Using a Large-Scale Survey and PLS-SEM to Explore the Importance of Standardized Service Development Processes for Micro, Small, and Medium-Sized Organizations

This research took place at an Irish higher education institution. Its focus was addressing confusion regarding the impact of new service development performance (NSDP) on organizational performance (OP) for micro, small, and medium-sized enterprises (MSMEs), respectively, and how standardized service development processes (SSDPs) affected this relationship. A survey methodology was employed, and data from 801 MSMEs were analyzed using partial least squares structural equation modelling (PLS-SEM) and multigroup analysis. This choice of analysis was selected as it is robust when data are non-normally distributed and is ideal for causal-predictive analyses. The research shows that while there a strong positive relationship between NSDP and OP for each of the size groups, reporting the magnitude of this relationship for each of these distinct groups for the first time, the moderating effect of SSDPs was not supported for micro and medium-sized organizations. The results indicate that small service organizations can benefit from introducing standardized processes for service development. These will improve the reliability and predictability with which they introduce new services and enhance their overall performance.