The Research On The Relationship About Front Office And Back Office’ Knowledge Transfer And New Service Development Performance In Financial Industry

The knowledge owned by customers is one of the key resources to develop new financial services. Financial sectors usually improve their professional level and the speed and quality of new service development by separating the departments into front office and back office. Among them, the front office is responsible for customer reception and communication. They get customer’s demands and decide the knowledge related to new service development. Back office is responsible for the professional development of new service. How financial institutions effectively promote the knowledge transfer between front and back office so as to improve the new service development performance needs to be further explored. And how the dynamic capability influences the relationship between knowledge transfer and new service development performance also needs to be studied.In order to explore the relationship between knowledge transfer and new service development performance in financial enterprises, this study selects four small and medium-sized banks as cases. The results of case study shows that the willingness, opportunities and capability of knowledge transfer can improve the financial performance and relationship performance both of which constitute new service development performance. And the results of case study also indicate that dynamic capability can enhance the relationship between knowledge transfer and new service development performance. Based on this, the paper presents two initial propositions.On the basis of the propositions, the paper combines related theories and proposes specific hypothesis. There are two hypotheses. First, the knowledge transfer between front offices and back offices will positively influence new service development performance. Second, dynamic capability can moderate the relationship between knowledge transfer and new service development performance. Integrating the results of case study and related theories, the paper puts forward the measuring items of each variable. The paper distributes 85 questionnaires to conduct a small sample test. Based on the test, the paper refines the questionnaire. Then the author distributes questionnaires in large scale and collects 245 valid questionnaires. The hypothesis about knowledge transfer and new service development performance are all verified. The majority of hypothesis about the moderating effect of dynamic capabilities are verified. We can consider that the propositions and hypotheses are verified. Thus the paper verifies the relationship between knowledge transfer and new service development performance and the moderating effect of dynamic capability.The conclusions of this study have a certain significance in both theories and practices. First the financial institutions should not only focus on the financial performance of new service development, but also should focus on the relationship performance. Second the study helps to further clarify the process of knowledge transfer between front offices and back offices. The willingness, opportunity and capacity of knowledge transfer between front and back offices have different effects on the financial performance and relationship performance. In practice, we should pay more attention to the willingness and capacity of knowledge transfer which have a greater impact. Third dynamic capability has a strong moderating effect on the new service development performance. Financial institutions should pay attention to the cultivation of dynamic capability in practice, so as to enhance the performance of knowledge transfer. Of course, there are some problems in this study such as the number of questionnaire, the social desirability and the representative of cases which may influence generalized validity of the results. Bilateral knowledge transfer and internal and external interaction effect should be explored in the future.