Online citations, reference lists, and bibliographies.
← Back to Search

Differential Potency Of Factors Affecting Innovation Performance In Manufacturing And Services Firms In Australia

Kwaku Atuahene-Gima
Published 1996 · Business

Cite This
Download PDF
Analyze on Scholarcy
Share
Whether or not industrialized nations are experiencing a fundamental shift from a manufacturing- to a service-based economy may be a matter of debate. However, the service sector is clearly growing at an explosive rate, particularly in comparison with manufacturing. With this in mind, we need to better understand how the successful development of new services differs from that of new products. Such understanding requires identifying the critical success factors for new service development (NSD), as well as contrasting them with the factors underlying successful new product development (NPD). Kwaku Atuahene-Gima describes the results of a study comparing the innovation activities of Australian services firms and manufacturers. The study explores managers' perceptions of the factors necessary for successful NSD and NPD. In addition to comparing the differing perceptions of managers of services firms and manufacturers, the study highlights implications of these differences for managers striving for improved NSD. Services and manufacturing firms focus on similar factors for improving innovation performance. However, the relative importance of those factors depends on the type of firm. The critical factor for services—the importance accorded to innovation activity in the firm's human resource strategy—ranks third in importance for manufacturers. Manufacturers focus primarily on product innovation advantage and quality. In contrast, service innovation advantage and quality ranks third in importance for service firms. Surprisingly, technology synergy is found to have a negative effect on new service performance. If a new service is a close fit with a firm's current technologies, competitors will likely be able to quickly imitate the new service. As a result, NSD efforts based on technology synergy will not provide a competitive advantage. Compared to manufacturers, successful service firms must place greater emphasis on the selection, development, and management of employees who work directly with the customer. Through effective self management, these contact personnel shape the quality of the customer relationship. In addition, their close contact and potentially long-term relationships with customers make such employees an important source of new ideas in the firm's NSD process. Such relationships also cast contact personnel in a make-or-break role in the launching of new services.
This paper references
Designing Services That Deliver
G. L. Shostack (1996)
10.5465/AMR.1986.4282643
Linking Theory Construction and Theory Testing: Models with Multiple Indicators of Latent Variables
M. Hughes (1986)
10.5465/255954
Stage of the Product Life Cycle, Business Strategy, and Business Performance
Carl R. Anderson (1984)
10.1016/0737-6782(91)90002-G
New industrial financial services: What distinguishes the winners
R. Cooper (1991)
Lisrel 8: User's Reference Guide
K. G. Jöreskog (1989)
10.1108/02652329310027684
Why European Financial Institutions Do Not Test‐market New Consumer Products
Aliah Mohammed‐Salleh (1993)
10.1037/0033-2909.107.2.238
Comparative fit indexes in structural models.
P. Bentler (1990)
10.1177/002224378802500207
An Updated Paradigm for Scale Development Incorporating Unidimensionality and Its Assessment
David W. Gerbing (1988)
10.1016/0167-8116(94)90031-0
An exploratory investigation of the interdependence between marketing and operations functions in service firms
J. Mahajan (1994)
10.1287/MNSC.38.2.157
Profiles of Product Innovators Among Large U.S. Manufacturers
N. Capon (1992)
Developing new services
William R. George (1984)
10.1016/0737-6782(94)90116-3
Identifying New Product Successes in China
M. Parry (1994)
10.2307/2530893
Applied Linear Regression Models
J. Neter (1983)
10.1002/smj.4250010103
Growth strategies for service firms
James M. Carman (1980)
10.1080/08956308.1993.11670902
Managing Human Resources for Innovation and Creativity
A. Gupta (1993)
Emerging perspectives on services marketing
L. Berry (1983)
10.2307/1251817
Relationship Quality in Services Selling: An Interpersonal Influence Perspective:
L. A. Crosby (1990)
10.1177/002224299405800407
The Influence of Coworker Feedback on Salespeople
A. Kohli (1994)
10.1080/0267257X.1988.9964048
New service development
D. W. Cowell (1988)
10.1037/0021-9010.76.1.60
Gender differences in work-family conflict.
L. Duxbury (1991)
10.1108/EUM0000000002478
Developing New Services: Improving the Process Makes it Better
M. Bowers (1989)
10.1016/0019-8501(85)90037-9
Overall corporate strategies for new product programs
R. Cooper (1985)
10.1016/1047-8310(93)90018-B
Management of technology in the service sector: Practices in the banking industry
J. Morone (1993)
10.1016/0019-8501(87)90016-2
Keys to new product success and failure
P. Link (1987)
10.1108/02652329310027675
The New Product Process in Financial Services: Strategy for Success
Ulrike de Brentani (1993)
Comparative Fit Indices in Structural Models
P. M. Bentler (1990)
10.1002/SMJ.4250060106
Competitors' responses to easily imitated new products—exploring commercial banking product introductions
I. MacMillan (1985)
10.1177/002224377701400320
Estimating Nonresponse Bias in Mail Surveys
J. S. Armstrong (1977)
10.1108/02652329310027701
Developing New Financial Services within UK Building Societies
S. Edgett (1993)
10.1016/0737-6782(86)90005-6
New product development for service companies
C. J. Easingwood (1986)
10.2307/2392589
Organizational strategy, structure, and process.
R. E. Miles (1978)
10.1177/002224379102800306
A Cross-National Assessment of the Reliability and Validity of the CETSCALE
R. G. Netemeyer (1991)
Social Measurement: Current Issues
G. Bohrnstedt (1981)
10.2307/3003464
Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition
S. Lippman (1982)



