Understanding new service development and service innovation through innovation modes
Journal article, 2014
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.
Multiple case study
New service development