Sectoral Heterogeneity in New Service Development: An Exploratory Study of Service Types and Success Factors

Journal of Product Innovation Management, Vol. 30, Issue 3, pp. 533-544, 2013

Posted: 11 Oct 2014 Last revised: 7 Apr 2016

See all articles by Sabine Kuester

Sabine Kuester

University of Mannheim, Department of Marketing & Innovation

Monika Schuhmacher

Justus-Liebig-University Gießen, Department of Technology, Innovation, and Start-up Management

Barbara Broermann

University of Mannheim

Andreas Worgul

University of Mannheim - School of Business Administration (BWL)

Date Written: May 1, 2013

Abstract

The service industry is of fundamental relevance for the economies of industrialized countries, as the service industry produces the highest growth in the gross domestic product. In this regard, new service development (NSD) represents a critical resource for competitive survival and a decisive factor of growth in the service industry. However, service firms across many industries are increasingly faced with the challenge of determining how best to manage their development of new service offerings. Although researchers have shown growing interest in NSD issues, this area is still underutilized. Furthermore, although the heterogeneity of the service industry has been emphasized for years, the current body of research on NSD mainly focuses on specific service environments, providing data that are often not comparable across different service sectors. Additionally, there is no study to date that comprehensively examines innovation activities and the relevance of service innovations’ success factors within different service industries. The aim of this exploratory study is to establish a more balanced picture of the nature of innovation activities in terms of NSD characteristics and success factors in the heterogeneous service industry. From this perspective, this paper begins with an examination of the factors that contribute to the success of NSD. Based on a meta-analysis of new service success factor studies, 17 different success determinants are classified and aggregated to service-related success determinants. Subsequently, a cluster analysis of 1016 service companies is used to identify different service innovation types. For the service sector, four service innovation types are determined: efficient developers, innovative developers, interactive adopters, and standardized adopters. Furthermore, based on interviews with service innovation managers,the previously identified success factors are examined for each innovation type using a standardized survey. Finally, based on the results of this exploratory study, the paper concludes with recommendations for NSD management and research propositions for each service innovation type. These propositions support innovation managers to successfully manage service innovations for the innovation type they are operating in.

Keywords: Service industries, new product development

JEL Classification: M31

Suggested Citation

Kuester, Sabine and Schuhmacher, Monika and Broermann, Barbara and Worgul, Andreas, Sectoral Heterogeneity in New Service Development: An Exploratory Study of Service Types and Success Factors (May 1, 2013). Journal of Product Innovation Management, Vol. 30, Issue 3, pp. 533-544, 2013, Available at SSRN: https://ssrn.com/abstract=2504518

Sabine Kuester (Contact Author)

University of Mannheim, Department of Marketing & Innovation ( email )

Germany

Monika Schuhmacher

Justus-Liebig-University Gießen, Department of Technology, Innovation, and Start-up Management ( email )

Licher Str. 62
Gießen, 35394
Germany

Barbara Broermann

University of Mannheim ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

Andreas Worgul

University of Mannheim - School of Business Administration (BWL) ( email )

40, Boulevard du Pont-d'Arve
Case Postale 3
1211 Geneva
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
339
PlumX Metrics