Hostname: page-component-78c5997874-xbtfd Total loading time: 0 Render date: 2024-11-10T09:36:47.417Z Has data issue: false hasContentIssue false
  • English
  • Français

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

Published online by Cambridge University Press:  18 December 2013

Ming-Ji James Lin ,
Yu-Cheng Tu ,
Der-Chao Chen  and
Chin-Hua Huang
Ming-Ji James Lin
Affiliation:
Department of Business Administration, National Central University, Taiwan
Yu-Cheng Tu*
Affiliation:
Department of Marketing and Logistics Management, Chaoyang University of Technology, Taiwan
Der-Chao Chen
Affiliation:
Department of Business Administration, National Central University, Taiwan
Chin-Hua Huang*
Affiliation:
Department of Cultural and Creative Industries, HungKuang University, Taiwan
*
Corresponding author: E-mail: cyuttyc@gmail.com; chhuang0528@gmail.com
Corresponding author: E-mail: cyuttyc@gmail.com; chhuang0528@gmail.com
Get access Rights & Permissions [Opens in a new window]

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.

Keywords

customer participationproduct innovativenessdevelopment speeddevelopment costproduct quality
Type
Research Article
Information
Journal of Management & Organization , Volume 19 , Issue 3 , May 2013 , pp. 314 - 337
Copyright
Copyright © Cambridge University Press and Australian and New Zealand Academy of Management 2013 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Adams, M. E., Day, G. S., Dougherty, D. (1998). Enhancing new product development performance: An organizational learning perspective. Journal of Product Innovation Management, 15(5), 403–422.CrossRefGoogle Scholar
Ahire, S. L., Dreyfus, P. (2000). The impact of design management and process management on quality: An empirical investigation. Journal of Operations Management, 18(5), 549–575.Google Scholar
Aiken, L. S., West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park, CA: Sage.Google Scholar
Ali, A. (2000). The impact of innovativeness and development time on new product performance for small firms. Marketing Letters, 11(2), 151–163.CrossRefGoogle Scholar
Ancona, D., Caldwell, D. (1992). Demography and design: Predictors of new product team performance. Organization Science, 3(3), 321–341.CrossRefGoogle Scholar
Anderson, J. C., Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.Google Scholar
Anderson, J., Narus, J. (1990). A model of distributor firm and manufacturer firm working partnerships. Journal of Marketing, 54(1), 42–58.Google Scholar
Armstrong, J. S., Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research, 14(3), 396–402.Google Scholar
Atuahene-Gima, K. (1996). Market orientation and innovation. Journal of Business Research, 35(2), 93–103.Google Scholar
Bagozzi, R. P., Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–94.Google Scholar
Baumgartner, H., Homburg, C. (1996). Applications of structural equation modeling in marketing and consumer research: A review. International Journal of Research in Marketing, 13(2), 139–161.CrossRefGoogle Scholar
Belderbos, R., Carree, M., Lokshin, B. (2004). Co-operative R&D and firm performance. Research Policy, 33(10), 1477–1492.Google Scholar
Bojica, A. M., Fuentes, M. D. M., Gómez-Gras, J. M. (2011). Radical and incremental entrepreneurial orientation: The effect of knowledge acquisition. Journal of Management and Organization, 17(3), 326–343.Google Scholar
Bonner, J. M. (2010). Customer interactivity and new product performance: Moderating effects of product newness and product embeddedness. Industrial Marketing Management, 39(3), 485–492.Google Scholar
Carbonell, P., Rodriguez, A. I. (2006). The impact of market characteristics and innovation speed on perceptions of positional advantage and new product performance. International Journal of Research in Marketing, 23(1), 1–12.CrossRefGoogle Scholar
Carbonell, P., Rodriguez-Escudero, A. I., Pujari, D. (2009). Customer involvement in new service development: An examination of antecedents and outcomes. Journal of Product Innovation Management, 26(5), 536–550.Google Scholar
