A novel performance evaluation framework for new service development in the healthcare industry using hybrid ISM and ANP
Abstract
Today, the innovative activities of companies in new service development (NSD) have an undeniable contribution to the economic development of countries. Given the recent advances in the healthcare industry, the issue of NSD and performance management of firms operating in this industry has received special attention of researchers and decision makers. A review of previous research shows that on the one hand there is no agreement among experts on NSD performance measurement criteria and on the other hand there has been no systematic framework that can measure and manage firm performance in this area. The proposed framework should allow for interaction between different decision makers, considering multiple and sometimes conflicting criteria. In this regard, this paper aimed to provide a framework to assess the NSD performance in healthcare industry using multiple-criteria-decision-making methods. The proposed model consists of 17 different criteria that have been identified and finalized based on previous studies as well as experts’ opinions. Then, the indicators are classified with the help of experts in the form of a balanced scorecard model and presented as an initial model. Due to internal relationships between criteria, this model was evaluated using interpretive structural modelling and modelled at 5 different levels. Then, the analytic network process approach was applied to determine criteria weights. Finally, new service development performance in Moheb hospital was evaluated through the framework proposed here.
Keyword : new service development, performance evaluation, ANP, ISM, healthcare industry
How to Cite
Heidary Dahooie, J., Mohammadi, N., Meidutė-Kavaliauskienė, I., & Binkytė-Vėlienė, A. . (2021). A novel performance evaluation framework for new service development in the healthcare industry using hybrid ISM and ANP. Technological and Economic Development of Economy, 27(6), 1481-1508. https://doi.org/10.3846/tede.2021.15699
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Chan, C. V., & Kaufman, D. R. (2010). A technology selection framework for supporting delivery of patient-oriented health interventions in de-veloping countries. Journal of Biomedical Informatics, 43(2), 300–306. https://doi.org/10.1016/j.jbi.2009.09.006
Cheng, C. C., & Krumwiede, D. (2012). The role of service innovation in the market orientation – new service performance linkage. Technovation, 32(7–8), 487–497. https://doi.org/10.1016/j.technovation.2012.03.006
Cheng, F., Lin, M., Yüksel, S., Dİncer, H., & Kalkavan, H. (2020). A hybrid hesitant 2-tuple IVSF decision making approach to analyze PERT-based critical paths of new service development process for renewable energy investment projects. IEEE Access, 9, 3947–3969. https://doi.org/10.1109/ACCESS.2020.3048016
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De Jong, J. P. J., & Vermeulen, P. A. M. (2003). Organizing successful new service development: A literature review. Management Decision, 41(9), 844–858. https://doi.org/10.1108/00251740310491706
Dinçer, H., & Yüksel, S. (2018). Comparative evaluation of BSC-based new service development competencies in Turkish banking sector with the integrated fuzzy hybrid MCDM using content analysis. International Journal of Fuzzy Systems, 20(8), 2497–516. https://doi.org/10.1007/s40815-018-0519-y
Elg, M., Engström, J., Witell, L., & Poksinska, B. (2012). Co‐creation and learning in health‐care service development. Journal of Service Man-agement, 23(3), 328–343. https://doi.org/10.1108/09564231211248435
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Ghani, E., & O’Connel, S. D. (2014). Can service be a growth escalator in low income countries? (Policy Research Working Paper 6971). https://doi.org/10.1596/1813-9450-6971
Giudici, G., Guerini, M., & Rossi-Lamastra, C. (2019). The creation of cleantech startups at the local level: The role of knowledge availability and environmental awareness. Small Business Economics, 52(4), 815–830. https://doi.org/10.1007/s11187-017-9936-9
Gölcük, İ., & Baykasoğlu, A. (2016). An analysis of DEMATEL approaches for criteria interaction handling within ANP. Expert Systems with Applications, 46, 346–366. https://doi.org/10.1016/j.eswa.2015.10.041
Goswami, M., Daultani, Y., & De, A. (2021). Decision modeling and analysis in new product development considering supply chain uncertainties: A multi-functional expert based approach. Expert Systems with Applications, 166, 114016. https://doi.org/10.1016/j.eswa.2020.114016
Jiménez-Zarco, A. I., Martínez-Ruiz, P., & Izquierdo-Yusta, A. (2011). The impact of market orientation dimensions on client cooperation in the development of new service innovations. European Journal of Marketing, 45(1/2), 43–67. https://doi.org/10.1108/03090561111095595
