The relative impact of culture, strategic orientation and capability on new service development performance

Abstract

Purpose – This research attempts to understand the operant resources required for new service development (NSD). It aims to construct a more intricate understanding of how operant resources interact to drive NSD. Specifically, it aims to look at the impact of culture, strategic orientation and NSD capability for number of new services, the success rate of new services and the resulting financial contribution by NSD to overall firm performance.Design/methodology/approach – To investigate these relationships, data were collected from 105 leading UK‐based service firms via a key informant survey. Regression analysis was employed to test the model presented.Findings – Analysis reveals that a different culture (entrepreneurial culture) is needed to drive the number of new services from that required for a higher success rate (learning culture). A NSD capability has an important role supporting both of these aspects of NSD performance. The quantity and quality of NSD go on to affect the financial contribution m...