This study provides a dynamic perspective of new service development (NSD) project management by exploring the joint impact of project manager’s behavioural orientation, internal team dynamics and knowledge management strategies on NSD resource optimization and decision-making quality. A hierarchical research design is adopted with evidence drawn from both NSD managers and participants from several service sectors. Results illustrate the importance of internal marketing philosophy, personalization and codification strategy, team climate, role ambiguity and conflict resolution for the specific NSD outcomes.