A study on the coordination incentive strategy of new service development

In purpose of running new service development (NSD) better, service enterprises should establish an intimate relationship with relevant external subjects. How to acquire maximal benefits from the collaborative network through incentive is a problem to be solved immediately. This paper proposes a collaborative network of NSD among service enterprise, customers, suppliers, agents and competitors. A coordination incentive model of service enterprises is offered based on information sharing using the principal-agent theory. The model is analyzed from three aspects: external environment, network characteristics and network subjects. Finally, this paper provides some rational incentive strategies for service firms.