| With the development of the globalization of world economy and the arrival of New-economy, the service sector is gradually taking up a dominating position in the world economy. The so-called "Service Economy" has come forth. for example, in Organization for Economic Co-operation and Development (OECD) of the 30 member countries, GDP value added in services accounting for the proportion of totall more than 70%. The international competitiveness of one country or region’s economic in the future depends largely on the services sector in the global competitive strength, while the services sector, Internationalization of the services sector increased the level of service enterprises are facing more intense competition in the market. Service innovation become an important source of competitive advantage. But many scholars have pointed out, as have some of the characteristics of services (intangibility, heterogeneity, inseparability, perishability), service innovation is different from tangible product innovation within the manufacturing industry or technology innovation, the difference is that customer orientation of service innovation is more obvious and prominent.However, the mention of innovation in the tradition of innovation theory we think it is independent innovation of enterprises. Innovation innovation entitie is the main business or organization itself. but often neglect the other main subject of innovation, or other participation in the innovation process. In fact, with "open innovation" is gradually increasing and has become the trend of innovation led model. Customer innovation and customer involvement or participation in innovative has gradually been emphasized by scholars. But the customers involved in innovative research is still young, and mostly concentrated in the customer involved in the research of new product development. customer participation in the development of new services is relatively less basic in the initial stage, as some scholars (Seliina Paallysaho 2008) pointed out:" Despite extensive research in the field, knowledge remains fragmented". Existing study on customer participation in the development of new services is not only small and only the direct effect. But few study is focuses on the mechanism of the impact of customer involvement in new service development on new service development performance. So it is very necessary to fully understand how customer involvement may influence new service development performance. In doing so, the disseration mainly analyzes the mediating mechanism of the impact of customer involvement on service development performance.Based on the review of relevant literature, Intergating the theories of relationship marketing, customer involvement and social capital, this dissertation develops a model and framework for the relationships among customer participation in new service development, social capital and new service development performance. There are mainly three concepts in this dissertation as follows: customer involvement in new service development, social capital and new service development performance. Since most of the three core constructs are complex constructs and correlated measurements have been given in many studies, Appropriate dimensions are divided based on comprehensive analysis. Customer involvement in new service development is divided into four dimensions:involvement in breadth, degree of involvement, information sharing and joint development structural capital and relational capital are the two dimensions of social capital. New service development performance is divided into three dimensions:time performance, innovation performance and financial performance. Because all the scales are from foreign literature, considering the complexity of the Chinese cultural, this dissertation adopts operationable and multiple-indicator scales to measure every variable in order to investigate the mechanism of the impact of customer involvement in new service development on new service development performance. Service enterprises of China as the sampling object, through various forms of data collection we got total of 236 valid questionnaires. Based on validated questionnaire reliability and validity, we analyzed the data and confirmed hypotheses which was proposedThe results showed:Customer involvement in new service development has a positive impact on time performance and innovation performance. It means that all of the involvement dimensions, degree and breadth of participation, information sharing and joint development, has a positive impact on the speed of new services to market and the novelty of new service; the mediating effects of structural capital on the relationships between customer involvement in new service development and new service development time performance and innovation performance are significant. the mediating effects of relational capital on the relationships between the two dimensions of customer involvement in new service development(information sharing and joint development)and new service development time performance and innovation performance are significant.The result of this research has important implications for management. Customer involvement in new service development has an important impact on its performance. By engaging a limited number of specially selected customers and working closely with them in the new service development process, some of the stated problems of innovation can be minimized. In order to allow customers to better involve, enterprises not only need to give incentives to some customers, but also to make improvements in various aspects, corporate culture, organizational structure, management systems and processes. At the same time, facilitate the participation of customers and ultimately drive the formation of new service development model.
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