Strategic change as a progenitor of new service development

This research focuses on how the implementation of strategic change can lead to new service development. To this end we examine a technology-based SME that implemented a new strategy of corporate social responsibility (CSR) and how this strategic change led to the development of a new service offering. There is increasing pressure on SMEs – pressure that was previously felt mostly by large multi-national firms – to demonstrate social responsibility. As a result SMEs are increasingly adopting some form of CSR to remain competitive. Although there has been research on CSR in large firms, less is known about how CSR can be implemented in SMEs and what the implications and opportunities are. This research focuses specifically on CSR as a progenitor of new service development (NSD) in SMEs. Using in-depth longitudinal case research we examine the journey of an SME from its initial interest in CSR, through the implementation of a CSR strategy and on to the development of a new service based on the new thinking that came about as a result of the CSR implementation. While explorative, the examination of this case provides some initial indication about not only how SMEs can implement CSR strategies to good effect but, of particular interest, how implementing a CSR strategy can form the basis for the development of services that fall outside a SMEs’ previous scope of activities. Based on this research we find that in the SME studied the main driver of an idea for a new service and its subsequent successful implementation was the new thinking brought about as a result of the process of implementing a CSR strategy. For managers, this research offers suggestions about what kinds of activities and decision-making are needed to successfully implement CSR and how CSR implementation can be leveraged to instigate a change in corporate culture resulting in new ideas about services that can appeal to new (types of) customers and market segments.