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Understanding the role of willingness to cannibalize in New Service Development

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Publication Date
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Wageningen University and Researchcenter Publications
Keywords
  • Leerstoelgroep Bedrijfskunde
  • Management Studies
  • Bedrijfskunde
  • Management Studies
  • Mgs
  • Mgs
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Abstract

Although the importance of studying service innovation is widely recognized a specific service development model is lacking. This article aims to develop and test such a model of new service development behavior. Building on the work of Chandy and Tellis (1998), the authors argue that a company's willingness to cannibalize on its sales, its capabilities, and its prior investments is key to understanding new service development. The authors develop a conceptual model explaining the antecedents of the three dimensions of willingness to cannibalize as well as the consequences in terms of innovation behavior and firm performance. Data from 217 service SMEs was used to test the model. The results indicate that the model holds well

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