It has often been advocated that successful new service (product) development groups should bind into a cohesive unit, sharing a common direction and vision. This suggests close connections and communication between members of the department. The authors conducted two communication network studies to examine the impact of interpersonal communication (i.e., within team, cross team, and cross company) on market and technological learning during new financial service development within the marketing department of banks. They conclude that close cooperation, signified by a strong integration and a central position within the communication network, could be detrimental for learning activities. For service innovation management, the biggest challenge seems to be the preservation of heterogeneity and diversity among individuals and groups both within and across the marketing department to ensure learning. Both boundary-spanning communication and the presence of individuals within loosely coupled marketing networks seem effective communication conditions to obtain a rich learning environment.
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