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 paper, the authors describe a development methodology for product-service systems where the characteristics of material and service components can be systematically derived on the basis of criteria resulting from customer requirements.
Abstract: This article describes a development methodology for product-service systems where the characteristics of material and service components can be systematically derived on the basis of criteria resulting from customer requirements. Typical for this development process is the fact that the fulfilment of the characteristics required by the customer is not linked from the first to material or service components. This takes place during the development process of the product-service system. The approach introduced here, exemplified by the heating, air conditioning and sanitary engineering branch, adequately integrates existing approaches for product development and service engineering.
28 citations
Cites background from "New service development: areas for ..."
..., 2003) has however, only established itself since the mid-1990s – parallel to the American new service development (Cooper and Edgett, 1999; Edvardsson and Olsson, 1996; Fitzsimmons and Fitzsimmons, 2000; Menor et al., 2002; Ramaswamy, 1996; Scheuing and Johnson, 1989; Shulver, 2005; Stevens and Dimitriadis, 2005; Syson and Perks, 2004)....
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TL;DR: In this article, the authors examined how ambidextrous innovation (exploration and exploitation innovation) and market orientation capabilities (market-sensing and customer-linking capabilities) can shape the relationship between service innovation and firm performance.
Abstract: Purpose
How in essence a firm’s service innovation affects its performance is always an intriguing and important issue to business researchers and practitioners. However little is known about the moderating effects of a firm’s approach to innovation and capability of marketing orientation that influence this aforementioned relationship and the underlying mechanisms. This paper aims to examine how ambidextrous innovation (exploration and exploitation innovation) and market orientation capabilities (market-sensing and customer-linking capabilities) can shape the relationship between service innovation and firm performance. Research model was developed based on theoretical foundation of the resource-based view and the rationed perspective.
Design/methodology/approach
Using an original data set comprising 170 service-oriented firms from Taiwan, the authors found that ambidextrous innovation and market orientation capabilities can significantly enhance performance for service-oriented firms. The authors used the traditional ordinary least squares regression and the zero-inflated Poisson regression to test the five hypotheses.
Findings
The empirical results fully support the hypotheses that ambidextrous innovation and market orientation capabilities can significantly enhance firm performance. These results imply that the benefits of ambidextrous innovation and market orientation capabilities can coexist in a service innovation deployment and that these combined benefit firm performance.
Originality/value
The ambidextrous innovation and market orientation capabilities play catalytic roles during innovative service implementation in the service-oriented sectors. The roles of these factors have rarely been examined together before. Hence, this study addresses the gaps in current understanding and provides valuable insights, particularly in the context of the future service innovation deployment. In addition, the theoretical and managerial implications of the findings provide useful and valuable information for both the researchers and managers of the service-oriented.
28 citations
TL;DR: In this article, the authors investigated the mediating and moderating effect of corporate reputation between service innovation and cross-buying intention in telecommunication service settings, and found that corporate reputation explained the relationship between the two factors.
Abstract: The study has been undertaken with following aims; first, to establish the plausibility of a positive relationship between service innovation and corporate reputation and their effect together on cross-buying intention of customers of telecommunication industry in India. Second, empirically examine the mediating and moderating effect of corporate reputation between service innovation and cross-buying intention. The descriptive approach was applied and tested by adopting a survey method where the sample units comprised of customers from various telecommunication service providers. Convenience sampling method was used based on which 256 customers of major service providers in southern part of India were approached for their opinion on the constructs. Smart—partial least square (hereinafter PLS) software tool was used to test the conceptual framework. On analyzing the result, it was observed that corporate reputation explained the relationship between service innovation and cross-buying intention; further corporate reputation also strengthens the effect of service innovation on cross-buying intention. The survey results indicate that decision makers/managers of telecommunication service firms need to understand that building reputation is one of the key aspects that would strengthen their initiatives of bringing service innovation frequently, as well as make their customers to cross-buy other services. The study fills the gap by analyzing the combined effect of service innovation and corporate reputation and cross-buying intention. Further, the study estimates the mediating and the moderating effect of corporate reputation between service innovation and cross-buying intention in telecommunication service settings which was not attempted earlier.
28 citations
TL;DR: In this paper, the authors investigate external and internal loss categories and their relationship to the loss response; specifically, reactions to loss in the form of ex post loss control via new service design (NSD).
Abstract: Purpose – The understanding of operational failure (or loss generally) and its role as an imperative for service design is underdeveloped. This paper investigates external and internal loss categories (such as market failure, and unexploited resource development) and their relationship to the loss response; specifically, reactions to loss in the form of ex post loss control via new service design (NSD).Design/methodology/approach – The investigation consists of complimentary theoretical and empirical dimensions and includes the analysis of five service design cases. This analysis deploys a model based upon the extant service design and innovation, resource‐based view and operational risk literatures.Findings – The findings question the universal applicability of extant normative and descriptive models of service design. After arguing that their use should be limited to specific contexts, the paper proposes a new, more general conception of service design modes.Originality/value – The paper comments on pat...
27 citations
TL;DR: In this paper, the authors provide a conceptual framework for the development of total quality management (TQM) model for service organizations considering both internal and external environmental factors, and present a framework of integrated relationships based on several constituent models.
Abstract: The purpose of this paper is to provide a conceptual framework for the development of total quality management (TQM) model for service organizations considering both internal and external environmental factors.,Through an extensive literature search, it is found that despite a large body of knowledge on TQM, there is hardly any research undertaken on the model of service quality including all external and internal factors that can affect the impact of soft and hard TQM factors on organizations performance. So, a systematic literature review has been conducted to extract the relevant journal articles for the study purpose.,The conceptual model fills this yawning gap and presents a framework of integrated relationships based on several constituent models. These are soft TQM factors, hard TQM factors and organizational performance. Moreover, quality improvement, market benefits, R&D performance and quality performance are used as mediators while industry rivalry and entry barriers are used as moderators between soft and hard TQM and organizational performance. The seven propositions, derived from these elements, highlight the dynamic relationship between above mentioned constructs.,One major limitation is the testing of this model. It has not been tested in any environment or organization to assess its validity. Future research can be done to test the developed hypotheses. Besides three journals, other journals can also be focused in future to get detailed insight into different factors. Impact of IT on organizational processes toward TQM can also be studied in future. More rigorous statistical tests can also be applied to generate more findings with an extension of review time period and selection of more journals.,The model developed in this study can be applied in any service organization with slight modifications to enhance the service quality of organizations by integrating both internal and external aspects for quality improvement. By adopting this framework, organizations can increase their production quality.,This proposed framework will help organizations to effectively implement TQM in their organizations considering internal and external organizational factors.
26 citations
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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