Kaplan, R., & Norton, D. (2005). The balanced scorecard: Measures That drive performance. Harvard Business Review, 83(7), 172. https://www.researchgate.net/publication/298043780_The_Balanced_Scorecard_measures_that_drive_performance
Kim, K. J., & Meiren, T. (2010). New service development process. In Introduction to service engineering (pp. 253–267). https://doi.org/10.1002/9780470569627.ch12
Kitsios, F., & Kamariotou, M. (2020). Mapping new service development: A review and synthesis of literature. The Service Industries Journal, 40(9–10), 682–704. https://doi.org/10.1080/02642069.2018.1561876
Kriegel, J., Schmitt-Rüth, S., Güntert, B., & Mallory, P. (2013). New service development in German and Austrian health care – bringing e-health services into the market. International Journal of Healthcare Management, 6(2), 77–86. https://doi.org/10.1179/2047971913Y.0000000034
Kumar, S., Luthra, S., Govindan, K., Kumar, N., & Haleem, A. (2016). Barriers in green lean six sigma product development process: An ISM approach. Production Planning & Control, 27(7–8), 604–620. https://doi.org/10.1080/09537287.2016.1165307
Lai, J., & Yuen, P. L. (2019). Performance evaluation for hospital facility management: Literature review and a research methodology. Journal of Facility Management Education and Research, 3(1), 38–43. https://doi.org/10.22361/jfmer/96267
Lee, H., Kim, C., & Park, Y. (2010). Evaluation and management of new service concepts: An ANP-based portfolio approach. Computers & In-dustrial Engineering, 58(4), 535–543. https://doi.org/10.1016/j.cie.2009.11.016
Lee, S. M., Lee, D., & Schniederjans, M. J. (2011). Supply chain innovation and organizational performance in the healthcare industry. Interna-tional Journal of Operations & Production Management, 31(11), 1193–1214. https://doi.org/10.1108/01443571111178493
Letina, I., Liu, S., & Netzer, N. (2020). Delegating performance evaluation. Theoretical Economics, 15(2), 477–509. https://doi.org/10.3982/TE3570
Lima, L., & Teixeira, J. G. (2020). The SDCS method: A new service design method for companies undergoing a servitization process. In Lecture notes in business information processing: Vol. 377. Exploring service science (pp. 245–258). Springer. https://doi.org/10.1007/978-3-030-38724-2_18
Lin, F.-R., & Hsieh, P.-S. (2011). A SAT view on new service development. Service Science, 3(2), 141–157. https://doi.org/10.1287/serv.3.2.141
Liu, C.-H., Chang, A. Y.-p., Horng, J.-S., Chou, S.-F., & Huang, Y.-C. (2020). Co-competition, learning, and business strategy for new service development. The Service Industries Journal, 40(7–8), 585–609. https://doi.org/10.1080/02642069.2019.1571045
Major, I. (2019). Two-sided information asymmetry in the healthcare industry. International Advances in Economic Research, 25(2), 177–193. https://doi.org/10.1007/s11294-019-09732-9
Melton, H. L., & Hartline, M. D. (2010). Customer and frontline employee influence on new service development performance. Journal of Service Research, 13(4), 411–425. https://doi.org/10.1177/1094670510369378
Melton, H. L., & Hartline, M. D. (2013). Employee collaboration, learning orientation, and new service development performance. Journal of Ser-vice Research, 16(1), 67–81. https://doi.org/10.1177/1094670512462139
Menor, L. J., & Roth, A. V. (2007). New service development competence in retail banking: Construct development and measurement validation. Journal of Operations Management, 25(4), 825–846. https://doi.org/10.1016/j.jom.2006.07.004
Menor, L. J., & Roth, A. V. (2008). New service development competence and performance: An empirical investigation in retail banking. Produc-tion and Operations Management, 17(3), 267–284. https://doi.org/10.3401/poms.1080.0034
Mikolajczyk, K., & Schmid, C. (2005). A performance evaluation of local descriptors. IEEE Transactions on Pattern Analysis and Machine Intel-ligence, 27(10), 1615–1630. https://doi.org/10.1109/TPAMI.2005.188
Pfohl, H. C., Gallus, P., & Thomas, D. (2011). Interpretive structural modeling of supply chain risks. International Journal of Physical Distribu-tion & Logistics Management, 41(9), 839–859. https://doi.org/10.1108/09600031111175816
Price Waterhouse Cooper. (2014). Top Health Industry Issues of 2015 – A new health economy takes shape. https://www.kpcareerplanning.org/prd/include/pwc-hri-top-healthcare-issues-2015.pdf
Purohit, J. K., Mittal, M. L., Mittal, S., & Kumar Sharma, M. (2016). Interpretive structural modeling-based framework for mass customisation enablers: An Indian footwear case. Production Planning & Control, 27(9), 774–786. https://doi.org/10.1080/09537287.2016.1166275
Saaty, T. L. (1980). The analytic heirarchy process. Wiley StatsRef: Statistics Reference Online.
