The need for developing new services organically is well recognized. Extant review of literature reveals that various issues pertaining to NSD (New Service Development)/Service innovation like NSD initiation strategies, internal functional integration, need for simultaneous involvement of employees, evaluation of NSD and measuring the performance of new service, leadership role, role of customers, communication, factors influencing innovative co-worker behavior, etc., have been investigated.

However, in comparison to New Product Development (NPD), New Service Development (NSD) has received significantly less attention. Innovations that are initiated and implemented by individuals have been largely bypassed as most of the studies have investigated NSD at firm level or project level. This lack of attention is in-spite of the recognition that employees (customer contact employees in case of service firms) can be major contributors of blockbuster new ideas.

Notwithstanding the benefits, the role of customer contact employees in the new service development stands largely under investigated. In this paper, an attempt has been made to understand the potential contributions front-line personnel can make, and empirically testable propositions are presented based on the extant review of literature