Determinants of success in new service development

Abstract

This paper focuses on the study of success determinants in service innovation. Specifically, the interaction between five key variables in the new service development and their effects on performance are analyzed. The proposed conceptual model is tested using structural equation modeling (SEM) from a sample of 256 hotels located in Spain. The results show the support of top management as a leading figure behind the existence of a better communication in-house and a greater employee involvement. In turn, the effect of these two variables promotes the supply of a service with more added value for the customer, and the presence of synergies between the new service and business resources. Finally, a direct and positive effect of these variables (added value for the customer, and synergies between the new service and business resources) is identified on the performance obtained with the customers. The study also supports the influence of this customer performance on the company performance linked to new service success.