The Handbook of Innovation and Services
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The Handbook of Innovation and Services

A Multi-disciplinary Perspective

Edited by Faïz Gallouj and Faridah Djellal

This Handbook brings together 49 international specialists to address an issue of increasing importance for the world’s post-industrial economies; innovation as it relates to services.
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Chapter 11: Service Innovation: Development, Delivery and Performance

Joe Tidd and Frank M. Hull


Joe Tidd and Frank M. Hull 11.1 Introduction In this chapter we develop and test a framework for the development and delivery of service products. A generic framework is potentially useful because goods and services are increasingly bundled; for example, many intangible service products have physical manifestations that require operations similar to those in manufacturing, and products include intangible services. A more robust model therefore offers an opportunity for adding value both to theoretical understanding of systems and to practical applications to a wider scope of activities within a greater variety of contexts. We test the framework using data from comparable studies of 108 service enterprises in the UK and USA (Tidd and Hull, 2003, 2006). The dependent variables include an index of product development plus service delivery, and explores the trade-offs between improving cost and time on the one hand, and innovation and quality on the other. The latter is important because the delivery process is sometimes tantamount to the service offering itself. We know a great deal about the organization and management of new product development in the manufacturing sectors, but we know comparatively little about how applicable this is to the service sector (Miles, 2000; Tidd and Bessant, 2009). In this chapter we explore the extent to which a framework for organizing and managing new product development, derived from good practice in manufacturing, predicts variation in performance in service companies in the USA and the UK. The framework we developed is based on proven good practice in...

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