A number of new service development (NSD) tools have been proposed to facilitate NSD processes. Despite the proved values, NSD tools are not used frequently. The purpose of this paper is to investigate the usage pattern of NSD tools and to identify the factors that influence their adoption.
By integrating the theory of planned behaviour (TPB) and the literature on organizational adoption of innovation, a framework was developed. Empirical data from financial institutions in Singapore and Taiwan were collected. Partial least squares was used to test the model comprising both reflective and formative constructs.
The framework shows satisfactory predictive power. Attitude, subjective norm, and perceived behaviour control are significantly related to behaviour intention. Perceived usefulness and perceived ease of use are antecedents of attitude. Competitive pressure influences subjective norm. Perceived behaviour control is determined by compatibility and resource commitment.
TPB can be applied at the firm level by treating the opinion of managers as the proxy of that of the organization. Findings are limited to the small sample size and a focus on only financial services.
Only a small group of NSD tools are used frequently in the firms surveyed. Service firms should pay more attention to the tools available and the factors associated with their adoption.
The paper identifies factors worth noticing when researchers and practitioners develop and implement NSD tools. Also, the data confirmed the appropriateness of the extension of TPB to predict organizational adoption behaviour.
