Abstract

Customer interaction has a positive impact on new service development of firms. Nowadays, in the networked economies and societies, the importance of social capital as related to new service development performance is also becoming prominent. However, the existing literature does not reveal much about the relationships among the three variables. Based on customer cooperation innovation theory and new service development theory, this paper tested hypotheses by using the empirical data of 219 knowledge intensive business service firms in the Pearl River Delta of China. The study finds that customer interaction has a distinct positive impact on new service development performance; and social capital has a distinct positive impact on new service development performance. Furthermore, social capital plays a regulatory role in the relationship between customer interaction and new service development performance. By exploring the issues above, the paper will enrich research in the area of service science, especially new service development in China. Meanwhile, our findings will help managers to improve new service development performance by utilizing customer interaction and social capital.

Highlights

  • Since the concept of open innovation is proposed, more and more attention has been paid to customer cooperation innovation in the field of innovation research [1]

  • The study finds that customer interaction has a distinct positive impact on new service development performance; and social capital has a distinct positive impact on new service development performance

  • Social capital plays a regulatory role in the relationship between customer interaction and new service development performance

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Summary

Introduction

Since the concept of open innovation is proposed, more and more attention has been paid to customer cooperation innovation in the field of innovation research [1]. The impact of customer interaction on new service development performance has become focus of research in the field of customer coopera-. How the impact from external key resources reflects to facilitation of customer interaction on new service development performance is still very limited. To explore the regulatory role of social capital in the relationship between customer interaction and new service development performance is to further promote and deepen the research on customer cooperation innovation and new service development performance. Further analysis shows that the relationship among customer interaction, social capital and new service development performance has not yet been fully explored. Whether and how social capital plays a role in the relationship between customer interaction and new service development performance is an important issue, which needs to be studied and discussed in this paper. We conclude the paper with theoretical implications, practical significance and limitation

Theoretical Basis and Research Hypothesis
Relationship between Social Capital and New Service Development Performance
Sample Selection and Data Collection
Variable Measure
Analysis on Reliability and Validity
Overall Model Test Analysis
Discussion
Findings
Limitation
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