IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v156y2023ics0148296322009444.html
   My bibliography  Save this article

Does customer participation moderate the effects of innovation on cost-based financial performance? An examination of different forms of customer participation

Author

Listed:
  • Yuk, Hyeyeon
  • Garrett, Tony C.

Abstract

Although the importance of customer participation in innovation is recognized in theoretical and managerial fields, few studies have shed light on the interaction effects of different forms of customer participation on the relationship between a firm’s innovation orientation and cost-based financial performance. This study empirically examined the moderating effect of customer participation as information providers (CPI), co-developers (CPC), and innovators (CPN), on the relationship between a firm’s innovation orientation and cost-based financial performance. We focus on two types of innovation orientation: exploitative and exploratory innovation. Finally, we used data from 272 manufacturing industry respondents of the Korean Innovation Survey. The results show a non-linear U-shaped relationship between exploitative innovation and financial performance. Further, CPI (CPN) positively (negatively) moderates this relationship. This study provides important theoretical and managerial implications for adopting and managing customer participation in a firm’s innovation orientation.

Suggested Citation

  • Yuk, Hyeyeon & Garrett, Tony C., 2023. "Does customer participation moderate the effects of innovation on cost-based financial performance? An examination of different forms of customer participation," Journal of Business Research, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:jbrese:v:156:y:2023:i:c:s0148296322009444
    DOI: 10.1016/j.jbusres.2022.113479
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296322009444
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2022.113479?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Karen L. Janssen & Ben Dankbaar, 2008. "Proactive Involvement Of Consumers In Innovation: Selecting Appropriate Techniques," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 511-541.
    2. Joel A. C. Baum & Robin Cowan & Nicolas Jonard, 2010. "Network-Independent Partner Selection and the Evolution of Innovation Networks," Management Science, INFORMS, vol. 56(11), pages 2094-2110, November.
    3. Thomas Ritter, 2021. "Enabling organizational value-chain processes through network capability," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 31(3), pages 354-371, July.
    4. Justin J. P. Jansen & Frans A. J. Van Den Bosch & Henk W. Volberda, 2006. "Exploratory Innovation, Exploitative Innovation, and Performance: Effects of Organizational Antecedents and Environmental Moderators," Management Science, INFORMS, vol. 52(11), pages 1661-1674, November.
    5. Aaron K. Chatterji & Kira R. Fabrizio, 2014. "Using users: When does external knowledge enhance corporate product innovation?," Strategic Management Journal, Wiley Blackwell, vol. 35(10), pages 1427-1445, October.
    6. Jeppesen, Lars Bo & Laursen, Keld, 2009. "The role of lead users in knowledge sharing," Research Policy, Elsevier, vol. 38(10), pages 1582-1589, December.
    7. Konstantinos Grigoriou & Frank T. Rothaermel, 2017. "Organizing for knowledge generation: internal knowledge networks and the contingent effect of external knowledge sourcing," Strategic Management Journal, Wiley Blackwell, vol. 38(2), pages 395-414, February.
    8. Gautam Ahuja & Curba Morris Lampert, 2001. "Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 521-543, June.
    9. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    10. Hee‐Jae Cho & Vladimir Pucik, 2005. "Relationship between innovativeness, quality, growth, profitability, and market value," Strategic Management Journal, Wiley Blackwell, vol. 26(6), pages 555-575, June.
    11. Gaylen N. Chandler & Chalon Keller & Douglas W. Lyon, 2000. "Unraveling the Determinants and Consequences of an Innovation-Supportive Organizational Culture," Entrepreneurship Theory and Practice, , vol. 25(1), pages 59-76, October.
    12. Africa Ariño & Peter Smith Ring, 2010. "The role of fairness in alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 31(10), pages 1054-1087, October.
    13. Rebecca Henderson & Iain Cockburn, 1994. "Measuring Competence? Exploring Firm Effects in Pharmaceutical Research," Strategic Management Journal, Wiley Blackwell, vol. 15(S1), pages 63-84, December.
    14. Lee, Ryeowon & Lee, Jong-Ho & Garrett, Tony C., 2019. "Synergy effects of innovation on firm performance," Journal of Business Research, Elsevier, vol. 99(C), pages 507-515.
    15. Abbie Griffin & John R. Hauser, 1993. "The Voice of the Customer," Marketing Science, INFORMS, vol. 12(1), pages 1-27.
    16. Juha Uotila & Markku Maula & Thomas Keil & Shaker A. Zahra, 2009. "Exploration, exploitation, and financial performance: analysis of S&P 500 corporations," Strategic Management Journal, Wiley Blackwell, vol. 30(2), pages 221-231, February.
    17. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    18. Jürgen Kai-Uwe Brock, 2021. "The emergence and implications of Technologized Marketing," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 31(3), pages 372-391, July.
    19. Kyung Hoon Kim & Eunju Ko & Sang Jin Kim & Qi Jiang, 2021. "Digital service innovation, customer engagement, and customer equity in AR marketing," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 31(3), pages 453-466, July.
    20. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    21. Morgan, Todd & Obal, Michael & Anokhin, Sergey, 2018. "Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies," Research Policy, Elsevier, vol. 47(2), pages 498-510.
    22. Daniel A. Levinthal & James G. March, 1993. "The myopia of learning," Strategic Management Journal, Wiley Blackwell, vol. 14(S2), pages 95-112, December.
    23. Jose-Luis Hervas-Oliver & Francisca Sempere-Ripoll & Carles Boronat-Moll, 2014. "Process innovation strategy in SMEs, organizational innovation and performance: a misleading debate?," Small Business Economics, Springer, vol. 43(4), pages 873-886, December.