Saaty, T. L. (1996). Decision making with dependence and feedback: The analytic network process. RWS Publications.
Sartor, M. (2019). The Balanced Scorecard. In Quality management: Tools, methods, and standards (pp. 55–76). Emerald Publishing Limited. https://doi.org/10.1108/9781787698017
Shyu, J. Z., Wang, J. S., Peng, C. C., & Tang, Y. H. (2012). Service innovation elements in Energy Service Company (ESCO) business model. Advanced Materials Research, 524, 3139–3153. https://doi.org/10.4028/www.scientific.net/AMR.524-527.3139
Storey, C., & Kelly, D. (2001). Measuring the performance of new service development activities. Service Industries Journal, 21(2), 71–90. https://doi.org/10.1080/714005018
Storey, C., & Hughes, M. (2013). The relative impact of culture, strategic orientation and capability on new service development performance. Eu-ropean Journal of Marketing, 47(5/6), 833–856. https://doi.org/10.1108/03090561311306903
Tseng, M. L., Lin, Y. H., Lim, M. K., & Teehankee, B. L (2015). Using a hybrid method to evaluate service innovation in the hotel industry. Ap-plied Soft Computing, 28, 411–421. https://doi.org/10.1016/j.asoc.2014.11.048
Victorino, L., Verma, R., Plaschka, G., & Dev, C. (2005). Service innovation and customer choices in the hospitality industry. Managing Service Quality: An International Journal, 15(6), 555–576. https://doi.org/10.1108/09604520510634023
Wamboye, E. F., & Nyaronga, P. J. (2018). The service sector and economic development in Africa (1st ed.). Routledge. https://doi.org/10.4324/9781315627373
Wang, W. P., & Tang, M. C. (2012). Evaluating new service development performance based on multigranular linguistic assessment. International Journal of Mechanical, Aerospace, Industrial, Mechatronic and Manufacturing Engineering, 6(7), 1313–1318.
Warfield, J. N. (1974). Developing subsystem matrices in structural modeling. IEEE Transactions on Systems, Man, and Cybernetics, SMC-4(1), 74–80. https://doi.org/10.1109/TSMC.1974.5408523
Weng, R. H., & Huang, C. Y. (2012). The impact of customer knowledge capability and relational capability on new service development perfor-mance: The case of health service. Journal of Management & Organization, 18(5), 608–624. https://doi.org/10.5172/jmo.2012.18.5.608
Yeh, T.-M., Chen, S.-H., & Chen, T.-F. (2019). The relationships among experiential marketing, service innovation, and customer satisfaction – A case study of tourism factories in Taiwan. Sustainability, 11(4), 1041. https://doi.org/10.3390/su11041041
Ying, C.-s., Li, Y.-L., Chin, K.-S., Yang, H.-T., & Xu, J. (2018). A new product development concept selection approach based on cumulative prospect theory and hybrid-information MADM. Computers & Industrial Engineering, 122, 251–261. https://doi.org/10.1016/j.cie.2018.05.023
Azar, A., Tizro, A., Moghbel, A., & Rostami, A. A. R. (2010). Designing supply chain agile model: Interpretive structural modeling approach. Management Researches in Iran, 14(4), 1–25.
