Which factors influence formalization in new services development processes?

Current literature revealed that formalization in New Service Development (NSD) processes contribute significantly to the NSD success. If this is true, then why companies are not tending to implement formalized NSD processes? At the same time a review of the current literature shows that formalization in NSD processes are rare in most service firms. This study is aiming to investigate which factors influence the degree of formalization in NSD processes? A mail survey was conducted in seven European countries and in Mexico. In total 1333 companies participated in the study from a wide range of service industries. Multiple linear regression model was estimated and its assumptions were tested. The model predicted that explicit service strategy, type of service, type of innovation, and customer integration are positively influencing the degree of NSD process formalization.