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Article
Publication date: 24 October 2023

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.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 5 October 2012

Pilar Carbonell, Ana I. Rodriguez‐Escudero and Devashish Pujari

Customer involvement has been recognized as a key factor for successful service development. One important aspect affecting the outcome of new service development (NSD) projects…

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Abstract

Purpose

Customer involvement has been recognized as a key factor for successful service development. One important aspect affecting the outcome of new service development (NSD) projects in whose development customers are involved is the choice of the appropriate participating customer. This study aims to examine the effect of two customer characteristics (relational closeness and lead‐userness) on four indicators of new service performance.

Design/methodology/approach

The paper uses data from 102 NSD projects. Covariance‐based path analysis is used to test the model.

Findings

The results reveal that involving close customers in the NSD process has a positive direct effect on service advantage and speed to market and a positive indirect effect on market performance. The involvement of lead users, on the other hand, has a positive effect on service newness and service advantage, and a negative effect on market performance.

Research limitations/implications

The focus on Spanish companies puts constraints on the generalizability of the results to other national contexts. Future research should replicate this study in different countries. Also, future research could explore more deeply the performance impact of close customers and lead users by collecting data on the roles that customers can play in NSD.

Practical implications

The findings from this study suggest that firms need to make conscious choices about the types of customers to involve in service innovation as different types of customers affect new service performance differently.

Originality/value

This study makes an original contribution by investigating the effect of customer's relational closeness and customer's lead userness on four indicators of NSD performance.

Article
Publication date: 23 November 2021

Qiang Wang, Ilan Oshri and Xiande Zhao

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

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

European Journal of Marketing, vol. 56 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 24 May 2013

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…

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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.

Details

European Journal of Marketing, vol. 47 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 15 August 2023

Osman Mohamed Ali Osman and Zhaoquan Jian

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.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 12
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 September 2020

Lei Li, Bo Liu and Huimin Mu

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.

Details

Industrial Management & Data Systems, vol. 120 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 12 September 2016

Colin C.J. Cheng and Eric Shiu

While service scholars have generally supported the idea that service modularity enhances firm performance, the literature offers very little evidence of the actual process…

Abstract

Purpose

While service scholars have generally supported the idea that service modularity enhances firm performance, the literature offers very little evidence of the actual process through which service modularity continuously contributes to firm performance. The purpose of this paper is to examine the link from a capability perspective: service modularity capabilities-service modularity-new service advantage-firm performance, as well as the moderating role of radical innovation capability in the effect of service modularity on new service advantage.

Design/methodology/approach

To examine this link, data were collected from a cross-industry survey of 231 leading service firms. Structural equation modeling and hierarchical moderated regression analyses were employed to test the model.

Findings

Analyses reveal that new service advantage mediates the service modularity-firm performance relationship. Moreover, service modularity capabilities act in an important antecedent role to configure service modularity. Among the findings, it is worth emphasizing that radical innovation capability not only strengthens the positive effect of, but also alleviates the negative effect of, service modularity on new service advantage.

Originality/value

This study provides a more complete understanding of how service modularity enhances firm performance by discovering the hidden role of new service advantage that bridges service modularity and firm performance, clarifying the role of service modularity capabilities in configuring service modularity, and confirming the important role of radical innovation capability in sustaining the effectiveness of service modularity.

Details

Journal of Service Theory and Practice, vol. 26 no. 5
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 29 July 2020

Primitiva Pascual-Fernández, María Leticia Santos-Vijande and José Ángel López-Sánchez

This study aims to examine the interplay among three key drivers of service innovation success in the hospitality industry. Specifically, how internal marketing practices in…

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Abstract

Purpose

This study aims to examine the interplay among three key drivers of service innovation success in the hospitality industry. Specifically, how internal marketing practices in hotels influence frontline employee involvement, training and empowerment for the new service provision (frontline employee ITE) and new service advantage. The study also analyzes how success factors affect new service internal and external performance.

Design/methodology/approach

Using data collected from managers of 256 hotels located in Spain, the model is tested through structural equation modeling data analysis.

Findings

Internal marketing practices have a positive and direct effect on frontline employee ITE, which, in turn, strengthens new service advantage. Frontline employee ITE also has a positive effect on the employees’ satisfaction and motivation (new service employee outcomes). New service employee outcomes and new service advantage reinforce the new service customer outcomes in terms of customer’s loyalty, improved hotel image and perceived leadership. Both new service employee and customer outcomes benefit new service market outcomes.

Research limitations/implications

The findings are obtained from a cross-sectional study. Hotel managers must pay particular attention to internal marketing practices, as they foster key drivers of new service success that ultimately improve new service internal and external performance.

Originality/value

This study extends the literature on service innovation success providing for the first time a study of the interrelationships among organizational and project-level new service success factors in the hospitality context.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 9
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 7 March 2019

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…

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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.

Details

Journal of Service Management, vol. 30 no. 2
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 9 August 2021

Seyedeh Khadijeh Taghizadeh, Syed Abidur Rahman and Malliga Marimuthu

The purpose of this paper is to examine the influence of the dialogue, access, risk assessment and transparency model of value co-creation processes (dialogue, access, risk and…

Abstract

Purpose

The purpose of this paper is to examine the influence of the dialogue, access, risk assessment and transparency model of value co-creation processes (dialogue, access, risk and transparency) on new service market performance (NSMP) with the mediating role of value-informed pricing in the context of business-to-business (B2B).

Design/methodology/approach

The data were collected through a cross-sectional survey of 230 managers of the telecommunications industry in Malaysia and analyzed through structural equation modeling using SmartPLS v.3.3.3 software.

Findings

This study found that dialogue and transparency are predictors of NSMP. The findings indicate that value-informed pricing plays a mediating role in the relationship between dialogue and transparency with NSMP.

Practical implications

Disclosing pricing related information, providing up to date information to the customers, making clear to the customers about new offerings would certainly influence value-informed pricing. Thus, managers can enhance customer engagement in the interaction processes to better understand customer expectations of new services and how the new services should be priced.

Originality/value

The link between value co-creation and value-informed pricing has been only conceptualized in literature. This study has opened a new stream of research, examining the relationship of interactional-based value co-creation process with value-informed pricing and NSMP in the context of B2B relationship from providers’ perspective.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 4
Type: Research Article
ISSN: 0885-8624

Keywords

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