Skip to main content
SpringerLink
Log in

The relationship between strategic type and new service development competence: a study of Chinese knowledge intensive business services

  • Empirical Article
  • Published:
Service Business Aims and scope Submit manuscript

Abstract

Using the strategic orientation concept of Miles and Snow, the present study aims to test if differences in levels of new service development (NSD) competence exist between prospectors, analyzers, defenders, and reactors. Results from 192 Chinese knowledge intensive business service firms indicate that NSD competence varies in the relation to the firm’s strategic orientation. Prospectors and defenders have higher NSD competence than analyzers. Reactors have lower new service development competence than prospectors, defenders, and analyzers.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Akgün AE, Keskin H, Byrne JC, Aren S (2007) Emotional and learning capability and their impact on product innovativeness and firm performance. Technovation 27(9):501–513

    Article  Google Scholar 

  • Alegre J, Lapiedra R, Chiva R (2006) A measurement scale for product innovation performance. European. J Innov Manag 9(4):333–346

    Article  Google Scholar 

  • Anthony CB, Song M (2003) The relationship between strategic type and firm capabilities in Chinese firms. Int Mark Rev 20(5):514–533

    Article  Google Scholar 

  • Aragón-Sánchez A, Sánchez-Marín G (2005) Strategic orientation, management characteristics, and performance: a study of Spanish SMEs. J Small Bus Manag 43(3):287–308

    Article  Google Scholar 

  • Atuahene-Gima K (1996) Differential potency of factors affecting innovation performance in manufacturing and services firms in Australia. J Prod Innov Manag 13(1):35–52

    Article  Google Scholar 

  • Avlonitis GJ, Papastathopoulou PG, Gounaris SP (2001) An empirically-based typology of product innovativeness for new financial services: success and failure scenarios. J Prod Innov Manag 18(5):324–342

    Article  Google Scholar 

  • Barney JB (1991) Firm resources and sustained competitive advantage. J Manag 17(1):99–120

    Article  Google Scholar 

  • Bilderbeek R, den Hertog P, Marklund G, Miles I (1998) Services in innovation: knowledge intensive business service (KIBS) as co-producers of innovation. SI4S project synthesis work package S3

  • Bitran G, Pedrosa L (1998) A structured product development perspective for service operations. Eur Manag J 16(2):169–189

    Article  Google Scholar 

  • Blumentritt T, Danis WM (2006) Business strategy types and innovative practices. J Manag Issues 18(2):274–291

    Google Scholar 

  • Bollen KA (1989) Structural equations with latent variables. Wiley, New York

    Google Scholar 

  • Child J (1972) Organizational structure, environment and performance: the role of strategic choice. Sociology 6(1):1–22

    Article  Google Scholar 

  • Coates TT, McDermott CM (2002) An exploratory analysis of new competencies: a resource-based view perspective. J Oper Manag 20(5):435–450

    Article  Google Scholar 

  • Conant JS, Mokwa MP, Varadarajan PR (1990) Strategic types, distinctive marketing competencies and organizational performance: a multiple measures-based study. Strateg Manag J 11(5):365–383

    Article  Google Scholar 

  • Cozby PC (2009) Methods in behavioral research, 10th edn. McGraw-Hill, New York

    Google Scholar 

  • Da Silva N, Hutcheson J, Wahl GD (2010) Organizational strategy and employee outcomes: a person-organization fit perspective. J Psychol 144(2):145–161

    Article  Google Scholar 

  • de Brentani U (1989) Success and failure in new industrial services. J Prod Innov Manag 6(4):239–258

    Article  Google Scholar 

  • de Brentani U (1991) Success factors in new developing new business services. Eur J Mark 25(2):33–59

    Article  Google Scholar 

  • den Hertog P (2000) Knowledge-intensive business services as co-producers of innovation. Int J Innov Manag 4(4):491–528

    Google Scholar 

  • Di benedetto CA, Song M (2003) The relationship between strategic type and firm capabilities in Chinese firms. Int Mark Rev 2(5):514–533

