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

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posted on 2023-06-08, 22:09 authored by Chris StoreyChris Storey, Mathew Hughes
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 aims to look 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 were 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 to 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 explains 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 use of organizational resources. Practical implications – The results show that there are different pathways to NSD performance depending on existing organizational conditions. Firms with an entrepreneurial culture should employ a Prospector orientation, whereas firms with a learning culture benefit from an Analyzer orientation. Defenders need to build on existing capabilities. Originality/value – To date no study has assessed the relative effect of culture, strategic orientation and capability on NSD performance. The complex contingency model presented here offers a timely contribution to the theory base underpinning the development of operant resources for NSD.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

European Journal of Marketing

ISSN

0309-0566

Publisher

Emerald

Issue

5/6

Volume

47

Page range

833-856

Department affiliated with

  • Business and Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2015-08-20

First Open Access (FOA) Date

2016-06-07

First Compliant Deposit (FCD) Date

2016-06-07

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