Understanding new service development and service innovation through innovation modes

Purpose – The purpose of this paper is to explore the role of innovation modes in understanding challenges of integrated NSD and NPD, and the use of structured NSD processes in manufacturing firms. Design/methodology/approach – The research is based on a two-stage multiple case study. The first stage is an interview study of 17 key informants representing manufacturing firms in the machine industry. The second stage is an in-depth study of three service innovations at three manufacturing firms based on 16 interviews with key informants. Findings – The results of the study show that NSD processes are often more structured if the service is developed separately from the product. The fact that different innovation modes benefit from varying degrees of structure in the development process means that integrated service development can be challenging. Furthermore, service innovations often follow a trajectory of innovation modes before succeeding in the market. Some innovation modes occur within the NSD process, while others occur outside the process. One success factor for NSD is the fit between the innovation modes and the NSD process, rather than the NSD process per se. Originality/value – This research uses innovation modes to explain why NSD in manufacturing firms is often performed on an ad hoc basis, and how service innovations go through a trajectory of innovation modes. In this way, the study contributes to theory development of service innovation, and specifically service innovations in manufacturing firms.

[1]  Lance A. Bettencourt,et al.  From goods to great: Service innovation in a product-dominant firm , 2013 .

[2]  A. Gustafsson,et al.  Any way goes : Identifying value constellations for service infusion in SMEs , 2013 .

[3]  A. Gustafsson,et al.  Customer co‐creation in service innovation: a matter of communication? , 2012 .

[4]  Staffan Brege,et al.  Service Infusion as Agile Incrementalism in Action , 2012 .

[5]  Ian Miles,et al.  Service innovation in manufacturing firms: Evidence from Spain , 2012 .

[6]  Lars Witell,et al.  Service transition: finding the right position on the goods-to-services continuum , 2012 .

[7]  E. Peña.  Book Review: Harbour, W. S., & Madaus, J. W. (Eds.) (2011). Disability services and campus dynamics. San Francisco: Jossey Bass , 2012 .

[8]  A. Gustafsson,et al.  Competitive advantage through service differentiation by manufacturing companies , 2011 .

[9]  W. Reinartz,et al.  Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully , 2011 .

[10]  Janet R. McColl-Kennedy,et al.  Towards a model of dynamic capabilities in innovation-based competitive strategy : insights from project-oriented service firms , 2011 .

[11]  Yen Hsu,et al.  Design innovation and marketing strategy in successful product competition , 2011 .

[12]  Daniel Kindström,et al.  Managing industrial service offerings in global business markets , 2011 .

[13]  B. Edvardsson,et al.  Match or Mismatch: Strategy-Structure Configurations in the Service Business of Manufacturing Companies , 2010 .

[14]  Mary Jo Bitner,et al.  Moving Forward and Making a Difference: Research Priorities for the Science of Service , 2010 .

[15]  Lars Witell,et al.  Setting a research agenda for service business in manufacturing industries , 2010 .

[16]  Lars Witell,et al.  Service innovations in manufacturing firms , 2010 .

[17]  M. Toivonen,et al.  Emergence of innovations in services , 2009 .

[18]  Daniel Kindström,et al.  Development of industrial service offerings: a process framework , 2009 .

[19]  Lars Witell,et al.  Managerial Recommendations for Service Innovations in Different Product-Service Systems , 2009 .

[20]  F. Gallouj,et al.  Innovation in services: a review of the debate and a research agenda , 2009 .

[21]  Elgar Fleisch,et al.  Innovation of product-related services , 2008 .

[22]  Stephen L. Vargo,et al.  From goods to service(s): Divergences and convergences of logics , 2008 .

[23]  Risto Rajala,et al.  Service Innovation Myopia? A New Recipe for Client-Provider Value Creation , 2008 .

[24]  Heiko Gebauer,et al.  An Investigation of Antecedents for the Development of Customer Support Services in Manufacturing Companies , 2007 .

[25]  Nicolaj Siggelkow.  Persuasion with case studies , 2007 .

[26]  黃雅慧.  Service Delivery Innovation: Antecedents and Impact on Firm Performance—The Case of Financial Firms , 2007 .

[27]  Elgar Fleisch,et al.  Success factors for achieving high service revenues in manufacturing companies , 2006 .

[28]  L. Berry,et al.  Creating new markets through service innovation , 2006 .

[29]  Joseph W. Rottman,et al.  Proven Practices for Effectively Offshoring IT Work , 2006 .

[30]  Stephen W. Brown,et al.  Forming Successful Business-to-Business Services in Goods-Dominant Firms , 2005 .

[31]  Christian Berggren,et al.  Manufacturing firms and integrated solutions: characteristics and implications , 2004 .

[32]  Stephen L. Vargo,et al.  Evolving to a New Dominant Logic for Marketing , 2004 .

[33]  Rogelio Oliva,et al.  Managing the transition from products to services , 2003, International Journal of Service Industry Management.

[34]  C. Perry,et al.  A customer‐oriented new service development process , 2002 .

[35]  Lars-Erik Gadde,et al.  Systematic combining: an abductive approach to case research , 2002 .

[36]  Valérie Mathieu.  Product services: from a service supporting the product to a service supporting the client , 2001 .

[37]  D. Lerner,et al.  Quantity and quality , 1961 .

[38]  Jack R. Meredith,et al.  Building operations management theory through case and field research , 1998 .

[39]  Faïz Gallouj,et al.  Innovation in services , 1997 .

[40]  A. Griffin.  PDMA Research on New Product Development Practices: Updating Trends and Benchmarking Best Practices , 1997 .

[41]  Faïz Gallouj,et al.  New modes of innovation: How services benefit industry , 1995 .

[42]  D. A. Horne,et al.  Restructuring towards a Service Orientation: The Strategic Challenges , 1992 .

[43]  K. Eisenhardt.  Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[44]  A. Bryman.  Quantity and quality in social research , 1988 .

[45]  R. Barras.  Towards a theory of innovation in services , 1986 .

[46]  John Metcalfe,et al.  A theoretical approach to the construction of technological output indicators , 1984 .

[47]  K. Lancaster.  A New Approach to Consumer Theory , 1966, Journal of Political Economy.

[48]  J. Schumpeter,et al.  The Theory of Economic Development , 2017 .