Customer involvement and NPD cost performance: the moderating role of product innovation novelty
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 11 March 2019
Issue publication date: 14 June 2019
Abstract
Purpose
The purpose of this study is to examine the influence of product innovation novelty on the relationship between customer involvement and new product development (NPD) cost performance.
Design/methodology/approach
The authors use organizational information processing theory and adopt hierarchical regression and slope difference test to assess the relationships between constructs and test the hypotheses.
Findings
The authors evaluate the concept of product innovation novelty from the perspectives of suppliers and customers and infer that these two types of product innovation novelty exert a moderate effect on the relationship between customer involvement and NPD cost performance. First, product innovation novelty for customers strengthens the positive effects of customer involvement on the NPD cost performance. Second, product innovation novelty for suppliers weakens the positive impact of customer involvement on the NPD cost performance. The authors also find that the interaction between product innovation novelty for suppliers and product innovation novelty for customers weakens the positive impact of customer involvement on NPD cost performance.
Originality/value
The findings of this study explain the reasons for the controversies surrounding the impact of customer involvement on cost performance and discuss the role of product innovation novelty in customer involvement in NPD process. The results of this study can be used to establish whether customer involvement improves or weakens NPD cost performance and identify the role of product innovation novelty in NPD. The conclusions derived from this study can provide theoretical knowledge and managerial insights for both academicians and corporate professionals.
Keywords
Acknowledgements
The authors truly thank the Editor and the three anonymous referees, and greatly appreciate their help and suggestions. This work was supported by the Nature Science foundation of China (No. 71571140, No. 71602153 and No. 71832011), the Humanity and Social Science Youth foundation of Ministry of Education of China (No. 18YJC630079), and the Fundamental Research Funds for the Central Universities.
Citation
Li, Y., Li, G., Feng, T. and Xu, J. (2019), "Customer involvement and NPD cost performance: the moderating role of product innovation novelty", Journal of Business & Industrial Marketing, Vol. 34 No. 4, pp. 711-722. https://doi.org/10.1108/JBIM-05-2018-0153
Publisher
:Emerald Publishing Limited
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