    Article  Google Scholar 

  • Dierckx I, Cool K (1989) Asset stock accumulation and sustainability of competitive advantage. Manag Sci 35(12):1504–1511

    Article  Google Scholar 

  • Easingwood CJ (1986) New product development for service companies. J Prod Innov Manag 3(4):264–275

    Article  Google Scholar 

  • Edvardsson B, Olsson J (1996) Key concepts for new service development. Serv Ind J 16(2):140–164

    Article  Google Scholar 

  • Fiol CM (1991) Managing culture as a competitive resource: an identity-based view of sustainable competitive advantage. J Manag 17(1):191–211

    Article  Google Scholar 

  • Gadrey J, Gallouj F, Weinstein O (1995) New modes of innovation: how services benefit industry. Int J Serv Ind Manag 6(3):4–16

    Article  Google Scholar 

  • Galbreath J (2010) The impact of strategic orientation on corporate social responsibility. Int J Org Anal 18(1):23–40

    Article  Google Scholar 

  • Gallouj F, Weinstein O (1997) Innovation in services. Res Policy 26(4–5):537–556

    Article  Google Scholar 

  • Gatignon H, Xuereb JM (1997) Strategic orientation of the firm and new product performance. J Mark Res 34(1):77–90

    Article  Google Scholar 

  • Griffin A (1997) PDMA research on new product development practices: updating trends and benchmarking best practices. J Prod Innov Manag 14(6):429–458

    Article  Google Scholar 

  • Griffin A, Page AL (1996) PDMA success measurement project: recommended measures for product development success and failure. J Prod Innov Manag 13(6):478–496

    Article  Google Scholar 

  • Hall R (1992) The strategic analysis of intangible resources. Strateg Manag J 13(2):135–144

    Article  Google Scholar 

  • Hall R (1993) A framework linking intangible resources and capabilities to sustainable competitive advantage. Strateg Manag J 14(8):607–618

    Article  Google Scholar 

  • Hambrick DC (1983) Some tests of the effectiveness and functional attributes of miles and snow’s strategic types. Acad Manag J 26(1): 5–25

    Google Scholar 

  • Hitt M, Dacin T, Tyler B, Park D (1997) Understanding the differences in Korean and US executives’ strategic orientations. Strateg Manag J 18(2):159–167

    Article  Google Scholar 

  • Hitt MA, Clifford PG, Nixon RD, Coyne K (1999) Dynamic strategic resources: development diffusion and integration. Wiley, New York

    Google Scholar 

  • Holmbeck GN (1997) Toward terminological, conceptual, and statistical clarity in the study and pediatric psychology literatures. J Consulting Clin Psychol 65(4):599–610

    Google Scholar 

  • James WL, Hatten KJ (1995) Further evidence on the validity of the self-typing paragraph approach: Miles and Snow’s strategic archetypes in banking. Strateg Manag J 16(2):161–168

    Article  Google Scholar 

  • Jerez-Gómez P, Céspedes-Lorente J, Valle-Cabrera R (2005) Organizational learning capability: a proposal of measurement. J Bus Res 58(6):715–725

    Article  Google Scholar 

  • Ketchen DJ (2003) An interview with Raymond E. Miles and Charles C. Snow. Acad Manag Exec 17(4):97–104

    Article  Google Scholar 

  • Kogut B, Kulatilaka N (2001) Capabilities as real options. Org Sci 12(6):744–758

    Article  Google Scholar 

  • Lattin JM, Carroll JD, Green PE (2005) Analyzing multivariate data. China Machine Press, Beijing

    Google Scholar 

  • Liu SZ (2009) Organizational culture and new service development performance: insights from knowledge intensive business service. Int J Innov Manag 13(3):371–392

    Article  Google Scholar 

  • Menor LJ, Roth AV (2007) New service development competence in retail banking: construct development and measurement validation. J Oper Manag 25(4):825–846

