Influence of customer participation in new product development: the moderating role of social media

Sonica Rautela, Sarika Sharma and Shreya Virani

International Journal of Productivity and Performance Management, 2020, vol. 70, issue 8, 2092-2112

Abstract: Purpose - The business environment is changing and so are the rules of doing business. Constant innovation is the key to win in this dynamic marketplace, so that the new ideas get converted into new marketable products quickly with the least possible mistake. One way to inculcate innovation is by the participation of customers in the new product development (NPD) process. Platforms like social media has provided an opportunity for firms to communicate, co-create and collaborate with customers. The present study aims to understand the customers' participation in three phases, namely idea generation, development and commercialization of the NPD process for its effectiveness. Design/methodology/approach - With the help of review of existing literature, a theoretical model is proposed. This model is then empirically evaluated with data of 213 respondents using structural equation modelling (SEM). The respondents are majorly young social media users in India. Findings - The results highlight that customer involvement is important in idea generation and commercialization phase of NPD process for its effectiveness. Also, the effectiveness of NPD process affects the financial performance of the firm. The use of social media is considered for its mediating role in NPD process effectiveness during the three phases. The results show that it has an effective role to play during the idea generation phase. Originality/value - Consumers’ perspective concerning usage of social media for their participation in NPD is an unexplored area in general and in the Indian context in particular. To fill this research gap the present study is carried out.

Keywords: New product development (NPD) process; Social media; Customer participation; Customer perspective; Structural equation modelling (SEM); Financial performance (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-05-2020-0241

DOI: 10.1108/IJPPM-05-2020-0241

Access Statistics for this article

International Journal of Productivity and Performance Management is currently edited by Dr Luisa Huatuco and Dr Nicky Shaw

More articles in International Journal of Productivity and Performance Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().