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...