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Customer participation and new product development outcomes: The moderating role of product innovativeness

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  • Lin, Ming-Ji James
  • Tu, Yu-Cheng
  • Chen, Der-Chao
  • Huang, Chin-Hua

Abstract

Investigation of customer participation in new product development (NPD) performance has yielded conflicting results. This study explores the idea that intensive customer participation is not always better. Instead, the usefulness of customer participation in NPD is determined by the fit between product innovativeness and customer participation as information providers and as co-developers. An empirical study of 196 NPD projects of Taiwanese high-tech firms is analyzed by structural equation modeling. The findings show that product innovativeness negatively moderates the impact of customer participation as information providers on NPD outcome. Thus, the greater the involvement of customer participation as information providers in radical innovation projects, the lower the NPD outcome. Moreover, our results also indicate that product innovativeness positively affects the relationship between customer participation as a co-developer and NPD outcome, which suggest that the more customer participation as a co-developer in a radical innovation project, the better the NPD outcome.

Suggested Citation

  • Lin, Ming-Ji James & Tu, Yu-Cheng & Chen, Der-Chao & Huang, Chin-Hua, 2013. "Customer participation and new product development outcomes: The moderating role of product innovativeness," Journal of Management & Organization, Cambridge University Press, vol. 19(3), pages 314-337, May.
    • Handle: RePEc:cup:jomorg:v:19:y:2013:i:03:p:314-337_00
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    Cited by:

    1. Mota, Renata de Oliveira & Godinho Filho, Moacir & Osiro, Lauro & Ganga, Gilberto Miller Devós & Mendes, Glauco Henrique de Sousa, 2021. "Unveiling the relationship between drivers and capabilities for reduced time-to-market in start-ups: A multi-method approach," International Journal of Production Economics, Elsevier, vol. 233(C).
    2. Todd Morgan & Sergey Alexander Anokhin & Chanho Song & Natalia Chistyakova, 2019. "The role of customer participation in building new product development speed capabilities in turbulent environments," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 119-133, March.
    3. Lu, Keying & Zou, Tengjian & Du, Jian, 2024. "Two forms of customer involvement and new product development performance in the digital context: The moderating role of new product development stage," Technovation, Elsevier, vol. 134(C).
    4. Cheng, Cong & Yang, Monica, 2019. "Creative process engagement and new product performance: The role of new product development speed and leadership encouragement of creativity," Journal of Business Research, Elsevier, vol. 99(C), pages 215-225.
    5. Susana Lopes & Alvaro Dias & Leandro Pereira & Vasco Santos, 2022. "The Outcomes of Entrepreneurship, Relational Capital and Innovativeness on Tourist Satisfaction," Sustainability, MDPI, vol. 14(20), pages 1-18, October.
    6. Sabit Veselaj & Magnus Thor Torfason, 2019. "When To Call The Customer? Timing Of Customer Involvement In The Development Of New Products And Services," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-31, January.

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