A research agenda for investigation of product innovation in the financial services sector

Abstract

Purpose – Holistically reviews the literature, examines critically and summarises systematically the major pioneering works of contributors in this field. Its primary objective is to formulate a research agenda in the area of new service development (NSD) in the financial services sector. Design/methodology/approach – A comprehensive in-depth content analysis: theoretical discussion and conceptual frameworks of product innovation are carried out. This paper explores and evaluates extant frameworks of the tangible NPD process, which form the basis for NPD for the services literature. NSD has been central to the literature on services marketing, and a competitive weapon for firms, the important propensity has been related to the investigation of NSD issues. Findings – This study identifies significant deficiencies and gaps (e.g. stakeholders involvement: roles of customers and supportive activities units) in the literature, with specific regard to new financial product development relating to the financial services sector. Research limitations/implications – This emerging approach to NPD suggests a new perspective on how to achieve NPD success in the financial services sector. Practical implications – Managers and executives should strategically rethink the stakeholders’ roles, and the design and management of a NSD process. They should be aware of beneficial gains, which can be obtained from the process of stakeholder integration and involvement in NSD activities. Originality/value – Provides a critical overview and analysis of theoretical perspectives on financial NSD /NPD with an annotated bibliographical reference covering the period between 1957 and 2005, which can help the advance of NSD research in the financial services sector. It also adds to the growing literature on the financial service innovation process.