Abstract
Different frameworks for New Service Development (NSD) practices have been suggested by prior conceptual research. We have assessed three frameworks frequently referred to in extant research, and exposed how these three cover different dimensions of NSD practices. By exploring the practices of NSD empirically, this paper continues the ongoing discussion of what the relevant aggregated dimensions of NSD practices are. The detailed practices identified by interviewing 25 employees, all with key roles in relation to NSD in five large Scandinavian service firms, about their NSD practices, are clustered into three aggregated overarching dimensions of NSD practices: 1) identifying needs, 2) assuring support and 3) dividing work. The findings suggest that the NSD process is the prime focus of NSD practices and that different resources are integral parts. The findings provide both managerial implications and implications for further research.
Highlights
The potential role of New Service Development (NSD) in creating financial performance and competitive advantage for both service and manufacturing firms is increasingly acknowledged (e.g., Aas and Pedersen, 2011)
The findings suggest that the NSD process is the prime focus of NSD practices and that different resources are integrated into the different stages of the NSD process
The attempts to develop similar frameworks of the key dimensions of NSD practices are limited, and since the few frameworks suggested in the literature are predominantly based on conceptual discussions (e.g., Froehle and Roth, 2007; den Hertog et al, 2010), we argue that more empirical research is needed to confirm, or alternatively disprove, the NSD practices frameworks suggested by prior conceptual research
Summary
The potential role of New Service Development (NSD) in creating financial performance and competitive advantage for both service and manufacturing firms is increasingly acknowledged (e.g., Aas and Pedersen, 2011). At the same time frameworks of successful NSD practices remain scarce (e.g., den Hertog et al, 2010). The empirical innovation management literature has focused primarily on New Product Development (NPD) when exploring the practices that firms’ undertake when they innovate successfully (Kahn et al, 2006). Due to the differences between services and products and between service innovation and product innovation (Droege et al, 2009), there is, no guarantee that the frameworks developed for NPD are relevant for NSD. From a managerial perspective this gap in the literature is concerning. Managers need to implement efficient practices to succeed with innovation, and due to the lack of frameworks of NSD practices, and lack of corresponding normative guidance, this is a difficult and hazardous task for managers pursuing a business strategy reliant upon NSD
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