Antecedents of New Service Development Effectiveness

Abstract

This article examines the strategic process of new service development (NSD). The authors empirically explore the strategic influence of team-based organizational structure, NSD process design, and information technology (IT)choicesService businesses are vital to the economies of industrialized countries, as they represent the sector with the highest growth in gross domestic product. Yet, many services face hypercompetitive environments (D'Aveni 1994) and, as a result, are in a constant state of flux. Sustaining competitiveness in dynamically changing markets is difficult. Rapid technological advancement, coupled with globalization, is rapidly making service offerings obsolete and changing both the product content and distribution channels. These factors, in turn, create a constant churning of customer requirements and increasing qualifications for service viability.Given these service industry dynamics, how new services are developed and launched is becoming increasingly important to the competitiveness and growth of service organizations (Fitzsimmons and Fitzsimmons 1999). Unfortunately, the impact of strategic operations choices on the firm's capacity for swift and effective new service development (NSD) is not well understood. Service operaWe thank two anonymous referees and the editor for their valuable comments during the revision process. tions management would indeed benefit from an enriched understanding of the NSD process, as it may be distinctive from manufacturing-based new product development (Fitzsimmons and Fitzsimmons 1998;Johne and Storey 1998;Menor 2000). Previous research on goods-oriented new product development provides useful guidance for determining which strategic choice variables are likely to affect NSD (Meyer and DeTore 1999; Nie and Kellogg 1999; Sundbo 1998). The primary goal of this exploratory study is to assess, at the most general level, the following question: What is the impact of theory-based, strategic operations choices on the speed and effectiveness of a firm's NSD efforts?Although grounded in service operations strategy, marketing and strategy research also support the selection of these operations choices. Through a synthesis of earlier studies, Miller (1986) hypothesized a strategic configuration he refers to as the "innovative differentiator." Strategically innovative firms resembling this configuration rely on open and informal communication systems, intense collaboration, and organic organizational structures to rapidly adapt to new environments (i.e., markets) and introduce novel products and services. When considering the speed and effectiveness of these development processes, more contemporary research has similarly suggested that two strategic choices have significant impact on product development outcomes, namely, (a) the design of the NSD process (Edvardsson, Haglund, and Mattsson 1995;Scheuing and Johnson 1989;Terrill 1992; Voss et al. 1992) and (b) the firm's organizational structure (Olson, Walker, and Ruekert 1995;Terrill 1992), such as the use of cross-fun...

Information Systems Outsourcing

“…Organizational integration plays a central role as a key determinant of successful product and service development. This broadened understanding was associated with the diverse functional backgrounds of individuals in different departments that are brought into the value creation process (Froehle et al 2000;Milliken and Martins 1996;Schilling and Hill 1998). Such a positive effect of organizational integration is explained by the increased amount and variety of information available within different subunits and, as a result, a broadened understanding of problems.…”

Gestão da inovação: considerações em torno do processo de desenvolvimento de serviços; Gestión de la innovación: consideraciones del proceso de desarrolo de nuevos servicios

“…capacidade de inovação, competência central, desenho do processo, inteligência competitiva (FROEHLE et al, 2000;VARGO;LUSCH, 2004 Este artigo apresenta resultados de um estudo que envolveu duas fases: 1ª) estudo exploratório de casos múltiplos e 2ª) um estudo qualitativo em torno do processo de desenvolvimento de novos serviços, quando esse ocorre no contexto das redes colaborativas. Dessa forma, o estudo contribui para um melhor entendimento de quais são as fases envolventes num complexo processo de desenvolvimento de serviço, quais são as principais atividades envolventes nesse processo e como as redes colaborativas evoluem ao longo das diferentes fases do processo de NSD.…”

A Resource‐Process Framework of New Service Development

“…Similar questions can be raised about NSD practices in each RPF subcategory, possibly resulting in a series of testable propositions of the form "practice X occurring before/after/concurrent with practice Y results in better performance for the service/business unit/firm." Brentani (1989Brentani ( , 1995 External communication Establish and maintain good communication with suppliers, partners, and customers outside the firm as potential sources of new ideas and enhanced market insight Voss et al (1992); Edvardsson and Olsson (1996) Diversity appreciation 1 Promote the sharing of ideas and knowledge related to NSD across functional boundaries within the organization Froehle et al (2000); Edvardsson and Olsson (1996); Terrill (1992); de Brentani (1989); Loch et al (1996) Resources-Organizational (2000) Lines of responsibility Make sure the firm's organizational structure defines lines of responsibility and authority for developing new services Edvardsson and Olsson (1996) Managerial support Require support from and involvement of senior management de Brentani (1989); Chiesa, Coughlan, and Voss (1996) Reward structure Base rewards on performance of NSD team (versus individual reward) Team development 1 Develop your employees' ability to work effectively in cross-functional NSD teams Froehle et al (2000); Edvardsson and Olsson (1996); Terrill (1992); de Brentani (1989); Loch et al (1996)…”