Drawing from the new product development (NPD) literature, service quality literature (SERVQUAL), and empirically grounded research with 53 service innovation decision makers, we develop a staged service innovation model (SIM) for decision makers. We tested the model using empirical data from 329 firms across five industries. The empirical results show that integrating prelaunch service quality training into new service development process leads to successful service innovation. The model developed in this article can be used as a decision support tool and diagnostic model for assessing service innovation ideas, evaluating performance of ongoing service innovations, allocating resources, and improving success rate of service innovations. Decision makers can use the measures developed in this study as a checklist to identify their strengths in delivering service quality to their own customers as well as areas of improvement. This article extends service innovation research by combining NPD and service quality development into a single study and opens the door to further work that could help improve the success rate of service innovations. The model can serve as a base model for future research extensions in service innovation research. A major takeaway for the academic reader is that the SIM demonstrates the value of using the SERVQUAL literature to understand how best to provide excellent quality that results in more fully satisfied customers and, ultimately, improved service performance.
a b s t r a c tSuccessfully launching its first product is critical to a new venture's continued success, yet the new venture has relatively few financial or human resources to support its marketing or R&D activities. It is thus important for the new venture to attract funding from external investors such as suppliers. Although the operations management (OM) literature addresses product development and supplier involvement in large firms, few studies have examined the relationship between suppliers and new ventures. This study examines how new ventures can complement their resources and experience with supplier investment, to build positional advantages for their first product and increase marketplace performance. We integrate the OM and entrepreneurship literatures to develop a model based on the resource-based view of the firm, in which the new venture uses external and internal resources to achieve positional advantages of product innovativeness, supplier involvement in production, and product launch quality. We also investigate how market potential moderates the relationship between positional advantages and performance. We empirically test our model using data from 711 new ventures.We find that it is beneficial for a new venture to involve suppliers in production of the first product, and that market potential positively moderates the relationship of product launch quality and performance. However, the results reported here also reveal several surprising results challenging traditional views. Developing a highly innovative first product is much less, not more, important than achieving a high quality first-product launch. Increasing product innovativeness does not necessarily lead to high product performance for new ventures. For a small market with low growth potential, product innovativeness has a negative, not positive, effect on first product performance. We discuss managerial implications of our findings.
Proposes that firms of different Miles and Snow strategic types will have different bundles of firm-level capabilities; that is, certain capabilities will be more important to certain strategic types. Specifically, proposes that prospectors have greater relative inside-out capabilities and information technology capabilities, while defenders have greater relative outside-in capabilities and marketing capabilities. Empirically tests, and finds support for, the propositions using a data set of 245 Chinese firms, comprised mostly of state-owned enterprises. Understanding the Chinese business environment is of importance to businesses around the world as the Chinese economy undergoes rapid expansion and decentralization of strategic decision making to the level of the state-owned enterprise. As the central government takes on a lesser role in the management of enterprises, and Chinese enterprise managers become more responsible for their own strategic decision making, a clear understanding of the enterprise's specific capabilities and advantages is required in order to achieve sustained competitive advantage. Concludes by discussing managerial implications.
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