An exploration into new service development : process, structure and organization

Abstract

The study had four goals. First, to understand the nature of the process; second, the organization; and third, the structure of new service development. Finally, the research sought to uncover potential influences on new service performance. Data was collected from a mailed survey sent to insurance and banking companies, and hospitals. Results indicated that respondents used a relatively unstructured process to develop new services. Ad hoc and new product committees were the favored means of organizing for new service development. The structure of new service development tended to be formalized, centralized and complex. The most important determinants of new service performance identified from the data were the extent to which a company used a systematic and strategic process to develop new services, and the degree of certainty found in the environment. Recommendations for practitioners and implications for future research are included.