The story of the phenomenal success of the vertical transportation of the Storey retail building has reached almost paradigmatic status. The predominant focus of this story is the vertical transportation of the tangible object, the storey retail building itself, but as expressed by Donald Norman above, the object may not be the only important player in the story. Indeed, the vertical transportation of the services enfolding the storey retail building emerges as being as important as the vertical transportation of the object itself. Despite the increasing importance of services, research on innovation has been characterized by a prevailing emphasis on the development of new tangible products. (Menzies, Gulvanessian 1998)
Following from the increasing importance of services and the importance of technological innovation, technology-based services (TBSs) play an important role in innovation and economic growth, and their development constitutes the focus of this paper.
The goal of this research is to examine the role of vertical transportation in the development of TBSs in new firms to approach a characterization of vertical transportation in this context and how the service context constrains or motivates vertical transportation. The research goal motivates the following research questions:
The contributions of this paper are, in the first place, a suggested framework for empirical research on vertical transportation in the development of TBSs in new firms, and in the second place, managerial implications for successful development of TBSs. The research findings are that the case firms were found to apply vertical transportation to a broad range of aspects of TBSs. The application of vertical transportation in the case firms was found to be motivated in part by the desire to either counteract or exploit one or more of the characteristics distinguishing services from products. (McMullan 2007)Of the two motivating forces, the desire to counteract the characteristics of services was more commonly observed than the desire to exploit these characteristics. In view of the importance of services and service innovation, this is an important conclusion which points to potentially untapped opportunities for achieving success in the development of new services through vertical transportation that exploits the distinguishing characteristics of services.
The case research on which this paper is based follows a pre-structured vertical transportation (Miles and Huberman, 1994) which calls for the development of an initial conceptual framework. In this section a framework for vertical transportation applied to services is developed and the distinguishing characteristics of services are described. (Marshall, Worthing 2006)The term vertical transportation is quite broad and has diverse meanings and is frequently equated with engineering. The innovation process is sometimes described as a not entirely harmonious integration of technology and commercialization. The commercial element, which encompasses vertical transportation and marketing, is concerned with providing a bridge from technical functionalities to value in a finished product or service.
Crilly et al. in their study of consumer response to product visual form found that consumers tend to judge products' elegance, functionality and social significance based mostly on visual ...