New service development: managing the dynamic between services and operations resources

Purpose – Previous research suggests new service development (NSD) is characterized by less stable offerings, less formal processes and is more emergent than new product development. In face of these issues, it seems managers must concern themselves more with the management of the underlying resources. To understand this distinctive nature of NSD, this study aims to investigate the relationship between NSD and operations resources. Design/methodology/approach – Building on the resource and capabilities perspective, a multiple case study was designed to investigate how the NSD is influenced by and reconfigures operations resources and capabilities. Data were collected in three providers of bespoke B2B services. Findings – The paper proposes a model of NSD composed of three stages: emergence, accommodation and consolidation. This model describes the process that takes place when providers redeploy their operations resources and capabilities to implement emerging service ideas. The findings also show the challenges associated with the reconfiguration of operations resources and capabilities and with the reconciliation of the requirements of the existing and new services. Research limitations/implications – The paper looked at services successfully implemented in knowledge‐intensive SMEs. Other studies could explore these NSD processes in other contexts and initiatives that failed. Practical implications – The paper presents the risks and efforts involved in using existing resources to take advantage of emerging service ideas. Originality/value – The model takes a fundamentally different perspective from many NSD models. It shifts the focus from managing the new service to managing the resources that underpin the evolving and emerging service ideas and offerings. This paper should interest people willing to understand the distinctive nature of NSD.