Does service innovation process differ across cultures?

Purpose – New service development (NSD) is an important driver of growth, success and wealth of service firms in wide range of industries. Yet, few research studies have been done to investigate the issue of NSD across several geographical regions. The purpose of this paper is to report the results of a comparative cross‐national study of NSD process of financial service firms in Australia and India. Design/methodology/approach – A survey methodology was used to assess and test the similarities and differences in various NSD activities and stages of service firms in the two seemingly different types of markets. Findings – The data suggest that significant differences in NSD exist between the Australian and Indian firms. They emphasize different sets of development stages in developing new services and follow different sets strategies. Research limitations/implications – The analysis has been restricted to two countries: Australia and India. This suggests the need for further comparative studies of NSD in other cultures/countries. Practical implications – The findings of this research support the notion that some of the key NSD practices may be common to all countries and cultures whereas others must be adjusted for national variations. Originality/value – The insights from this study can help service managers from both Australia and India to better understand and manage their NSD programs in a cross‐national context.