Knowledge Transfer Between Fornt And Back Office In Introduction Stage Of New Service Development

China has become the fastest growing economy in the world. The rapid economic development has led to increasingly strong demand for modern services, such as the financial services. However, domestic service delivery capacity can not meet the needs of businesses and residents. In recent years, as a key component of China’s financial industry, Chinese commercial banking has continuously enhanced with increasingly competition. The small and medium banking (SMB) should develop new service to survive.It is the routine in service operation that the coupling of front and back office. There are many differences between front office and back office, including labor intensity, personnel certification, salary level, and organizational culture, etc. Therefore, there is not enough in communication in knowledge transfer between front and back office always. Especially, personnel in front office can not promote the new service very well in launch stage of new service development (NSD). Although many service enterprises (especially banking) put heavy effort on launch, they still did not emphasis the knowledge transfer between front and back office nowadays.We employed case study to explore the mechanism of knowledge transfer between the front and back offices in SMB’s introduction stage of NSD launch. First, we established a preliminary model. Second, we choose U bank and T bank as cases. Then, after "within-case analysis" and "multiple case study", we presented a result model. Furthermore, the moderating effects of the trust relationship and organizational culture have been proved. The conclusions are as follow. First, personnel training of introduction stage have a positive impact on knowledge transfer capability and knowledge absorb willing of front office. Second, small-scale testing has a positive impact on knowledge absorb willing of back office. Third, launch has a positive impact on knowledge absorb willing of front office. Fourth, tracking improvements has a positive impact on knowledge absorb willing of back office. Fifth, knowledge transfer between the front and back offices has positive impact on new service development performance. It means while the banks do well in personnel training, small-scale testing, market launch, tracking improvements of introduction stage of new service development, there will be high the degree of knowledge transfer between the front and back and high new service development performance.For the moderating effects, organizational culture positively moderates the relationship between the launch and knowledge transfer between the front and back offices. And trust relationship positively moderates the relationship between the launch and knowledge transfer between front and back offices.. It means while there is organizational culture which encourages communication and trust relationship in the banks, the degree of knowledge transfer between the front and back will be high.There are four managerial implications. First, SMB should pay more attention to and improve the personnel training, small-scale testing, market launch, tracking improvements of introduction stage of new service development. Second, for knowledge transfer between front and back offices, the key points are the knowledge absorb willing of front and back offices. Third, SMB should strengthen the organizational culture, and nurture the atmosphere of trust relationships in introduction stage NSI). Fourth. SMB should accumulate the various types of knowledge in NSI) especially.