New service development: areas for exploitation and exploration

doi:10.1016/S0272-6963(01)00091-2

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New service development: areas for exploitation and exploration

Journal Article•DOI•

New service development: areas for exploitation and exploration

Larry J. Menor¹, Mohan V. Tatikonda², Scott E. Sampson³•Institutions (3)

University of Western Ontario¹, Indiana University², Brigham Young University³

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.

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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.

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Journal Article•DOI•

Customer Orientation, Learning Orientation, and New Service Development An Empirical Investigation of the Swiss Hotel Industry

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Kayhan Tajeddini

13 Jan 2011-Journal of Hospitality & Tourism Research

TL;DR: In this article, the role of customer orientation and learning orientation on a firm's performance in small, medium, and large enterprises has been investigated, however, the literature provides little empirical evidence about the role and influence of these variables on new service development and subsequent effect on performance.

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Abstract: Although many studies have investigated the role of customer orientation and learning orientation on a firm's performance in small, medium, and large enterprises, the literature provides little empirical evidence about the role of customer orientation and learning orientation within the hotel industry. This current work investigates the influence of these variables on new service development and their subsequent effect on performance (financial and perceptual). Also, the impact of participating managers' positive attitude toward change on new service development has been examined. Using data from hotel managers and owners located in Switzerland, several hypotheses have been formulated and tested. The findings not only verify aspects of prior research but also provide a new insight by exploring customer orientation, learning orientation, and new service development simultaneously, revealing how these factors affect the performance of the Swiss hotel industry. Although support for some hypotheses was found, these results need to be evaluated in light of the limitations, which moderate the contribution and also provide areas for further research. (Less)

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108 citations

Journal Article•DOI•

Achieving customer satisfaction through integrated products and services: : An exploratory Study

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Jawwad Raja, Dorota Bourne, Keith Goffin¹, Mehmet Cakkol¹, Veronica Martinez¹ - Show less +1 more•Institutions (1)

Cranfield University¹

01 Nov 2013-Journal of Product Innovation Management

TL;DR: In this article, an exploratory study was undertaken to understand customers' views on integrated products and services and the value-in-use derived from such offerings, using a technique from psychology to gather data in 33 interviews.

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105 citations

Journal Article•DOI•

Combining Service Blueprint and FMEA for Service Design

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Pao-Tiao Chuang

09 Mar 2007-Service Industries Journal

TL;DR: In this paper, the authors combine the service blueprint and Failure Modes and Effects Analysis (FMEA) to assist service designers in designing a failure-free service system, where the FMEA tool is applied to prioritise the critical potential failure modes of the service system and take the required actions to ensure service design performance.

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Abstract: This paper aims at combining the service blueprint and Failure Modes and Effects Analysis (FMEA) to assist service designers in designing a failure-free service system. In the proposed approach, a blueprint of a service system should be, first, developed to identify the potential fail points and failure modes for both front office and back office service activities. Based on the blueprint, the FMEA tool is then applied to prioritise the critical potential failure modes of the service system and take the required actions to ensure service design performance. An example of a hypermarket service system was used to demonstrate the proposed approach. The example not only identifies the most likely failure modes but also provides the effects and possible causes for each of the most critical failure modes. This implies that the actions to prevent these failures from occurring should be the main focus in the service design stage of the example company. Some managerial implications are also provided.

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102 citations

Cites background from "New service development: areas for ..."

...By all accounts, more than half of developed countries’ GDP is in the service sector [Menor et al., 2002: 135; Pilat, 2000: 52]....
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Journal Article•DOI•

Frontline employees’ collaboration in industrial service innovation: routes of co-creation’s effects on new service performance

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María Leticia Santos-Vijande¹, José Ángel López-Sánchez², John M. Rudd³•Institutions (3)

University of Oviedo¹, University of Extremadura², Aston University³

01 May 2016-Journal of the Academy of Marketing Science

TL;DR: In this paper, the authors examined how the collaboration with FLEs along the new service development (NSD) process, namely FLE co-creation, impacts on service innovation performance following two routes of different effects.

