Handbook of Management Scales/New service development culture

New service development culture (composite reliability = 0.69; average variance extracted = 0.37)

Description

The authors report a two-stage approach for the development and validation of new multi-item measurement scales reflecting a multidimensional construct called new service development competence. It is operationalized as a multidimensional construct reflected by five complementary dimensions: new service development process focus, market acuity, new service development strategy, new service development culture, and information technology experience.

Definition

New service development competence reflects an organization's expertise in deploying resources and routines, usually in combination, to achieve a desired new service outcome. New service development culture captures the values and beliefs fostered by the service organization that indicate a willingness and desire to innovate.

Items

• Our firm encourages entrepreneurial efforts and is accepting of risk-taking efforts. (0.548)
• The glue that holds our organization together is a commitment to innovation and new service/product development. (0.766)
• Our firm emphasizes its human resources and places a premium on high cohesion and morale in its new service development activities. (0.486)
• Non-monetary rewards are employed in new service/product development projects as a means of recognizing employee efforts. (0.581)

Sources

• Menor/Roth (2007): New service development competence in retail banking: Construct development and measurement validation. Journal of Operations Management, Vol. 25, No. 4, pp. 825-846.

Comments

Much efforts have been made by the authors in order to ensure that the new scales exhibit sufficient psychometric properties, which make them quite useful. However, the values of both composite reliability and specificially average variace extracted are too low. Thus, this scale may not be used without modifications and/or new items.