Internal Market Orientation Adoption: Why and how it is important for New Service Development

New service development (NSD) literature is void when it comes to the drivers that explain the NSD

team’s ability to successfully deliver the new service. We develop a conceptual framework suggesting that

the adoption of internal market orientation (IMO) influences the dynamics of the NSD team, which in turn

impact on its performance by allowing the team to better use the kind and amount of resources the

management allocated in the NSD effort. We test this framework against 116 NSD managers and 543

NSD team members. The results demonstrate the importance of adopting IMO as a nomological

antecedent to the NSD team’s ability to successfully deliver the new service. We produce fresh insights of

the importance the management of the NSD team for new service success and the profound impact of

IMO adoption, laying the ground for HR to form strong bridges with marketing.