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Abstract: From a Service-Dominant Logic (S-DL) perspective, employees constitute operant resources that firms can draw to enhance the outcomes of innovation efforts. While research acknowledges that frontline employees (FLEs) constitute, through service encounters, a key interface for the transfer of valuable external knowledge into the firm, the range of potential benefits derived from FLE-driven innovation deserves more investigation. Using a sample of knowledge intensive business services firms (KIBS), this study examines how the collaboration with FLEs along the new service development (NSD) process, namely FLE co-creation, impacts on service innovation performance following two routes of different effects. Partial least squares structural equation modeling (PLS-SEM) results indicate that FLE co-creation benefits the NS success among FLEs and firm’s customers, the constituents of the resources route. FLE co-creation also has a positive effect on the NSD speed, which in turn enhances the NS quality. NSD speed and NS quality integrate the operational route, which proves to be the most effective path to impact the NS market performance. Accordingly, KIBS managers must value their FLEs as essential partners to achieve successful innovation from an internal and external perspective, and develop the appropriate mechanisms to guarantee their effective involvement along the NSD process.

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101 citations

Cites background or methods or result from "New service development: areas for ..."

...viewpoint, analyzing the extent to which the NS delivers superior customer value and the NS provision process minimizes failures and is performed in a superior way than competitors (Carbonell et al. 2009; Menor et al. 2002)....
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...successfully carry out the NSDP in an agile and fast way) (Carbonell et al. 2009; Menor et al. 2002)....
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...…NS on or ahead of schedule), time efficiency (doing the project faster than other competing alternatives), and time compared to what was considered customary for the industry (i.e., the ability to successfully carry out the NSDP in an agile and fast way) (Carbonell et al. 2009; Menor et al. 2002)....
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...robust and comprehensive models for investigating the effects of employee-driven service innovation (Kesting and Ulhøi 2010; Melton and Hartline 2013; Menor et al. 2002)....
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...Second, this study answers calls in the literature for more robust and comprehensive models for investigating the effects of employee-driven service innovation (Kesting and Ulhøi 2010; Melton and Hartline 2013; Menor et al. 2002)....
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Journal Article•DOI•

Multi‐dimensional nature of service innovation: Operationalisation of the elevated service offerings construct in collaborative service organisations

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Renu Agarwal¹, Willem Selen•Institutions (1)

University of Technology, Sydney¹

18 Oct 2011-International Journal of Operations & Production Management

TL;DR: In this paper, the authors present and operationalise the concept of "elevated service offerings" (ESO), which stands for new or enhanced service offerings which can only be eventuated as a result of partnering, and which could not be delivered on individual organisational merit.

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Abstract: Purpose – Innovation in services is thought to be multi‐dimensional in nature, and in this context the purpose of this paper is to present and operationalise the concept of “elevated service offerings” (ESO) in collaborating service organisations. ESO stands for new or enhanced service offerings which can only be eventuated as a result of partnering, and which could not be delivered on individual organisational merit. ESO helps us expand our understanding of service innovation to include a service network or service system's dimension.Design/methodology/approach – A structural equation model is specified and estimated based on constructs and relationships grounded in the literature, as well as self‐developed constructs, using empirical data from 449 respondents in an Australian telecommunications service provider (SP) and its partnering organisations.Findings – Results show that ESO is a multi‐dimensional construct which was operationalised and validated through an extensive literature review, exploratory...

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99 citations

Cites background from "New service development: areas for ..."

...In our context of partnering organisations, previous alliance literature and innovation literature has demonstrated that innovation in services is possible in several dimensions through increased productivity, improvement in performance, and new service offerings ( Johne and Storey, 1998; Menor et al., 2002; Van Der Aa and Elfring, 2002; Tidd et al., 2005; den Hertog, 2000; DTI, 2007; Kandampully, 2002)....
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References

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Open Access

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Journal Article•DOI•

Exploration and Exploitation in Organizational Learning

[...]

James G. March¹•Institutions (1)

Stanford University¹

01 Feb 1991-Organization Science

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.

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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.

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16,377 citations

Journal Article•DOI•

Architectural Innovation: The Reconfiguration of Existing Product Technologies and The Failure of Established Firms

[...]

Rebecca Henderson, Kim B. Clark

01 Mar 1990-Administrative Science Quarterly

6,797 citations

Journal Article•DOI•

Product development: past research, present findings, and future directions

[...]

Shona L. Brown¹, Kathleen M. Eisenhardt¹•Institutions (1)

Stanford University¹

01 Apr 1995-Academy of Management Review

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.

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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.

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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)....
[...]
...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•

Strategy and the Internet.

[...]

Michael E. Porter¹•Institutions (1)

Harvard University¹

01 Mar 2001-Harvard Business Review

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.

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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.

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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•

Central problems in the management of innovation

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Andrew H. Van de Ven¹•Institutions (1)

University of Minnesota¹

01 Jan 1986

TL;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.

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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.

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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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