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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Citations

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Journal Article•DOI•

Co-creation with clients of hotel services: the moderating role of top management support

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María Leticia Santos-Vijande¹, José Ángel López-Sánchez², Primitiva Pascual-Fernández¹•Institutions (2)

University of Oviedo¹, University of Extremadura²

11 Feb 2018-Current Issues in Tourism

TL;DR: In this paper, the authors examined the effects of new service co-creation with customers in the hotel industry on NS performance, as well as the moderating role of top management support, and explored the main barriers faced by hotels to co-create service innovations.

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Abstract: Hotels can strengthen their competitiveness by expanding their innovation process beyond the boundaries of the firm to exploit the valuable knowledge and skills of their customers. This study examines the effects of new service (NS) co-creation with customers in the hotel industry on NS performance, as well as the moderating role of top management support. The research also explores the main barriers faced by hotels to co-create service innovations. Partial least squares structural equation modelling results indicate that Customer co-creation exerts a direct impact on NS market outcomes and NS development (NSD) speed, which in turn favours NS quality. NS quality translates into better NS customer-related outcomes as well as in improved NS market outcomes. Top management support enhances the effect of Customer co-creation on the NSD speed. The main barrier to NS co-creation in hotels is to find customers interested in devoting time to this activity or with the appropriate knowledge and experience.

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51 citations

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

...…et al., 2010) and it is measured from a technical and functional viewpoint, analysing the extent to which the NS delivers superior customer value, and the NS provision process minimizes failures and it is performed in a superior way than competitors (Carbonell et al., 2009; Menor et al., 2002)....
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Book Chapter•DOI•

Foresight and Service Design Boosting Dynamic Capabilities in Service Innovation

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Katri Ojasalo¹, Minna Koskelo¹, Anu K. Nousiainen¹•Institutions (1)

Laurea University of Applied Sciences¹

01 Jan 2015

TL;DR: In this paper, a conceptual framework for service innovation process that is grounded on foresight and service design is presented, based on a large body of literature from four burgeoning fields of study: dynamic capabilities, service innovation, foresight, and design.

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Abstract: Identifying opportunities for service innovation and exploiting them requires novel capability building in the rapidly changing business environments. This study extends the existing literature on dynamic capabilities in service innovation by operationalizing the capabilities of sensing and seizing new opportunities. The purpose of this chapter is to examine how futures thinking and design thinking can facilitate service innovation from the dynamic capabilities point-of-view. As a result this chapter provides a conceptual framework for service innovation process that is grounded on foresight and service design. To synthesize the literature into a new conceptual framework, this chapter is based on a large body of literature from four burgeoning fields of study: dynamic capabilities, service innovation, foresight, and service design. The key point the chapter wishes to make is that a forward look at new methodological perspectives in service innovation is needed and that integrating the methods and tools of foresight and service design to the service innovation process provides a promising new avenue to future success.

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51 citations

Additional excerpts

...In the literature, particularly in the emergence of the field, the terms “service innovation” and “service development” have been used interchangeably (Menor et al. 2002)....
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Journal Article•DOI•

Measuring the impact of soft and hard quality practices on service innovation and organisational performance

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Bilal Ahmad Khan¹, Hummayoun Naeem¹•Institutions (1)

Shaheed Zulfiqar Ali Bhutto Institute of Science and Technology¹

19 Sep 2018-Total Quality Management & Business Excellence

TL;DR: In this article, the authors examined the relationships among quality practices, service innovation and organisational performance of telecommunication operators in Pakistan, and a conceptual framework was formulated to test and establish these relationships.

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Abstract: This study aims to examine the relationships among quality practices, service innovation and organisational performance of telecommunication operators in Pakistan. Quality practices were divided into soft and hard quality practices. Initially, the impact of soft quality practices on hard quality practices was studied; then the impact of each of these quality practices on service innovation and organisational performance was examined. The study tests if hard quality practices mediate the impact of soft quality practices on service innovation and organisational performance. Mediating impact of service innovation among quality practices and organisational performance relationship was also tested. A conceptual framework was formulated in order to test and establish these relationships. A questionnaire survey was conducted on the target population and data collected from 318 respondents were used to empirically examine the framework through structural equation modelling technique. The results of the study show...

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51 citations

Journal Article•DOI•

The advent of customer experiential knowledge management approach (CEKM): The integration of offline & online experiential knowledge

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Dhouha Jaziri¹•Institutions (1)

University of Sousse¹

01 Jan 2019-Journal of Business Research

TL;DR: A strategic model of CEKM, that integrates the customer experience processed through the knowledge management, is proposed, and a conceptual analysis ascertains that the customer knowledge plays a key role in the implementation of an experiential innovation.

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50 citations

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

...In the case of NSD, Menora et al. (2002) represent respectively, the development activities of service concept (as strategic positioning, idea generation, and concept development/refinement) and the implementation of the early developed service concept through novelty brought to internal elements of the service process (as information and communication technologies, physical facilities, … Menora et al., 2002)....
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...In the case of NSD, Menora et al. (2002) represent respectively, the development activities of service concept (as strategic positioning, idea generation, and concept development/refinement) and the implementation of the early developed service concept through novelty brought to internal elements of the service process (as information and communication technologies, physical facilities, ....
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Journal Article•DOI•

The role of openness in the fuzzy front-end of service innovation

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Bundit Thanasopon¹, Thanos Papadopoulos², Richard Vidgen³•Institutions (3)

King Mongkut's Institute of Technology Ladkrabang¹, University of Sussex², University of Hull³

01 Jan 2016-Technovation

TL;DR: In this article, the authors investigate the impact of openness competence on front-end uncertainty reduction and service innovation success and find that openness competence positively influences both the degree of uncertainty being reduced and the overall success of service innovations.

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50 citations

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References

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Open Access

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Journal Article•DOI•

Exploration and Exploitation in Organizational Learning

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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

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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

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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)....
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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•

Strategy and the Internet.

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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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