The development and validity of new service development scale: using a balanced scorecard approach

Abstract

New Service Development (NSD) management has emerged as an important topic for service managers and researchers. In achieving long-term NSD success, it is vital that a firm have effective mechanisms for assessing success. This paper, focusing on the performance at programme level, aims to develop a measurement scale for NSD performance within balanced scorecard framework which includes financial performance, customer performance, internal performance, and learning and growth performance. We conduct a scale analysis using survey data collected from a sample of key informants in knowledge-intensive business services and confirm the reliability and validity of the proposed four multi-item scales. The NSD performance scales developed in this research may be used to advance scholarly understanding theory in NSD. Further, these NSD scales may provide a useful diagnostic and benchmarking tool for managers seeking to assess and/or improve their firm's service innovation expertise.