Carmona-Lavado, A., Cuevas-Rodríguez, G., Cabello-Medina, C. (2010). Social and organizational capital: Building the context for innovation. Industrial Marketing Management, 39(4), 681–690.Google Scholar
Cavusgil, S. T., Calantone, R. J., Zhao, Y. (2003). Tacit knowledge transfer and firm innovation capability. Journal of Business & Industrial Marketing, 18(1), 6–21.Google Scholar
Chang, D. R., Cho, H. (2008). Organizational memory influences new product success. Journal of Business Research, 61(1), 13–23.Google Scholar
Chen, J., Reilly, R., Lynn, G. (2005). The impacts of speed-to-market on new product success: The moderating effects of uncertainty. IEEE Transactions on Engineering Management, 52(2), 199–211.Google Scholar
Dahlsten, F. (2004). Hollywood wives revisited: A study of customer involvement in the XC90 project at Volvo cars. European Journal of Innovation Management, 7(2), 141–149.Google Scholar
Fang, E. (2008). Customer participation and the trade-off between new product innovativeness and speed to market. Journal of Marketing, 72(4), 90–104.Google Scholar
Fang, E., Palmatier, R. W., Evans, K. R. (2008). Influence of customer participation on creating and sharing of new product value. Journal of the Academy of Marketing Science, 36(3), 322–336.Google Scholar
Flynn, B. B., Schroeder, R. G., Flynn, E. J. (1999). World class manufacturing: An investigation of Hayes and Wheelwright's foundation. Journal of Operations Management, 17(3), 249–269.Google Scholar
Fornell, C., Larcker, D. F. (1981). Evaluating structural equation models with unobservables and measurement error. Journal of Marketing Research, 18(1), 39–50.Google Scholar
Ganesan, S., Malter, A. J., Rindfleisch, A. (2005). Does distance still matter? Geographic proximity and new product development. Journal of Marketing, 69(4), 44–60.Google Scholar
Gantumur, T., Stephan, A. (2011). Mergers & acquisitions and innovation performance in the telecommunications equipment industry. Industrial and Corporate Change, 21(2), 277–314.Google Scholar
García, N., Sanzo, M. J., Trespalacios, J. A. (2008). New product internal performance and market performance: Evidence from Spanish firms regarding the role of trust, interfunctional integration, and innovation type. Technovation, 28(11), 713–725.Google Scholar
Gerwin, D. (2004). Coordinating new product development in strategic alliances. Academy of Management Review, 29(2), 241–257.CrossRefGoogle Scholar
Gopalakrishnan, S., Bierly, P. (2001). Analyzing innovation adoption using a knowledge-based approach. Journal of Engineering and Technology Management, 18(2), 107–130.Google Scholar
Grant, R. (1996). Toward a knowledge based theory of the firm. Strategic Management Journal, 17, 109–122.CrossRefGoogle Scholar
Griffin, A. (1997). The effect of project and process characteristics on product development cycle time. Journal of Marketing Research, 34(1), 24–35.Google Scholar
Griffin, A. (2002). Product development cycle time for business-to-business products. Industrial Marketing Management, 31(4), 291–304.Google Scholar
Gupta, A. K., Wilemon, D. L. (1990). Accelerating the development of technology-based new products. California Management Review, 32(2), 24–44.Google Scholar
Hair, J. F. Jr., Anderson, R. E., Tatham, R. L., Black, W. C. (1998). Multivariate data analysis (5th ed.). Englewood Cliffs, NJ: Prentice-Hall.Google Scholar
Härtel, C. E. J., Pearman, G. (2010). Understanding and responding to the climate change issue: Towards a whole-of-science research agenda. Journal of Management and Organization, 16(1), 16–47.Google Scholar
Hartwell, J. K., Roth, G. (2010). Doing more with less at Ariens: A leadership and transformation case study. Journal of Management and Organization, 7(2), 89–109.Google Scholar
Héliot, Y. F., Riley, M. (2010). A study of indicators of willingness in the knowledge transfer process. Journal of Management and Organization, 16(3), 399–410.CrossRefGoogle Scholar