    Article  Google Scholar 

  • Menor LJ, Roth AV (2008) New service development competence and performance: an empirical investigation in retail banking. Prod Oper Manag 17(3):267–284

    Article  Google Scholar 

  • Menor LJ, Tatikonda MV, Sampson SE (2002) New service development: areas for exploitation and exploration. J Oper Manag 20(2):135–157

    Article  Google Scholar 

  • Michel JG, Hambrick DC (1992) Diversification posture and top management team characteristics. Acad Manag J 35(1):9–37

    Article  Google Scholar 

  • Miles RE, Snow CC (1978) Organizational strategy, structure, and process. McGraw-Hill, New York

    Google Scholar 

  • Miles RE, Snow CC, Meyer AD, Coleman HJ (1978) Organizational strategy, structure, and process. Acad Manag Rev 13(3):546–562

    Google Scholar 

  • Miles I, Kastrinos N, Flanagan K, Bilderbeek R, Hertog P, Huntink W, Bouman M (1995) Knowledge intensive business services: users, carriers and sources of innovation. Rappon pour DG13 SPRINT-EIMS, Manchester, UK

  • Narver JC, Slater SF, MacLachlan DL (2004) Responsive and proactive market orientation and new-product success. J Prod Innov Manag 21(5):334–347

    Article  Google Scholar 

  • Nunnaly J (1978) Psychometric theory. McGraw-Hill, New York

    Google Scholar 

  • O’Cass A, Ngo LV (2007) Balancing external adaptation and internal effectiveness: Achieving better brand performance. J Bus Res 60(1):11–20

    Article  Google Scholar 

  • OECD (2000) Promoting innovation and growth in services, Organisation for Economic Cooperation and Development, Paris

  • Ojasalo J (2008) Innovation management in knowledge intensive services. The business review. Cambridge 9(2):212–219

    Google Scholar 

  • Olson EM, Slater SF, Hult GTM (2005) The performance implications of fit among business strategy, marketing organization structure, and strategic behaviour. J Mark 6(3):49–65

    Article  Google Scholar 

  • Peaks H, Riihela N (2004) An exploration of inter-functional integration in the new service development process. Serv Ind J 24(6):37–63

    Article  Google Scholar 

  • Podsakoff PM, Organ DW (1986) Self-reports in organizational research: problems and prospects. J Manag 12(4):531–544

    Article  Google Scholar 

  • Porter ME (1980) Competitive strategy: techniques for analyzing industries and competitors. Free Press, New York

    Google Scholar 

  • Porter ME (1996) What is strategy? Harv Bus Rev 74(6):61–78

    Google Scholar 

  • Punnett BJ, Shenkar O (1994) International management research: toward a contingency approach. In: Prasad SB (ed) Advances in international comparative management, vol 9. JAI Press, Greenwich, CT, pp 39–55

  • Rhee M, Mehra S (2006) A strategic review of operations and marketing functions in retail banks. Int J Serv Ind Manag 17(4):364–379

    Article  Google Scholar 

  • Rumelt R (1991) How much industry matter? Strateg Manag J 12(3):167–185

    Article  Google Scholar 

  • Schein EH (2004) Organizational culture and leadership, 3rd edn. Jossey-Bass, San Francisco

    Google Scholar 

  • Shortell SM, Zajac EJ (1990) Perceptual and archival measures of Miles and Snow’s strategic types: a comprehensive assessment of reliability and validity. Acad Manag J 33(4):817–832

    Article  Google Scholar 

  • Simsek Z (2007) CEO tenure and organizational performance: an intervening model. Strateg Manag J 28(6):653–662

    Article  Google Scholar 

  • Slater SF, Narver JC (1993) Product-market strategy and performance: an analysis of the Miles and Snow strategy types. Eur J Mark 27(10):33–51

    Article  Google Scholar 

  • Smith GS, Guthrie JP, Chen M (1989) Strategy, size, and performance. Org Stud 10(1):63–81

