A Staged Service Innovation Model*

ABSTRACTDrawing from the new product development (NPD) literature, service quality literature (SERVQUAL), and empirically grounded research with 53 service innovation decision makers, we develop a staged service innovation model (SIM) for decision makers. We tested the model using empirical data from 329 firms across five industries. The empirical results show that integrating prelaunch service quality training into new service development process leads to successful service innovation. The model developed in this article can be used as a decision support tool and diagnostic model for assessing service innovation ideas, evaluating performance of ongoing service innovations, allocating resources, and improving success rate of service innovations. Decision makers can use the measures developed in this study as a checklist to identify their strengths in delivering service quality to their own customers as well as areas of improvement. This article extends service innovation research by combining NPD and service quality development into a single study and opens the door to further work that could help improve the success rate of service innovations. The model can serve as a base model for future research extensions in service innovation research. A major takeaway for the academic reader is that the SIM demonstrates the value of using the SERVQUAL literature to understand how best to provide excellent quality that results in more fully satisfied customers and, ultimately, improved service performance.