Service firms recognize the key role that product and process innovation play in building and sustaining competitive advantage in the marketplace. This empirical study tests a model of new service development (NSD) that enhances performance outcomes by prescribing specific roles for customers and frontline employees in the NSD process. Findings are based on in-depth managerial interviews and survey data collected from 160 organizations across a variety of service sectors. The results support hypotheses that customer and frontline employee participation in specific stages of the NSD process indirectly affects sales performance and project development efficiency outcomes. Positive effects are mediated by the new service success factors of service marketability and launch preparation. To produce successful new services, firms should involve customers in the design and development stages to help identify market opportunities, generate and evaluate new service ideas, define desired benefits and features of the potential service, and provide extensive feedback for product and market testing. Frontline employees are less effective than previously thought as a source of new service ideas. Firms should instead focus on incorporating those personnel in the full launch stage to effectively promote and deliver the new service.

Businesses rely on knowledge interfaces to gather and integrate knowledge that drives innovation and builds competitive advantage. But key knowledge interfaces such as cross-functional teams (CFTs), frontline employees (FLEs), and learning orientation have not shown consistent effects on innovation outcomes in prior research. This study addresses that problem by testing a mediation model that extends the service-dominant logic service innovation framework developed by Ordanini and Parasuraman. Based on analyses of 160 new service development (NSD) projects, the authors find that CFTs, FLEs, and learning orientation consistently influence NSD sales and process efficiency outcomes when they first create a service having (1) superior attributes and expert frontline employee service delivery (service marketability) and/or (2) a well-targeted launch with formal promotion to internal and external markets (launch effectiveness). Those NSD project characteristics in turn yield favorable new service performance results. Specifically, service marketability and launch effectiveness mediate the influence of CFTs on NSD outcomes. Launch effectiveness mediates the influence of learning orientation, and service marketability mediates the impact of FLEs. In ranking the organizational resources, the study finds that CFTs and learning orientation have greater effect on NSD sales performance than do FLEs. The results highlight the importance of aligning CFTs, FLEs, and learning orientation with NSD project characteristics in order to maximize sales performance and process efficiency.

A study is reported that investigates the goals underlying undergraduate students' engagement in their major classes, nonmajor classes, and in extracurricular activities. The qualitative study employs both focus groups and goal-mapping exercises. The results suggest that students tend to focus on utilitarian, attribute-level considerations mainly related to credentialing for purposes of employment. The results are considered from the perspectives of judgment and decision making, learning models, and the emerging service marketing perspective. These model considerations underscore an argument for moving toward models of education delivery focusing on value co-creation instead of the current emphasis on providing value to students. A series of recommendations are offered to help facilitate faculty efforts to increase course engagement, particularly in large-section course offerings. However, the authors ultimately conclude that student engagement with their course-related experiences will best be served in models of value co-creation by a focus on more than intellectual maturity in education. Specifically, an argument is presented for also targeting moral and motivational maturity. The practical and research implications of the study are presented and discussed.

Access to this document was granted through an Emerald subscription provided by emerald-srm:198285 [] For AuthorsIf you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The study demonstrates that firms can effectively involve customers in new service development (NSD) to create radically innovative, high-performing new services. Prior research found no effect of customer involvement on radicalness in NSD programs, but the current study provides evidence that customer involvement in the design stage of NSD projects can increase the radical innovativeness of a new service. Design/methodology/approach -Surveys from 160 firms captured information on the development process, participants and outcomes of recent service innovation projects. Direct effect and mediation hypotheses were tested using structural equation modeling. Findings -Customer involvement in the NSD process increases the innovativeness of a new service when customers are involved in the design stage and when the influence is mediated by process complexity. Customer involvement in the development stage has no significant effect on service innovativeness. Process complexity also mediates the positive influence of frontline employee and cross-functional team involvement in the NSD process on service innovativeness. Practical implications -To produce radically innovative new services, managers should: focus on customer involvement in the design phase and build an understanding of how the customer creates value-in-context, and use a detailed but flexible development process and provide extensive opportunities for interaction of customers, frontline employees and cross-functional teams throughout the NSD process. Originality/value -The study draws on complexity theory to explain how a complex NSD process enhances participants' creativity and learning and increases the innovativeness of a new service.

Purpose -To demonstrate the linkage between Porter's cluster theory and supply chain management, and provide evidence of their potential joint positive impact on competitiveness and firm performance. Design/methodology/approach -The paper examines the linkage between cluster theory and supply chain management using data from a case study of the Amish furniture industry in Homes County, Ohio, USA. Findings -Using the Amish furniture industry and a representative furniture firm as examples, the paper shows the positive impact of operating within an integrated supply chain in a geographically concentrated cluster. Research limitations/implications -Use of a single case study approach limits the generalizability of the findings; the paper recommends further study of linkages in other industries and locations. Practical implications -The study suggests that firms build competitive advantage by initially focusing primarily on local resources when selecting supply chain partners, rather than looking only for low cost advantage through distant sourcing. Originality/value -This paper adds to the literature on business linkages by proposing an expanded definition of clusters as geographical concentrations of competing supply networks.