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Paper info: Value-Creating Networks in New Service Development: Evidence from a Knowledge-Broker Organization

Title


Value-Creating Networks in New Service Development: Evidence from a Knowledge-Broker Organization

Authors


Aino Halinen
Turku School of Economics and Business Administration
Finland
Aino Halinen , Elina Jaakkola and
Helena Rusanen
Turku School of Economics and Business Administration
Finland
Helena Rusanen

Place of Publication


The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.

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Abstract


Abstract
Purpose of the paper and literature addressed: In this study a resource perspective is taken to the study of networks. The purpose of the paper is to provide insight into the resource access through relationships for the purpose of new service development. The paper discusses the resources sought in business networks for new service development, resource strategies applied both in intra-firm and inter-organizational networks and nature of relationships that each resource strategy requires. The study draws on the IMP industrial network approach and the strategic network concept.
Research method: The empirical research applied a qualitative case study where 33 interviews were conducted in three case companies in Finland. The studied companies provide technical services for business and public customers, and they had several ongoing new service development projects at the time of the study.
Research findings: When seeking resources for new service development in intra-firm and inter-organizational networks, the applied resource strategy depends on the nature of the sought resource. Thus new service development may necessitate various resource strategies in the business network. The resources sought in business networks either assist in the development process or become part of the new service. They are mostly accessed through mobilizing which takes place within existing business relationships or in intense new service development relationships depending on the nature of the sought resource. Resources that can be mobilized in existing business relations consist either of financial and physical resources which assist the development process or informational and organizational resources that are accessible in connection with specific customer solution development. Further, some relational resources can be mobilized in existing business networks. Mobilizing of resources is possible also in new business relationships when the supplier both creates and provides a service element inside a larger service entity. The resources accessible through business networks do not, however, interact considerably with each other, which sets limits to their value in new service development compared to resources that can interact with each other and enable the firm to develop valued service offerings (Madhavaram & Hunt 2008).
Resources that interact with each other and are thus the most valuable in new service development are accessible only in intense new service development relationships. Such resources are mainly knowledge-based and include dynamic resources such as specific professional knowledge and skills. As intense collaboration necessitates trust and commitment, it is most probably pursued in strategic partnerships and customerships.
Main contribution: The study contributes to industrial marketing knowledge and new service development literature by providing new conceptual understanding of resource access in case of collaborative new service development. It provides a theoretical framework that connects the applied resource strategies to the nature of sought resources and required relationship characteristics.
Keywords: resources, resource access, resource strategy, business services, solutions, new service development, development network