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

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.

Citation

Rautela, S., Sharma, S. and Virani, S. (2021), "Influence of customer participation in new product development: the moderating role of social media", International Journal of Productivity and Performance Management, Vol. 70 No. 8, pp. 2092-2112. https://doi.org/10.1108/IJPPM-05-2020-0241