OverviewThe purpose of this article is to provide a review and ready reference to recent writings on new service development (NSD). The article is aimed at students of NSD, that is to say, academics and practising managers, searching for new insights into how NSD can support organic business growth.The decision to concentrate exclusively on organic development rather than on acquisition or joint venture development is deliberate. As will be shown in the review of the literature, new service development relies on the expertise and cooperation of individuals working in teams during and after development. Acquisition and joint venture development introduces additional risks arising from the possibility of key personnel leaving or failing to cooperate. These special risks are worthy of study in their own right after the elements of organic service development have been mastered.The field of organic product development, embracing as it does the development of tangible, as well as service products, is undergoing a revolution. NSD and its generic equivalent of new product development (NPD) is increasingly seen by managers as embracing more than the improvement of core performance attributes. Attention is now focused by forward-looking managers on the whole offer, of which the core performance attributes are only a part. Doing this requires a far wider set of commercial variables to be considered in new service and new product development than has traditionally been the case.Our review of the literature builds on recent insights provided by researchers. We provide an expanded definition of NSD. The available literature is reviewed within this wider analytic framework and suggestions are made for future research. Definitions are an ever-present problem in any fast-changing area of endeavour. The words "new service development" and "new product development" are often used interchangeably. To help the reader who may be unfamiliar with certain current definitions, we provide some initial definitions here. More specialist definitions are introduced later.

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This paper reports the results of a study into leadership of new service development projects in consumer banking. A sample of UK businesses embracing both new entrants and mature incumbent players was studied. The results highlight considerable similarity in the project``microclimate'' for successful projects. It is argued that a microclimate is created by appropriate leadership practices and styles. The paper highlights lessons in the organisation of innovation and the contributions of different types of leaders.

This article reviews three types of innovation which contribute to organic business development: product innovation, process innovation and market innovation. It argues that market innovation ‐ defined as improving the mix of target markets and how these are served ‐ provides a powerful focus for identifying new business opportunities. Examples from the field of financial services illustrate how skilful market innovation can serve to grow a business as well as to safeguard it from attacks by competitors.