Simultaneous Involvement in Service Product Development: A Strategic Contingency Approach

Frank M. Hull ()
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Frank M. Hull: Graduate Business Administration, Fordham University, New York, New York 10023, USA

International Journal of Innovation Management (ijim), 2003, vol. 07, issue 03, 339-370

Abstract: This paper analyzes how simultaneous involvement by multiple functions in the development of service products affects performance. Early simultaneous involvement entails input from the outset by all relevant functions, especially those representing downstream competencies. Given that cross-functional involvement is time consuming and costly, one may hypothesize that its best for high performance only to the extent needed, such as at early stages of development or under the condition of novelty.The impact of simultaneous involvement on performance is measured as time compression and cost reduction. The contributions of ten functions are examined at three stages of a development cycle: (1) product concept; (2) product release; and (3) after sale. How product innovation strategy moderates the impact of simultaneous influence on performance, measured as time compression and cost reduction, is examined for three product innovation strategies: new, major modifications, and minor modifications.Results from analyzing 62 service enterprises in New York show that simultaneous involvement by multiple functions has the strongest main effects on performance at the earliest stage of the product concept. But, it also has weaker effects after initial sale. If the product innovation strategy is one of novelty, simultaneous involvement by multiple functions has interactions with performance throughout the development cycle. Some functions appear to be a kind of core team that is involved throughout. Others play more stage specific roles.If the product innovation strategy involves a lesser magnitude of innovation, levels of simultaneous involvement are either lower and/or do not have positive interactions with performance. These results are generally consistent with contingency theory that suggests the level of coordination and integration is affected by the novelty and uncertainty of the task environment.These results parallel those observed studies of goods industries. However, the level of augmentation of service products after initial sale, especially those involving interpersonal exchanges and transactions, appears higher than for more tangible goods.

Keywords: Strategic management; new service development; contingency theory (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S1363919603000854

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