Behdioğlu, S., Acar, E., & Burhan, H. A. (2019). Evaluating service quality by fuzzy SERVQUAL: A case study in a physiotherapy and rehabilita-tion hospital. Total Quality Management & Business Excellence, 30(3–4), 301–319. https://doi.org/10.1080/14783363.2017.1302796
Bendoly, E., Bharadwaj, A., & Bharadwaj, S. (2012). Complementary drivers of new product development performance: Cross‐functional coordi-nation, information system capability, and intelligence quality. Production and Operations Management, 21(4), 653–667. https://doi.org/10.1111/j.1937-5956.2011.01299.x
Blindenbach‐Driessen, F., van Dalen, J., & van den Ende, J. (2010). Subjective performance assessment of innovation projects. Journal of Product Innovation Management, 27(4), 572–592. https://doi.org/10.1111/j.1540-5885.2010.00736.x
Busagara, T., Mori, N., Mossberg, L., Jani, D., & Andersson, T. (2020). Customer information sharing and new service development: Is there a link? The Bottom Line, 33(2), 133–147. https://doi.org/10.1108/BL-09-2019-0112
Chan, C. V., & Kaufman, D. R. (2010). A technology selection framework for supporting delivery of patient-oriented health interventions in de-veloping countries. Journal of Biomedical Informatics, 43(2), 300–306. https://doi.org/10.1016/j.jbi.2009.09.006
Cheng, C. C., & Krumwiede, D. (2012). The role of service innovation in the market orientation – new service performance linkage. Technovation, 32(7–8), 487–497. https://doi.org/10.1016/j.technovation.2012.03.006
Cheng, F., Lin, M., Yüksel, S., Dİncer, H., & Kalkavan, H. (2020). A hybrid hesitant 2-tuple IVSF decision making approach to analyze PERT-based critical paths of new service development process for renewable energy investment projects. IEEE Access, 9, 3947–3969. https://doi.org/10.1109/ACCESS.2020.3048016
Cowell, D. W. (1988). New service development. Journal of Marketing Management, 3(3), 296–312. https://doi.org/10.1080/0267257X.1988.9964048
De Jong, J. P. J., & Vermeulen, P. A. M. (2003). Organizing successful new service development: A literature review. Management Decision, 41(9), 844–858. https://doi.org/10.1108/00251740310491706
Dinçer, H., & Yüksel, S. (2018). Comparative evaluation of BSC-based new service development competencies in Turkish banking sector with the integrated fuzzy hybrid MCDM using content analysis. International Journal of Fuzzy Systems, 20(8), 2497–516. https://doi.org/10.1007/s40815-018-0519-y
Elg, M., Engström, J., Witell, L., & Poksinska, B. (2012). Co‐creation and learning in health‐care service development. Journal of Service Man-agement, 23(3), 328–343. https://doi.org/10.1108/09564231211248435
Fiordelli, M., Diviani, N., & Schulz, P. J. (2013). Mapping mHealth research: A decade of evolution. Journal of Medical Internet Research, 15(5), e95. https://doi.org/10.2196/jmir.2430
Fitzsimmons, J. A., & Fitzsimmons, M. J. (2006). Service management: Operations, strategy, and information technology. McGraw-Hill/Irwin. https://books.google.lt/books/about/Service_Management.html?id=3Km1AAAAIAAJ&redir_esc=y
Ghani, E., & O’Connel, S. D. (2014). Can service be a growth escalator in low income countries? (Policy Research Working Paper 6971). https://doi.org/10.1596/1813-9450-6971
Giudici, G., Guerini, M., & Rossi-Lamastra, C. (2019). The creation of cleantech startups at the local level: The role of knowledge availability and environmental awareness. Small Business Economics, 52(4), 815–830. https://doi.org/10.1007/s11187-017-9936-9
Gölcük, İ., & Baykasoğlu, A. (2016). An analysis of DEMATEL approaches for criteria interaction handling within ANP. Expert Systems with Applications, 46, 346–366. https://doi.org/10.1016/j.eswa.2015.10.041
Goswami, M., Daultani, Y., & De, A. (2021). Decision modeling and analysis in new product development considering supply chain uncertainties: A multi-functional expert based approach. Expert Systems with Applications, 166, 114016. https://doi.org/10.1016/j.eswa.2020.114016
Jiménez-Zarco, A. I., Martínez-Ruiz, P., & Izquierdo-Yusta, A. (2011). The impact of market orientation dimensions on client cooperation in the development of new service innovations. European Journal of Marketing, 45(1/2), 43–67. https://doi.org/10.1108/03090561111095595
Kaplan, R., & Norton, D. (2005). The balanced scorecard: Measures That drive performance. Harvard Business Review, 83(7), 172. https://www.researchgate.net/publication/298043780_The_Balanced_Scorecard_measures_that_drive_performance
