During the last decade the literature on new service development (NSD) has increased in significance, reflecting the rapidly increasing contribution of services to the economy. A growing number of researchers suggest that NSD leads to service firm competitive advantage. However, the literature on NSD-based competitive strategy is fragmented. This paper attempts to model the antecedents of NSD-based competitive strategy. Specifically, the framework presented in this paper argues that entrepreneurial intensity, distinctive learning capabilities and NSD comprise key components of a model that examines the role of NSD in gaining sustained competitive advantage in service firms. Key theoretical constructs within the model are explored and research propositions presented.
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