This paper is referenced by
10.1108/14601060710745233
Information processing and new product success: a meta‐analysis
Iryna Pentina (2007)
10.1080/13662716.2013.771482
Service Innovativeness and Innovation Success in Technology-based Knowledge-Intensive Business Services: An Intellectual Capital Approach
Antonio Carmona-Lavado (2013)
Assessing and improving the enablers of innovation: the development of an innovation capability assessment instrument
Michael E. Ottaviano (2004)
Analysis of ICTs Opportunities on Firm's Success: An Innovation Process
A. Jiménez-Zarco (2017)
10.1108/08876041011017853
Strategies for achieving success for innovative versus incremental new services
Michael C. Ottenbacher (2010)
10.5539/IBR.V8N11P1
The Theoretical Study and Empirical Research Process of Service Innovation: A Literature Review
Di Rong (2015)
Developing Innovations : What Factors Impact the Performance of Chain Affiliated versus Independent Hotels
(2013)
10.1300/J033v11n04_03
Effects of Extrinsic Attributes on Perceived Quality, Customer Value, and Behavioral Intentions in B2B Settings: A Comparison Across Goods and Service Industries
A. Kumar (2004)
10.1142/S0219877017500183
Shared Value Innovation: Linking Competitiveness and Societal Goals in the Context of Digital Transformation
U. Lichtenthaler (2017)
10.1108/IMDS-08-2016-0339
Barriers to innovation in service SMEs: evidence from Mexico
Gonzalo Maldonado-Guzmán (2017)
Knowledge protecting methods in different types of companies
B. Xu (2010)
Beyond Innovation Contests: a Framework of Barriers to Open Innovation of Digital Services
A. Hjalmarsson (2014)
10.4067/S0718-27242014000200004
Does Service Innovation Matter in High-Tech Industry?
Chao-Hung Wang (2014)
A critical analysis of the relationship between marketing agencies and their clients in the banking and telecom service sector in Pakistan
Nauman Wajid (2018)
10.1061/40475(278)57
Variables Affecting Innovations in the U.S. Construction Industry
P. Goodrum (2000)
Perceptions of innovations: exploring and developing innovation classification
R. Adams (2003)
10.1142/S1363919609002388
PRIVATE-LABEL NPD PROCESS IMPROVEMENT IN THE UK FAST MOVING CONSUMER GOODS INDUSTRY
M. Francis (2009)
Relationship of strategic human resource practices and organizational innovation in one of the military centers
Z. Sadeghi (2011)
10.1080/00207543.2013.849363
The antecedents and consequences of product and process innovation strategy implementation in Australian manufacturing firms
J. Jayaram (2014)
10.1016/J.INDMARMAN.2016.02.018
The interactive effects of entrepreneurial orientation and capability-based HRM on firm performance: The mediating role of innovation ambidexterity
J. Zhang (2016)
10.1111/JPIM.12201
Impacts of Hedonic and Utilitarian User Motives on the Innovativeness of User-Developed Solutions: Motives for User-Developed Solutions
R. Stock (2015)
A Conceptual Review of Innovative Work Behavior in Knowledge Intensive Business Services among Knowledge Workers in Malaysia
Yeoh Khar Kheng (2013)
10.1016/S1441-3582(02)70140-7
New Service Development and Competitive Advantage: A Conceptual Model
J. Weerawardena (2002)
10.4018/ijcrmm.2020040105
Testing the Impact of Social CRM on Firm Performance: The Role of Customer Engagement, Innovation Performance and Social Media Use
Wafa Belkahla Hakimi (2020)
Leadership as a determinant of innovative behaviour
J. Jong (2003)
10.1016/J.INDMARMAN.2014.06.010
Synergy, environmental context, and new product performance: A review based on manufacturing firms
Chi-tsun Huang (2014)
Radical service innovation capabilities and competences and its performance measurement in the Egyptian banking sector
Farek El Shafeey (2013)
10.1080/09585192.2019.1629983
The effects of entrepreneurial orientation on job stressors and the moderating role of high-performance work systems: employee perspectives from two industries
S. Giannikis (2019)
10.1016/S0024-6301(98)80052-6
Competing through design
M. Trueman (1998)
10.1016/j.lrp.2019.101926
Relative exploration and firm performance: Exploring curvilinear relationships and the role of industry, instability, and munificence
Vivien E. Jancenelle (2019)
10.1108/02651330610670433
Service innovation strategy and process: a cross‐national comparative analysis
I. Alam (2006)
An Innovative Model of Service Development: A process guide for service managers
A. Shekar (2007)
See more
Semantic Scholar Logo Some data provided by SemanticScholar