TY - JOUR AB - Purpose– Customer involvement has been recognized as a key factor for successful service development. One important aspect affecting the outcome of new service development (NSD) projects in whose development customers are involved is the choice of the appropriate participating customer. This study aims to examine the effect of two customer characteristics (relational closeness and lead‐userness) on four indicators of new service performance.Design/methodology/approach– The paper uses data from 102 NSD projects. Covariance‐based path analysis is used to test the model.Findings– The results reveal that involving close customers in the NSD process has a positive direct effect on service advantage and speed to market and a positive indirect effect on market performance. The involvement of lead users, on the other hand, has a positive effect on service newness and service advantage, and a negative effect on market performance.Research limitations/implications– The focus on Spanish companies puts constraints on the generalizability of the results to other national contexts. Future research should replicate this study in different countries. Also, future research could explore more deeply the performance impact of close customers and lead users by collecting data on the roles that customers can play in NSD.Practical implications– The findings from this study suggest that firms need to make conscious choices about the types of customers to involve in service innovation as different types of customers affect new service performance differently.Originality/value– This study makes an original contribution by investigating the effect of customer's relational closeness and customer's lead userness on four indicators of NSD performance. VL - 26 IS - 7 SN - 0887-6045 DO - 10.1108/08876041211266440 UR - https://doi.org/10.1108/08876041211266440 AU - Carbonell Pilar AU - Rodriguez‐Escudero Ana I. AU - Pujari Devashish PY - 2012 Y1 - 2012/01/01 TI - Performance effects of involving lead users and close customers in new service development T2 - Journal of Services Marketing PB - Emerald Group Publishing Limited SP - 497 EP - 509 Y2 - 2024/05/12 ER -