    Article  Google Scholar 

  • Snow CC, Hambrick DC (1980) Measuring organisational strategies: some theoretical and methodological problems. Acad Manag Rev 5(4):527–538

    Google Scholar 

  • Snow CC, Hrebeniak L (1980) Strategy, distinctive competence, and performance. Adm Sci Q 25(2):317–336

    Article  Google Scholar 

  • Song M, Di Benedetto A, Nason RW (2007) Capabilities and financial performance: the moderating effect of strategic type. J Acad Mark Sci 35(1):18–34

    Article  Google Scholar 

  • Stevens E, Dimitriadis S (2005) Managing the new service development process: towards a systemic model. Eur J Mark 39(1/2):175–198

    Article  Google Scholar 

  • Storey C, Easingwood CJ (1999) Types of new product performance: evidence from the consumer financial sector. J Bus Res 46(2):193–203

    Article  Google Scholar 

  • Storey C, Kelly D (2001) Measuring the performance of new service development activities. Serv Ind J 21(2):71–90

    Article  Google Scholar 

  • Sundbo J (1997) Management of innovation in services. Serv Ind J 17(3):432–455

    Article  Google Scholar 

  • Sundbo J, Gallouj F (1998) Innovation in services. SI4S project synthesis work package, 3–4

  • Veliyath R, Ferris SP, Ramaswamy K (1994) Business strategy and top management compensation: the mediating effects of employment risk, firm performance and size. J Bus Res 30(2):149–159

    Article  Google Scholar 

  • Wang Y, Lo H, Yang Y (2004) The constituents of core competencies and firm performance: evidence from high-technology firms in china. J Eng Technol Manag 21(4):249–280

    Article  Google Scholar 

  • Zahra S, Pearce J (1990) Research evidence on the Miles–Snow typology. J Manag 16(4):751–768

    Article  Google Scholar 

Download references

Acknowledgments

The authors are grateful for the finance received from the National Natural Science Foundation of China (NSFC) in the research project 70772119. Many thanks are given to Ministry of Education of People’s Republic of China which funded my research in the research project (NCET-08-0759).

Author information

Authors and Affiliations

  1. School of Economics and Management, Central China Normal University, 152# Luoyu Road, Wuhan, 430079, Hubei, People’s Republic of China

    Shunzhong Liu

Authors
  1. Shunzhong Liu
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Shunzhong Liu.

Appendix: the paragraphs used in the self typing approach

Appendix: the paragraphs used in the self typing approach

These paragraphs were adopted from James and Hatten (1995).

Type 1 We have not been able to have a consistent service-market orientation. We have not been able to be as aggressive in maintaining established services and markets as have our competitors and we have not been able to take as many risks as they have. We have been forced to respond to environmental pressures.

Type 2 We have attempted to locate and maintain a secure niche in a relatively stable service area. We’ve tried to offer a more limited range of services than our competitors and we’ve tried to protect our domain by offering higher quality and superior service. We may not be at the forefront of developments in the industry but have attempted to concentrate instead on doing the best job possible in our market.

Type 3 We have attempted to maintain a stable, limited line of services; while at the same time have tried to move out quickly to follow a carefully selected set of the more promising new developments in the industry. We are seldom "first in" with new services but by carefully monitoring the actions of major competitors in areas compatible with our stable service-market base we try to be "second in" with a more cost-efficient service.

Type 4 We have tried to operate within a broad service-market domain that undergoes periodic redefinition. We’ve wanted to be "first in" with new services and market areas even if not all of these efforts have proven to be highly profitable. We’ve tried to respond rapidly to early signals concerning areas of opportunity, and these responses have often led us to a new round of competitive actions.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Liu, S. The relationship between strategic type and new service development competence: a study of Chinese knowledge intensive business services. Serv Bus 6, 157–175 (2012). https://doi.org/10.1007/s11628-011-0122-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11628-011-0122-x

Keywords

Search

Navigation