The relative impact of culture, strategic orientation and capability on new service development performance

(2013) The relative impact of culture, strategic orientation and capability on new service development performance. This document is made available in accordance with publisher policies and may differ from the published version or from the version of record. If you wish to cite this item you are advised to consult the publisher's version. Please see the URL above for details on accessing the published version. Copyright and all moral rights to the version of the paper presented here belong to the individual author(s) and/or other copyright owners. To the extent reasonable and practicable, the material made available in SRO has been checked for eligibility before being made available. Copies of full text items generally can be reproduced, displayed or performed and given to third parties in any format or medium for personal research or study, educational, or not-for-profit purposes without prior permission or charge, provided that the authors, title and full bibliographic details are credited, a hyperlink and/or URL is given for the original metadata page and the content is not changed in any way. ABSTRACT Purpose: This research attempts to understand the operant resources required for new service development (NSD). It aims to construct a more intricate understanding of how operant resources interact to drive NSD. Specifically, it looks at the impact of culture, strategic orientation and NSD capability for number of new services, the success rate of new services and the resulting financial contribution by NSD to overall firm performance. Design/methodology/approach: To investigate these relationships, data was collected from 105 leading UK-based service firms via a key informant survey. Regression analysis was employed to test the model presented. Findings: Analysis reveals that a different culture (entrepreneurial culture) is needed to drive the number of new services from that required for a higher success rate (learning culture). A NSD capability has an important role supporting both of these aspects of NSD performance. The quantity and quality of NSD go on affect the financial contribution made by NSD. A firm's strategic orientation is also found to directly affect contribution. NSD performance is further enabled by the appropriate alignment of culture, capability and strategic orientation. Research limitations/implications: The results demonstrate that existing research only partially explain NSD performance. The impact of culture, capability and strategic orientation is contingent on how performance is measured. Understanding how different operant resources interweave to deliver NSD will facilitate more informed decision-making leading to the effective …