Learning during the New Financial Service Innovation Process: Antecedents and Performance Effects

This article theoretically and empirically examines the antecedents and consequences of project learning during the new financial service innovation process. We analyze the impact of project learning on project performance and performance of the financial institution. Next we investigate the antecedent role of the nature of communication and organizational design on project learning. Following the development of a propositional framework, a survey research has been developed within the Belgian banking industry. Our research findings indicate that the level of project learning contributes to the corporate reputation of the financial institution. Moreover, learning during project innovation enhances the cost and the competitive position of the innovating bank. Our study empirically supports the crucial influence of management support, harmonious cross-functional interfaces, organizational diversity and participative decision-making on the level of project learning. Both innovative and coordinative communication are needed to balance the information needs throughout the innovation process. However, our findings underline the fact that the impact of innovative communication on the level of project learning is contingent upon the quality of the planning stage. The up-front activities of the innovation process seem to have an important leveraging effect on learning, and hence on project and bank performance.Economics ;

New service development in high tech sectors: a decision making perspective

Many service companies active in high tech sectors have implemented largely decentralized decision architectures in their innovation processes. This is done to improve responsiveness under extremely dynamic and uncertain business conditions. As a consequence of the empowerment of decision-makers at the product management level, the success of the New Service Development (NSD) process will increasingly depend on individual product managers’ information processing and decision-making performance. The present study investigates antecedents of decision-making effectiveness in the high tech NSD process, and reports on a case study performed in the mobile telecommunication services industry. NSD project managers’ unique task conditions are articulated, and some antecedents and moderators of effective decision-making are identified in a study of four innovation projects. Findings are integrated in a theoretical framework. The study reveals the crucial role of decision-makers’ flexible use of various cognitive styles, their proactive attitude, and their capability to mentally represent innovation interfaces with the customer, the technology and the firm. Managerial implications and suggestions for further research are provided.management and organization theory ;

Hybrid orchestration in multi-stakeholder innovation networks : practices of mobilizing multiple, diverse stakeholders across organizational boundaries

The prominence of inter-organizational networks for innovation raises questions about how to support collaboration between multiple, diverse stakeholders. We focus on network orchestration and examine the practices that support orchestrators in dealing with the challenges brought by the number and diversity of stakeholders. Using qualitative, longitudinal data from an innovation network of 57 stakeholders, we identify three types of orchestration practices – connecting, facilitating and governing – and observe how they underlie innovation trajectories over time, each supporting the achievement of distinct network outcomes. Within and across trajectories, we observe how orchestrators rely on hybrid orchestration: they switch between dominating and consensus-based orchestration modes, in response to emergent network challenges. By switching between modes, orchestrators address the complexities of simultaneously and temporally dealing with a large number and diversity of stakeholders. With these findings, we present a toolbox of practices for network orchestrators to address distinct challenges in different types of networks and underscore that network research should consider the plurality of networks, rather than treat them as universalistic. Orchestrators play a key role in managing this plurality: they act as environmental scanners who address emergent network challenges through hybrid orchestration. This realization opens new avenues for network research, for example, relating to the skills and capabilities of orchestrators

Revisiting the Concept and Classification of Distribution Service Outputs

Distribution service outputs structurally play a pivotal role in retail and channel management. This paper critically assesses the nature of Bucklin’s classic formulation, which is concerned with numerically expressible economic benefits resulting from the execution of the distribution function, within a perfectly operating economic channel. It is distinguished from post-classic extensions which provide alternative multi-functional or institutional approaches. The paper captures both approaches in a generic higher-order customer value scheme, which also redefines and broadens the traditional economic customer benefits. The proposed generic framework also extends to any marketing subfield, and provides the potential for more focussed theoretical and empirical research.