service firms in an emerging market – India. Therefore, it contributes to the extant literature of new service development and innovation.