New service development: areas for exploitation and exploration
01 Apr 2002-Journal of Operations Management (No longer published by Elsevier)-Vol. 20, Iss: 2, pp 135-157
TL;DR: The management of new service development (NSD) has become an important competitive concern in many service industries as discussed by the authors, however, NSD remains among the least studied and understood topics in the service management literature.
About: This article is published in Journal of Operations Management.The article was published on 2002-04-01. It has received 688 citations till now. The article focuses on the topics: Service system & New product development.
Citations
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TL;DR: In this article , the role of innovative culture, market orientation, and top management support as antecedents of new service development process excellence in hotels is analyzed for a sample of 133 hotels.
Abstract: Despite the importance of the new service development process for new service success, little is known about the drivers of new service development process excellence or how to execute this process while including all important stages and guaranteeing excellence in the execution of each stage. This study analyses the role of innovative culture, market orientation, and top management support as antecedents of new service development process excellence in hotels. The results obtained for a sample of 133 hotels provide useful insights into how to improve new service performance. Both innovative culture and market orientation have a positive impact on new service development process excellence, although top management support has the strongest effect. New service development process excellence benefits new service quality, which reinforces new service market performance. The robustness of our findings is tested considering innovation type (radical versus incremental services).
01 Jan 2023
TL;DR: Pilat as mentioned in this paper predicts that the twenty-first century will be dominated by services, as they already dominate most developed economies, given that significantly more than half of these countries' gross domestic product is in the service sector.
Abstract: From the beginning of the industrial revolution, services started becoming more important for the development of the modern economy. It is no coincidence that banks and railroads, two of the largest service sectors, had a very rapid growth at the same time as the Industrial Revolution. Without such services, it is arguable that the economic developments specific to the modern economy, like large-scale production, could never have been so quickly realized. Pilat projects that the twenty-first century will be dominated by services, as they already dominate most developed economies, given that significantly more than half of these countries' gross domestic product is in the service sector. One crucial phenomenon that dramatically changed the service sector appeared in the 1990s: The Internet and The World Wide Web. Beginning in the mid-1990s, when the Internet became available on a large scale, increasingly electronic services became widely available to mass consumers. The growth of the service sector can be seen as a manifestation of the changes brought by the Internet and the information revolution, which has brought great developments in computing, data storage, communication and interaction. The Internet brought many advantages to the service sector, like personalized service, high-quality customer service, and improved supply chain management, and therefore an increasing proportion of services started to be electronic services delivered over the internet.
01 Jan 2007
TL;DR: In this paper, a network-based theoretical framework is proposed to examine how firms are able to achieve "economies of repetition" proposed by Davies and Brady, which is a reasonable proxy for economies of scale in the service innovation context.
Abstract: Service innovation, unlike product innovation, is not easily scalable in the production process. In general, as firms attempt to grow, one potential direction for growth is through their ability in applying the same processes and resources used for a single unit of production to larger volumes, thus saving costs through economies of scale. Whereas product-oriented companies can easily achieve cost reduction through scientifically tested and validated operational processes for product innovation, the peculiar nature of service offerings do not permit such formal processes to be applied to expansion of service offerings. In this study, we investigate the “service innovation dilemma”— the problem of diseconomies of scale in a world of increasing demand for services. We adapt a network-based theoretical framework to examine how firms are able to achieve “economies of repetition” proposed by Davies and Brady, which is a reasonable proxy for economies of scale in the service innovation context. We derive several propositions, which suggest that firms can develop sustainable competitive advantage in services through “real” and “virtual” embedded inter-firm and customer co-creation (market) mechanisms. The study also postulates some useful implications for theory and practice in services and related sectoral innovations.
TL;DR: Wang et al. as mentioned in this paper examined the relationships among the dimensions of service innovation (product innovation, process innovation, marketing innovation, organizational innovation and organizational innovation), experiential relationship quality (experiential value, experiencial satisfaction, experientially trust and experienial commitment), and shopping outcomes (positive word-of-mouth (WOM) and patronage intentions).
Abstract: This study aims to examine the relationships among the dimensions of service innovation (product innovation, process innovation, marketing innovation and organizational innovation), the dimensions of experiential relationship quality (experiential value, experiential satisfaction, experiential trust and experiential commitment) and the dimensions of shopping outcomes ((positive word-of-mouth (WOM) and patronage intentions)). Data were obtained from 485 respondents at one smart unmanned store in Wuhan of China, and were analyzed using structural equation modeling. The findings show that product innovation, process innovation, marketing innovation, organizational innovation and experiential value have a direct positive influence on experiential satisfaction. Also, experiential value, experiential satisfaction and experiential trust have a direct positive influence on experiential commitment, which in turn lead to positive WOM, while experiential trust has a positive influence on patronage intentions. This study concludes with key implications arising from the analyses and further research opportunities.
12 Aug 2008
TL;DR: The results of the research illustrate that by using the six sigma methodology in new service development, firms can experience greater efficiency in their development processes with regards to improved financial results and higher customer satisfaction.
Abstract: The service industry has become a leading factor in economies worldwide, and great deals of studies have been conducted to facilitate and improve the management of new service development (NSD). This research investigates the use of six sigma tools and techniques in service organizations and examines its effect on NSD performance. The results of the research illustrate that by using the six sigma methodology in new service development, firms can experience greater efficiency in their development processes with regards to improved financial results and higher customer satisfaction.
References
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TL;DR: In this paper, the authors consider the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning and examine some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space.
