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Customer co-creation in B2C e-commerce: does it lead to better new products?

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  • L. G. Pee

    (Nanyang Technological University)

Abstract

The business-to-consumer e-commerce platform facilitates direct reach to customers and is especially conducive to large-scale customer co-creation. Many major e-commerce businesses have begun to leverage the platform to co-create with customers in new product development (NPD), in anticipation of new products that are more innovative and sell better. Yet, empirical evidence for the impact of customer co-creation is still scarce. This study investigates the impact by distinguishing among different co-creation tasks (idea co-creation and decision co-creation) and NPD stages (product design and commercialization). Based on the co-creation and innovation literature, it is hypothesized that idea co-creation has a stronger impact when there is also decision co-creation. Further, co-creation in the product design stage is expected to have a stronger effect on product innovativeness, while co-creation in the commercialization stage has a stronger effect on product sales. The hypotheses were tested with data on 107 actual products. Looking beyond a homogenous conceptualization of co-creation enhances our understanding of how it influences different aspects of new product success. This is also one of the earliest studies to report empirical evidence for the impact of customer co-creation in e-commerce. The findings offer specific insights into the co-creation tasks and NPD stages to open for customer co-creation in practice.

Suggested Citation

  • L. G. Pee, 2016. "Customer co-creation in B2C e-commerce: does it lead to better new products?," Electronic Commerce Research, Springer, vol. 16(2), pages 217-243, June.
    • Handle: RePEc:spr:elcore:v:16:y:2016:i:2:d:10.1007_s10660-016-9221-z
    DOI: 10.1007/s10660-016-9221-z
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    Cited by:

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    2. Monika C. Schuhmacher & Sabine Kuester & Anna-Lena Hanker, 2018. "Investigating Antecedents And Stage-Specific Effects Of Customer Integration Intensity On New Product Success," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(04), pages 1-36, May.
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    4. Susan (Sixue) Jia & Fei Li, 2018. "Customer value co-creation in KIBS firms’ new service development: Patterns and antecedents," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 8(1), pages 19-28, January.
    5. Sanjit K. Roy & Gaganpreet Singh & Corey Hatton & Bidit Dey & Nisreen Ameen & Satish Kumar, 2023. "Customers’ motives to co-create in smart services interactions," Electronic Commerce Research, Springer, vol. 23(3), pages 1367-1400, September.
    6. Susan (Sixue) Jia & Fei Li, 2018. "Customer value co-creation in KIBS firms’ new service development: Patterns and antecedents," International Journal of Business and Social Research, LAR Center Press, vol. 8(1), pages 19-28, January.
    7. Liu, Yun & Onggo, Bhakti Stephan & Busby, Jerry, 2024. "Agent-based modelling of user engagement in new product development," Technovation, Elsevier, vol. 135(C).
    8. Lyu, Yanwei & Xiao, Xuan & Zhang, Jinning, 2024. "Does the digital economy enhance green total factor productivity in China? The evidence from a national big data comprehensive pilot zone," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 183-196.
    9. Syed Tariq Anwar, 2017. "Alibaba: Entrepreneurial growth and global expansion in B2B/B2C markets," Journal of International Entrepreneurship, Springer, vol. 15(4), pages 366-389, December.
    10. Xinghua Fang & Jian Zhou & Hongya Zhao & Yizeng Chen, 2022. "A biclustering-based heterogeneous customer requirement determination method from customer participation in product development," Annals of Operations Research, Springer, vol. 309(2), pages 817-835, February.
    11. Stojčić, Nebojša & Dabić, Marina & Kraus, Sascha, 2024. "Customisation and co-creation revisited: Do user types and engagement strategies matter for product innovation success?," Technovation, Elsevier, vol. 134(C).
    12. Huiquan Li & Qingning Lin & Yan Wang & Shiping Mao, 2023. "Can Digital Finance Improve China’s Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 13(7), pages 1-19, July.
    13. Sainan Cheng & Guohua Qu, 2023. "Research on the Effect of Digital Economy on Carbon Emissions under the Background of “Double Carbon”," IJERPH, MDPI, vol. 20(6), pages 1-27, March.
    14. Kim, Dong W. & Trimi, Silvana & Hong, Soon G. & Lim, Seongbae, 2020. "Effects of co-creation on organizational performance of small and medium manufacturers," Journal of Business Research, Elsevier, vol. 109(C), pages 574-584.
    15. Jilong Zhang & Jin Zhang & Kanliang Wang & Wei Yan, 2023. "Should doctors use or avoid medical terms? The influence of medical terms on service quality of E-health," Electronic Commerce Research, Springer, vol. 23(3), pages 1775-1805, September.
    16. Zaborek, Piotr & Mazur, Jolanta, 2019. "Enabling value co-creation with consumers as a driver of business performance: A dual perspective of Polish manufacturing and service SMEs," Journal of Business Research, Elsevier, vol. 104(C), pages 541-551.
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