New Service Development and Digitalization: Synergies of Personal Interaction and IT Integration

Abstract

This study investigates the effects of personal interaction and information technology integration (IT integration) on new service development in business-to-business (B2B) service firms' relationships. Personal interaction, IT integration and new service development are latent variables in a structural model tested with LISREL (N = 138). The relationship between personal interaction and IT integration is strong and indicates that both these constructs are drivers for new service development. Although both these constructs represent diverse ways of interacting, they both positively impact new service development. Hence, managers should not expect IT to replace personal interaction to a great extent in B2B-service contexts.