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The Effectiveness of Customer Participation in New Product Development: A Meta-Analysis
Although the returns of customer participation on new product development (NPD) performance can vary substantially, the current literature lacks a systematic conceptual and empirical integration showing when customer participation is valuable in enhancing NPD performance. Building on knowledge management theory, the authors present a conceptual framework that synthesizes a variety of contingency factors. A meta-analysis empirically examines the moderating effects of contextual factors between customer participation and NPD performance. The analysis reveals that involving customers in the ideation and launch stages of NPD improves new product financial performance directly as well as indirectly through acceleration of time to market, whereas customer participation in the development phase slows down time to market, deteriorating new product financial performance. Furthermore, the benefits of customer participation on NPD performance are greater in technologically turbulent NPD projects, in emerging countries, in low-tech industries, for business customers, and for small firms. The authors discuss several theoretical and managerial implications about when to engage customers in the innovation process.
Journal Article
Leveraging constraints for innovation : new product development essentials from the PDMA
\"Sales- In a single comprehensive volume, covers the full spectrum of constraint-related strategies and techniques in a coherent, integrated fashion - Provides a set of frameworks, techniques, and tools that can be immediately implemented - Offers how-to knowledge on specific tools and methods as applied to innovating products and services when facing constraints as well as the development of new business models - Integrates problem- and solution-based knowledge to enable companies to develop sustainable growth strategies by leveraging constraints and restrictions toward innovation strategies, processes and offerings Product development professionals including engineers, project managers and business managers in a broad range of industries from heavy manufacturing to the service sector. Plus members of the PDMA and those training for the PDMA Professional Certification Examination using the body of knowledge\"-- Provided by publisher.
Book
Design Crowdsourcing: The Impact on New Product Performance of Sourcing Design Solutions from the \Crowd\
The authors examine an increasingly popular open innovation practice, \"design crowdsourcing,\" wherein firms seek external inputs in the form of functional design solutions for new product development from the \"crowd.\" They investigate conditions under which managers crowdsource design and determine whether such decisions subsequently boost product sales. The empirical analysis is guided by qualitative insights gathered from executive interviews. The authors use a novel data set from a pioneering crowdsourcing firm and find that three concept design characteristics—perceived usability, reliability, and technical complexity—are associated with the decision to crowdsource design. They use an instrumental variable method accounting for the endogenous nature of crowdsourcing decisions to understand when such a decision affects downstream sales. The authors find that design crowdsourcing is positively related to unit sales and that this effect is moderated by the idea quality of the initial product concept. Using a change-score analysis of consumer ratings, they find that design crowdsourcing enhances perceived reliability and usability. They discuss the strategic implications of involving the crowd, beyond ideation, in helping transform ideas into effective products.
Journal Article
The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity
Because no previous literature discusses the determinants of green product development performance, this study develops an original framework to fill the research gap. This study explores the influences of green dynamic capabilities and green transformational leadership on green product development performance and investigates the mediation role of green creativity. The results demonstrate that green dynamic capabilities and green transformational leadership positively influence green creativity and green product development performance. Besides, this study indicates that the positive relationships between green product development performance and their two antecedents—green dynamic capabilities and green transformational leadership—are partially mediated by green creativity. It means that green dynamic capabilities and green transformational leadership can not only directly affect green product development performance positively but also indirectly affect it positively via green creativity. Hence, companies have to increase their green dynamic capabilities, green transformational leadership, and green creativity to enhance their green product development performance.
Journal Article
Customer involvement in co-development: problem-solving and decision-making in new product development
Purpose
Customers can participate in new product development (NPD) in many ways. Drawing on the knowledge-based view (KBV) and innovation literature, this study aims to contrast two main product development activity types, i.e. problem-solving and decision-making. It proposes customers play distinct roles if they get involved in these activities, which influence NPD outcomes differently. It also explores customer need specificity as a boundary condition for the above-mentioned relationships.
Design/methodology/approach
The authors collected survey data from 308 managers in the innovation domain.
Findings
Customer involvement in problem-solving and decision-making distinctively influences new product innovativeness and development speed. Customer need specificity interacts with the two co-development types differently to impact these NPD outcomes further.
Research limitations/implications
This research extends the KBV and addresses the inconsistent findings in the literature regarding customer involvement as co-developers in innovation. It also provides novel insights into how knowledge characteristics like customer need specificity can direct co-developing activities to generate distinct NPD results.
Practical implications
This paper offers practical implications for firms on how to involve customers in developing innovative new products while managing development speed.
Originality/value
Prior research has yet to distinguish customer responsibilities related to co-development activities. This research fills this gap and offers novel insights that problem-solving and decision-making have opposite impacts on different NPD outcomes. This research demonstrates that finer knowledge about customer involvement responsibilities is needed for critical NPD outcomes.
Journal Article
How product complexity affects consumer adoption of new products: The role of feature heterogeneity and interrelatedness
Recent technological advancements allow companies to incorporate increasingly heterogeneous and interrelated features into their products, which heightens the products' complexity. In four experimental studies conducted with two product categories, this article reveals similarities and differences in terms of how the heterogeneity and interrelatedness of product features influence consumer attitudes (i.e., expected product usability and capability) and, in turn, purchase intentions. Moreover, it shows that both neglected dimensions of product complexity affect the corresponding influence of the number of product features but do so in considerably different ways. The findings suggest that companies can foster consumer adoption by deemphasizing a product's feature heterogeneity, thereby avoiding low expected product usability, and by emphasizing its feature interrelatedness, thereby promoting high expected product capability. This article provides insights into how companies can manage the complexity of products during both product design (i.e., before market launch) and product advertising and selling (i.e., after market launch).
Journal Article