Hu, L., Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structural equation analysis: Conventional criteria versus new alternatives. Structural Modeling, 6(1), 1–55.Google Scholar
Jacobides, M. G., Augier, M., Knudsen, T. (2006). Benefiting from innovation: Value creation, value appropriation, and the role of industry architectures. Research Policy, 35(8), 1200–1221.Google Scholar
Jayaram, J., Narasimhan, R. (2007). The influence of new product development competitive capabilities on project performance. IEEE Transactions on Engineering Management, 54(2), 241–256.Google Scholar
Kessler, E. H., Bierly, P. E. (2002). Is faster really better? An empirical test of the implications of innovation speed. IEEE Transactions on Engineering Management, 49(1), 2–12.Google Scholar
Kessler, E. H., Bierly, P. E., Gopalakrishnan, S. (2000). Internal vs. external learning in new product development: Effects on speed, costs and competitive advantage. R&D Management, 30(3), 213–223.Google Scholar
Kessler, E. H., Chakrabarti, A. K. (1996). Innovation speed: A conceptual model of context, antecedents, and outcomes. Academy of Management Review, 21(4), 1143–1191.Google Scholar
Kessler, E. H., Chakrabarti, A. K. (1998). An empirical investigation into methods affecting the quality of new product innovations. International Journal of Quality Science, 3(4), 302–319.CrossRefGoogle Scholar
Knudsen, M. P. (2007). The relative importance of interfirm relationships and knowledge transfer for new product development success. Journal of Product Innovation Management, 24(2), 117–138.Google Scholar
Kogut, B., Zander, U. (1992). Knowledge of the firm, combinative capabilities, and the replication of technology. Organization Science, 3(3), 383–397.Google Scholar
Langerak, F., Hultink, E. J. (2008). The effect of new product development acceleration approaches on development speed: A case study. Journal of Engineering and Technology Management, 25(3), 157–167.Google Scholar
Langerak, F., Hultink, E. J., Griffin, A. (2008). Exploring mediating and moderating influences on the links among cycle time, proficiency in entry timing, and new product profitability. Journal of Product Innovation Management, 25(4), 370–385.Google Scholar
Lengnick-Hall, C. A. (1996). Customer contribution to quality: A different view of the customer-oriented firm. Academy of Management Review, 21(3), 791–824.Google Scholar
Lettl, C. (2007). User involvement competence for radical innovation. Journal of Engineering and Technology Management, 24(1–2), 53–75.Google Scholar
Li, C. R., Lin, C. J., Chu, C. P. (2008). The nature of market orientation and the ambidexterity of innovations. Management Decision, 46(7), 1002–1026.Google Scholar
Loof, H., Heshmati, A. (2002). Knowledge capital and performance: A new firm level innovation study. International Journal of Production Economic, 76(1), 61–85.Google Scholar
Lynn, G. S., Skov, R. B., Abel, K. D. (1999). Practices that support team learning and their impact on speed to market and new product success. Journal of Product Innovation Management, 16(5), 439–454.CrossRefGoogle Scholar
McAdam, R., McClelland, J. (2002). Individual and team-based idea generation within innovation management: Organisational and research agendas. European Journal of Innovation Management, 5(2), 86–97.Google Scholar
Mishra, A. A., Shah, R. (2009). In union lies strength: Collaborative competence in new product development and its performance effects. Journal of Operations Management, 27(4), 324–338.Google Scholar
Monjon, S., Waelbroeck, P. (2003). Assessing spillovers from universities to firms: Evidence from French firm-level data. International Journal of Industrial Organization, 21(9), 1255–1270.Google Scholar
Montoya-Weiss, M., Massey, A., Song, M. (2001). Getting it together: Temporal coordination and conflict management in global virtual teams. Academy of Management Journal, 44(6), 1251–1262.Google Scholar
Nakata, C., Zhu, Z., Izberk-Bilgin, E. (2011). Integrating marketing and information services functions: A complementarity and competence perspective. Journal of the Academy of Marketing Science, 39(5), 700–716.Google Scholar