Kim, K. J., & Meiren, T. (2010). New service development process. In Introduction to service engineering (pp. 253–267). https://doi.org/10.1002/9780470569627.ch12
Kitsios, F., & Kamariotou, M. (2020). Mapping new service development: A review and synthesis of literature. The Service Industries Journal, 40(9–10), 682–704. https://doi.org/10.1080/02642069.2018.1561876
Kriegel, J., Schmitt-Rüth, S., Güntert, B., & Mallory, P. (2013). New service development in German and Austrian health care – bringing e-health services into the market. International Journal of Healthcare Management, 6(2), 77–86. https://doi.org/10.1179/2047971913Y.0000000034
Kumar, S., Luthra, S., Govindan, K., Kumar, N., & Haleem, A. (2016). Barriers in green lean six sigma product development process: An ISM approach. Production Planning & Control, 27(7–8), 604–620. https://doi.org/10.1080/09537287.2016.1165307
Lai, J., & Yuen, P. L. (2019). Performance evaluation for hospital facility management: Literature review and a research methodology. Journal of Facility Management Education and Research, 3(1), 38–43. https://doi.org/10.22361/jfmer/96267
Lee, H., Kim, C., & Park, Y. (2010). Evaluation and management of new service concepts: An ANP-based portfolio approach. Computers & In-dustrial Engineering, 58(4), 535–543. https://doi.org/10.1016/j.cie.2009.11.016
Lee, S. M., Lee, D., & Schniederjans, M. J. (2011). Supply chain innovation and organizational performance in the healthcare industry. Interna-tional Journal of Operations & Production Management, 31(11), 1193–1214. https://doi.org/10.1108/01443571111178493
Letina, I., Liu, S., & Netzer, N. (2020). Delegating performance evaluation. Theoretical Economics, 15(2), 477–509. https://doi.org/10.3982/TE3570
Lima, L., & Teixeira, J. G. (2020). The SDCS method: A new service design method for companies undergoing a servitization process. In Lecture notes in business information processing: Vol. 377. Exploring service science (pp. 245–258). Springer. https://doi.org/10.1007/978-3-030-38724-2_18
Lin, F.-R., & Hsieh, P.-S. (2011). A SAT view on new service development. Service Science, 3(2), 141–157. https://doi.org/10.1287/serv.3.2.141
Liu, C.-H., Chang, A. Y.-p., Horng, J.-S., Chou, S.-F., & Huang, Y.-C. (2020). Co-competition, learning, and business strategy for new service development. The Service Industries Journal, 40(7–8), 585–609. https://doi.org/10.1080/02642069.2019.1571045
Major, I. (2019). Two-sided information asymmetry in the healthcare industry. International Advances in Economic Research, 25(2), 177–193. https://doi.org/10.1007/s11294-019-09732-9
Melton, H. L., & Hartline, M. D. (2010). Customer and frontline employee influence on new service development performance. Journal of Service Research, 13(4), 411–425. https://doi.org/10.1177/1094670510369378
Melton, H. L., & Hartline, M. D. (2013). Employee collaboration, learning orientation, and new service development performance. Journal of Ser-vice Research, 16(1), 67–81. https://doi.org/10.1177/1094670512462139
Menor, L. J., & Roth, A. V. (2007). New service development competence in retail banking: Construct development and measurement validation. Journal of Operations Management, 25(4), 825–846. https://doi.org/10.1016/j.jom.2006.07.004
Menor, L. J., & Roth, A. V. (2008). New service development competence and performance: An empirical investigation in retail banking. Produc-tion and Operations Management, 17(3), 267–284. https://doi.org/10.3401/poms.1080.0034
Mikolajczyk, K., & Schmid, C. (2005). A performance evaluation of local descriptors. IEEE Transactions on Pattern Analysis and Machine Intel-ligence, 27(10), 1615–1630. https://doi.org/10.1109/TPAMI.2005.188
Pfohl, H. C., Gallus, P., & Thomas, D. (2011). Interpretive structural modeling of supply chain risks. International Journal of Physical Distribu-tion & Logistics Management, 41(9), 839–859. https://doi.org/10.1108/09600031111175816
Price Waterhouse Cooper. (2014). Top Health Industry Issues of 2015 – A new health economy takes shape. https://www.kpcareerplanning.org/prd/include/pwc-hri-top-healthcare-issues-2015.pdf
Purohit, J. K., Mittal, M. L., Mittal, S., & Kumar Sharma, M. (2016). Interpretive structural modeling-based framework for mass customisation enablers: An Indian footwear case. Production Planning & Control, 27(9), 774–786. https://doi.org/10.1080/09537287.2016.1166275
Saaty, T. L. (1980). The analytic heirarchy process. Wiley StatsRef: Statistics Reference Online.