Abstract: This paper considers the relation between the exploration of new possibilities and the exploitation of old certainties in organizational learning. It examines some complications in allocating resources between the two, particularly those introduced by the distribution of costs and benefits across time and space, and the effects of ecological interaction. Two general situations involving the development and use of knowledge in organizations are modeled. The first is the case of mutual learning between members of an organization and an organizational code. The second is the case of learning and competitive advantage in competition for primacy. The paper develops an argument that adaptive processes, by refining exploitation more rapidly than exploration, are likely to become effective in the short run but self-destructive in the long run. The possibility that certain common organizational practices ameliorate that tendency is assessed.
16,377 citations
6,797 citations
TL;DR: In this paper, the authors organize the product development literature into three streams of research: product development as rational plan, communication web, and disciplined problem solving, and synthesize research findings into a model of factors affecting the success of product development.
Abstract: The literature on product development continues to grow. This research is varied and vibrant, yet large and fragmented. In this article we first organize the burgeoning product-development literature into three streams of research: product development as rational plan, communication web, and disciplined problem solving. Second, we synthesize research findings into a model of factors affecting the success of product development. This model highlights the distinction between process performance and product effectiveness and the importance of agents, including team members, project leaders, senior management, customers, and suppliers, whose behavior affects these outcomes. Third, we indicate potential paths for future research based on the concepts and links that are missing or not well defined in the model.
3,824 citations
"New service development: areas for ..." refers background in this paper
...…that a common set of factors—development process, market/environment, organizational and strategic—impact NPD performance (Schilling and Hill, 1998; Brown and Eisenhardt, 1995; Montoya-Weiss and Calantone, 1994) and NSD performance (de Brentani, 1995; Cooper et al., 1994; Cooper and de Brentani,…...
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...This challenge is particularly difficult given the diverse literature reporting NPD research (see Krishnan and Ulrich, 2001; Wind and Mahajan, 1997; Brown and Eisenhardt, 1995)....
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...The extant NPD research does not have all the answers to the questions of product or service development, but there is a foundation that can be drawn on (see integrative reviews by Krishnan and Ulrich, 2001; Schilling and Hill, 1998; Wind and Mahajan, 1997; Brown and Eisenhardt, 1995)....
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...Underlying the empirical work addressing the antecedents of development performance is the belief that a common set of factors—development process, market/environment, organizational and strategic—impact NPD performance (Schilling and Hill, 1998; Brown and Eisenhardt, 1995; Montoya-Weiss and Calantone, 1994) and NSD performance (de Brentani, 1995; Cooper et al....
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Journal Article•
TL;DR: Porter as discussed by the authors argues that the Internet is not disruptive to most existing industries and established companies and, contrary to recent thought, the Internet itself will be neutralized as a source of advantage.
Abstract: Many of the pioneers of Internet business, both dot-coms and established companies, have competed in ways that violate nearly every precept of good strategy. Rather than focus on profits, they have chased customers indiscriminately through discounting, channel incentives, and advertising. Rather than concentrate on delivering value that earns an attractive price from customers, they have pursued indirect revenues such as advertising and click-through fees. Rather than make trade-offs, they have rushed to offer every conceivable product or service. It did not have to be this way--and it does not have to be in the future. When it comes to reinforcing a distinctive strategy, Michael Porter argues, the Internet provides a better technological platform than previous generations of IT. Gaining competitive advantage does not require a radically new approach to business; it requires building on the proven principles of effective strategy. Porter argues that, contrary to recent thought, the Internet is not disruptive to most existing industries and established companies. It rarely nullifies important sources of competitive advantage in an industry; it often makes them even more valuable. And as all companies embrace Internet technology, the Internet itself will be neutralized as a source of advantage. Robust competitive advantages will arise instead from traditional strengths such as unique products, proprietary content, and distinctive physical activities. Internet technology may be able to fortify those advantages, but it is unlikely to supplant them. Porter debunks such Internet myths as first-mover advantage, the power of virtual companies, and the multiplying rewards of network effects. He disentangles the distorted signals from the marketplace, explains why the Internet complements rather than cannibalizes existing ways of doing business, and outlines strategic imperatives for dot-coms and traditional companies.
3,558 citations
"New service development: areas for ..." refers background in this paper
...The Internet dramatically reduces these barriers, as summarized in Table 3 ( Porter, 2001 )....
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...A differentiation strategy is difficult to attain in a service environment where innovations are quickly and easily copied ( Porter, 2001 )....
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Book•
01 Jan 1986TL;DR: Innovation is defined as "the development and implementation of new ideas by people who over time engage in transactions with others within an institutional order" as mentioned in this paper, where the authors focus on four basic factors new ideas, people, transactions, and institutional context.
Abstract: Innovation is defined as the development and implementation of new ideas by people who over time engage in transactions with others within an institutional order. This definition focuses on four basic factors new ideas, people, transactions, and institutional context. An understanding of how these factors are related leads to four basic problems confronting most general managers: 1 a human problem of managing attention, 2 a process problem in managing new ideas into good currency, 3 a structural problem of managing part-whole relationships, and 4 a strategic problem of institutional leadership. This paper discusses these four basic problems and concludes by suggesting how they fit together into an overall framework to guide longitudinal study of the management of innovation.
3,513 citations
"New service development: areas for ..." refers background in this paper
...Focusing on NPD, Van de Ven (1986) notes four problems related to the management of development and innovation efforts....
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...Focusing on NPD, Van de Ven (1986) notes four problems related to the management of development and innovation efforts....
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