New Service Development: The Supplier Capability Approach

Abstract

The aim of this study is to identify a supplier’s new service development capabilities and detail the means of capability development. Currently, most research stresses the active role of a customer in new service development. However, a service supplier needs to develop new service development capabilities to enable and enhance that active role. We use a multiple case study to detect such capabilities in a technological service setting. As a result, the study categorizes the capabilities into service-, structure- and interaction-based new service co-creation capabilities and finds interaction to be an important contributor to their development. The study provides tentative tools for managers that seek to involve their customers in the new service development process.