Saaty, T. L. (1996). Decision making with dependence and feedback: The analytic network process. RWS Publications.
Sartor, M. (2019). The Balanced Scorecard. In Quality management: Tools, methods, and standards (pp. 55–76). Emerald Publishing Limited. https://doi.org/10.1108/9781787698017
Shyu, J. Z., Wang, J. S., Peng, C. C., & Tang, Y. H. (2012). Service innovation elements in Energy Service Company (ESCO) business model. Advanced Materials Research, 524, 3139–3153. https://doi.org/10.4028/www.scientific.net/AMR.524-527.3139
Storey, C., & Kelly, D. (2001). Measuring the performance of new service development activities. Service Industries Journal, 21(2), 71–90. https://doi.org/10.1080/714005018
Storey, C., & Hughes, M. (2013). The relative impact of culture, strategic orientation and capability on new service development performance. Eu-ropean Journal of Marketing, 47(5/6), 833–856. https://doi.org/10.1108/03090561311306903
Tseng, M. L., Lin, Y. H., Lim, M. K., & Teehankee, B. L (2015). Using a hybrid method to evaluate service innovation in the hotel industry. Ap-plied Soft Computing, 28, 411–421. https://doi.org/10.1016/j.asoc.2014.11.048
Victorino, L., Verma, R., Plaschka, G., & Dev, C. (2005). Service innovation and customer choices in the hospitality industry. Managing Service Quality: An International Journal, 15(6), 555–576. https://doi.org/10.1108/09604520510634023
Wamboye, E. F., & Nyaronga, P. J. (2018). The service sector and economic development in Africa (1st ed.). Routledge. https://doi.org/10.4324/9781315627373
Wang, W. P., & Tang, M. C. (2012). Evaluating new service development performance based on multigranular linguistic assessment. International Journal of Mechanical, Aerospace, Industrial, Mechatronic and Manufacturing Engineering, 6(7), 1313–1318.
Warfield, J. N. (1974). Developing subsystem matrices in structural modeling. IEEE Transactions on Systems, Man, and Cybernetics, SMC-4(1), 74–80. https://doi.org/10.1109/TSMC.1974.5408523
Weng, R. H., & Huang, C. Y. (2012). The impact of customer knowledge capability and relational capability on new service development perfor-mance: The case of health service. Journal of Management & Organization, 18(5), 608–624. https://doi.org/10.5172/jmo.2012.18.5.608
Yeh, T.-M., Chen, S.-H., & Chen, T.-F. (2019). The relationships among experiential marketing, service innovation, and customer satisfaction – A case study of tourism factories in Taiwan. Sustainability, 11(4), 1041. https://doi.org/10.3390/su11041041
Ying, C.-s., Li, Y.-L., Chin, K.-S., Yang, H.-T., & Xu, J. (2018). A new product development concept selection approach based on cumulative prospect theory and hybrid-information MADM. Computers & Industrial Engineering, 122, 251–261. https://doi.org/10.1016/j.cie.2018.05.023