Nambisan, S. (2002). Designing virtual customer environments for new product development: Towards a theory. Academy of Management Review, 27(3), 392–413.Google Scholar
Narver, J. C., Slater, S. F., MacLachlan, D. L. (2004). Responsive and proactive market orientation and new product success. Journal of Product Innovation Management, 21(5), 334–347.Google Scholar
Newey, L., Verreynne, M. L. (2011). Multilevel absorptive capacity and interorganizational new product development: A process study. Journal of Management and Organization, 17(1), 39–55.Google Scholar
Olson, E. M., Walker, O. C. Jr., Ruekert, R. W. (1995). Organizing for effective new product development: The moderating role of product innovativeness. Journal of Marketing, 59(1), 48–62.Google Scholar
Pelham, A., Wilson, D. (1995). A longitudinal study of the impact of market structure, firm structure, strategy and market orientation culture on dimensions of small firm performance. Journal of the Academy of Marketing Science, 24(1), 27–43.Google Scholar
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.Google Scholar
Polanyi, M. (1966). The tacit dimension. London: Routledge & Kegan Paul.Google Scholar
Rijsdijk, S. A., van den Ende, J. (2011). Control combinations in new product development projects. The Journal of Product Innovation Management, 28(6), 868–880.Google Scholar
Roxenhall, T., Ghauri, P. (2004). Use of the written contract in long-lasting business relationships. Industrial Marketing Management, 33(3), 261–268.Google Scholar
Salter, A., Gann, D. (2003). Sources of ideas for innovation on engineering design. Research Policy, 32(8), 1309–1324.CrossRefGoogle Scholar
Sheremata, W. A. (2000). Centrifugal and centripetal forces in radical new product development under time pressure. Academy of Management Review, 25(2), 389–408.Google Scholar
Sioukas, A. V. (1995). User involvement for effective customization: An empirical study on voice networks. IEEE Transactions on Engineering Management, 42(1), 39–49.Google Scholar
Suseno, Y., Ratten, V. (2007). A theoretical framework of alliance performance: The role of trust, social capital and knowledge development. Journal of Management and Organization, 13(1), 4–23.Google Scholar
Tsai, K. H. (2009). Collaborative networks and product innovation performance: Toward a contingency perspective. Research Policy, 38(5), 765–778.Google Scholar
Tushman, M. L., Anderson, P. (1986). Technological discontinuities and organizational environments. Administrative Science Quarterly, 31(3), 439–465.Google Scholar
Vandenbosch, M., Clift, T. (2002). Dramatically reducing cycle times through flash development. Long Range Planning, 35(6), 567–589.Google Scholar
von der Heidt, T., Scott, S. (2011). More similar than different: A study of cooperative product innovation with multiple external stakeholders. Journal of Management and Organization, 17(1), 95–112.Google Scholar
von Hippel, E. (1988). The sources of innovation. New York, NY: Oxford University Press.Google Scholar
Von Hippel, E. (1998). Economics of product development by users: The impact of ‘sticky’ local information. Management Science, 44(5), 629–644.Google Scholar
Watkins, K., Ellinger, A., Valentine, T. (1999). Understanding support for innovation in a large-scale change effort. Human Resource Development Quarterly, 10(1), 63–77.Google Scholar
Wiesner, R., McDonald, J., Heather, C. B. (2007). Australian small and medium sized enterprises: A study of high performance management practices. Journal of Management and Organization, 13(3), 1–29.Google Scholar
Wu, L. Y. (2010). Applicability of the resource-based and dynamic-capabilities view under environmental volatility. Journal of Business Research, 63(1), 27–31.Google Scholar
Xueming, L., Bhattacharya, C. B. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70(4), 1–18.Google Scholar
Zander, U., Kogut, B. (1995). Knowledge and the speed of transfer and imitation of organizational capabilities: An empirical test. Organization Science, 6(1), 76–92.CrossRefGoogle Scholar