    24. Nishikawa, Hidehiko & Schreier, Martin & Ogawa, Susumu, 2013. "User-generated versus designer-generated products: A performance assessment at Muji," International Journal of Research in Marketing, Elsevier, vol. 30(2), pages 160-167.
    25. Nusser Raajpoot & Arun Sharma, 2021. "The function of innovation culture in the success of new services," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 31(3), pages 392-414, July.
    26. Chang, Woojung, 2019. "The joint effects of customer participation in various new product development stages," European Management Journal, Elsevier, vol. 37(3), pages 259-268.
    27. Jinwoo Ahn & Taeseok Rho, 2021. "The effect of customer participation in service industry on encounter satisfaction by the development of relationship," Journal of Global Scholars of Marketing Science, Taylor & Francis Journals, vol. 31(1), pages 94-120, January.
    28. Anna S. Cui & Fang Wu, 2016. "Utilizing customer knowledge in innovation: antecedents and impact of customer involvement on new product performance," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 516-538, July.
    29. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Gupta, Shivam & Sivarajah, Uthayasankar & Bag, Surajit, 2023. "Assessing the impact of big data analytics on decision-making processes, forecasting, and performance of a firm," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    2. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Guktae Kim & Moon-Goo Huh, 2015. "Exploration and organizational longevity: The moderating role of strategy and environment," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 389-414, June.
    2. Jatinder S. Sidhu & Harry R. Commandeur & Henk W. Volberda, 2007. "The Multifaceted Nature of Exploration and Exploitation: Value of Supply, Demand, and Spatial Search for Innovation," Organization Science, INFORMS, vol. 18(1), pages 20-38, February.
    3. Sebastian Raisch & Julian Birkinshaw & Gilbert Probst & Michael L. Tushman, 2009. "Organizational Ambidexterity: Balancing Exploitation and Exploration for Sustained Performance," Organization Science, INFORMS, vol. 20(4), pages 685-695, August.
    4. Belderbos, Rene & Faems, Dries & Leten, Bart & Van Looy, Bart, 2009. "Technological activities and their impact on the financial performance of the firm: Exploitation and exploration within and between firms," MERIT Working Papers 2009-067, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Choo Yeon Kim & Myung Sub Lim & Jae Wook Yoo, 2019. "Ambidexterity in External Knowledge Search Strategies and Innovation Performance: Mediating Role of Balanced Innovation and Moderating Role of Absorptive Capacity," Sustainability, MDPI, vol. 11(18), pages 1-23, September.
    6. Khan, Zaheer & Lew, Yong Kyu & Marinova, Svetla, 2019. "Exploitative and exploratory innovations in emerging economies: The role of realized absorptive capacity and learning intent," International Business Review, Elsevier, vol. 28(3), pages 499-512.
    7. Jingoo Kang & Sang‐Joon Kim, 2020. "Performance implications of incremental transition and discontinuous jump between exploration and exploitation," Strategic Management Journal, Wiley Blackwell, vol. 41(6), pages 1083-1111, June.
    8. Young Rok Choi & Seongwook Ha & Youngbae Kim, 2022. "Innovation ambidexterity, resource configuration and firm growth: is smallness a liability or an asset?," Small Business Economics, Springer, vol. 58(4), pages 2183-2209, April.
    9. Andreea N. Kiss & Dirk Libaers & Pamela S. Barr & Tang Wang & Miles A. Zachary, 2020. "CEO cognitive flexibility, information search, and organizational ambidexterity," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2200-2233, December.
    10. Erwin Danneels & Rajesh Sethi, 2011. "New Product Exploration Under Environmental Turbulence," Organization Science, INFORMS, vol. 22(4), pages 1026-1039, August.
    11. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    12. Marina Estrada-Cruz & Noelia Rodriguez-Hernández & Antonio J. Verdú-Jover & Jose Maria Gómez-Gras, 2022. "The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 1-24, March.
    13. François Constant & Richard Calvi & Thomas Johnsen, 2020. "Managing tensions between exploitative and exploratory innovation through purchasing function ambidexterity Managing tensions between exploitative and exploratory innovation through purchasing functio," Post-Print hal-02891790, HAL.
    14. Justin J. P. Jansen & Michiel P. Tempelaar & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Structural Differentiation and Ambidexterity: The Mediating Role of Integration Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 797-811, August.
    15. Yuan, Chun & Xue, Doudou & He, Xin, 2021. "A balancing strategy for ambidextrous learning, dynamic capabilities, and business model design, the opposite moderating effects of environmental dynamism," Technovation, Elsevier, vol. 103(C).
    16. Lampert, Curba Morris & Kim, Minyoung, 2019. "Going far to go further: Offshoring, exploration, and R&D performance," Journal of Business Research, Elsevier, vol. 103(C), pages 376-386.
    17. Marina Estrada-Cruz & Noelia Rodriguez-Hernández & Antonio J. Verdú-Jover & Jose Maria Gómez-Gras, 0. "The effect of competitive intensity on the relationship between strategic entrepreneurship and organizational results," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-24.
    18. Galina Shirokova & Liudmila Ivvonen & Elena Gafforova, 2019. "Strategic Entrepreneurship in Russia during Economic Crisis," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(3), pages 62-76.
    19. Ferreira, Jorge & Coelho, Arnaldo & Moutinho, Luiz, 2020. "Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance: The moderating role of entrepreneurial orientation," Technovation, Elsevier, vol. 92.
    20. Lin, H.E., 2010. "Effects of strategy, context and antecedents and capabilities on the outcomes of ambidexterity : A multiple country case study of the US, China and Taiwan," Other publications TiSEM c0eab7d6-d6c7-4b55-9822-1, Tilburg University, School of Economics and Management.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:156:y:2023:i:c:s0148296322009444. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.