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The purpose of this research is to review empirical research on customer involvement in innovation and identify future research directions that can better connect this research with marketing strategy literatures and offer opportunities for further theoretical development.

We conduct a review of empirical articles published in eight leading marketing and innovation journals between 2001 and 2017.

The review shows that the literature on customer involvement in innovation is highly diverse and fragmented, lacking a common understanding of what constitutes customer involvement in innovation and its theoretical underpinnings. There exists a multitude of conceptualizations of customer involvement in innovation, which limits effective accumulation of domain knowledge. A large number of studies have taken the customer’s perspective to examine their motivation to participate and ability to contribute, whereas less research has been done from the firm’s perspective to understand how firms may effectively manage the well-recognized challenges of customer involvement as well as the implications of customer involvement for long-term innovation strategy and overall performance. Based on the review, we offer recommendations for future research.

We identify important questions for future research that are highly relevant for the practice of customer involvement in innovation.

We provide a systematic review of the rapidly growing empirical research on customer involvement in innovation. We evaluate key points of differences in the literature and offer a synthesis that helps identify opportunities for future research.

The study investigates different roles (antecedent, mediator and moderator roles) of customer involvement in rapport and satisfaction. It is also designed to reveal the comparative impact of three types of relational benefits (confidential, social and special treatment benefits) on customer involvement.

Structural equation modeling (using Amos) is used for analyzing the data, collected from a survey of 212 sample respondents of the private commercial banking sector.

Results suggest that customer involvement does have antecedent and mediated influence on rapport-satisfaction link while the moderation impact of customer involvement is not supported. In contrast, social treatment benefit is found as the most important relational benefit for developing customer involvement in Bangladesh followed by confidence and special treatment benefit.

Findings will assist bank management to set effective future strategies and to manage successful relationships with customers in order to motivate customer satisfaction with the bank. But the study may suffer from lack of generalization and poor sample representation as it focuses on a single country (Bangladesh) and a single industry (banking sector).

The paper for the first time attempts to reveal antecedent, mediator and moderator role of customer involvement in rapport and satisfaction. It also identifies the level of importance among three relational benefits for Bangladeshi bank customers.

This paper aims to investigate the process of innovation in firms founded by user-entrepreneurs. It also empirically investigates the role of customer involvement and user-entrepreneurs’ learning goal orientation in the innovation process.

A survey design is used to collect data from entrepreneurs managing small businesses. A total of 255 entrepreneurs responded to the survey questionnaire. The partial least square structural equation model was used to test the measurement and structural model.

Results suggest a positive association of user-entrepreneurship with innovation and customer involvement. Results also confirmed that customer involvement mediates the relationship between user-entrepreneurship and innovation. In addition, results suggest that the higher learning orientation (LO) of user-entrepreneurs plays a vital role in innovation by strengthening the relationship between user-entrepreneurship and customer involvement.

The study focuses on small entrepreneurial firms with less than equal to or less than 250 employees. The results may not be generalizable to larger user-entrepreneurial firms. Also, this study is based on American entrepreneurs. Therefore, the results may not be generalizable to other countries.

Evidence for the role of customer involvement and LO in the innovation process can be used by entrepreneurs and small business owners in hiring and training decisions. Also, the findings suggest the important role played by customers in the innovation process. Firms can use this insight to involve their customers in the product development process to secure better innovation outcomes.

This study contributes to the innovation and entrepreneurship literature by emphasizing the critical role of customer networks in user-entrepreneurs’ innovation performance. It offers a process model that offers empirical evidence supporting the positive role of customer involvement in new ventures. It highlights the role of the LO of user-entrepreneurs in the customer engagement process.

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.

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.

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.

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.

The purpose of this paper is to investigate the relationships among suppliers’ trust and commitment, transaction-specific investment, switching cost, and customer involvement within the context of relational governance mechanism and the social exchange theory.

The authors use survey data from 214 Chinese manufacturing firms and employ the structural equation model to verify the conceptual model.

Relational governance benefits customer involvement. Transaction-specific investment mediates the relationship between trust and commitment of suppliers. Switching costs negatively moderate the relationship between suppliers’ trust and customer involvement, but positively moderate the relationship between suppliers’ commitment and customer involvement.

The authors focus on two key elements of relationship, namely, trust and commitment of suppliers, but neglect other relational factors, such as relational norms and interdependence.

These findings broaden the understanding and present new directions for the implementation of customer involvement from the perspective of relational governance and social exchange theory.

This study aims to use the framework of customer dominant logic to explore the mediating role of service co-creation on the relationships between customer involvement and perceived service performance and between customer involvement and word-of-mouth (WOM). It also investigates the moderating role of customer relational-motivational orientation on the relationship between customer involvement and service co-creation.

A questionnaire survey was conducted to collect responses from 289 Hong Kong's customers in different service settings. Structural equation modeling was used to test the proposed research model.

The results of structural equation modeling showed that the freedom of co-creation and the degree of collaboration fully mediated the effect of customer involvement on perceived service performance and WOM. Additionally, relational-motivational orientation moderated the relationships between customer involvement and the freedom of co-creation and between customer involvement and the degree of collaboration.

This research provides implications to managers on how to facilitate an environment that stimulates customer co-creation. Customer-contact employees must be trained with the necessary interpersonal skills to serve customers with different levels of relational-motivational orientation.

The study is one of the first to identify customer involvement as a key antecedent of service co-creation attributes and the moderating role of relational-motivational orientation on the relationships between customer involvement and service co-creation attributes.

The purpose of this paper is to incorporate social exchange theory to elaborate on the antecedents that underlie consumers’ trust of innovative financial product providers. In particular, this study investigates the mediating role of positive moods in stimulating customer trust.

The research model was tested using data collected from 440 elite customers from top-ten financial holding companies in Taiwan. Structure equation modeling was employed to verify and validate the research model.

The findings suggest that initial trust and customer involvement significantly and positively impact customer moods. In addition, customer initial trust, involvement, and positive moods significantly influence customers’ trusting belief of service providers.

This study focussed on the financial services industry only. While this industry represents an ideal new product development context, future research is needed to test the theory in different industries.

The research findings advance the understanding of how to successfully build customer trust for innovative products.

Current research unfolds the impact of customer involvement on trust development and supplements existing trust study findings by examining the mediating effect of positive mood on trust development through quantitative research. The research findings increase the understanding of how customers develop trust with service provider.

Rapid prototyping can potentially accelerate the entire process of new product development (NPD), enabling a high level of customer involvement and hence new product success (NPS). This study aims to examine the relationship between prototyping and NPS, and the moderating effect of customer involvement, as well as the influence of speed of information dissemination on customer involvement.

Data were collected using the survey method through structured questionnaires. The key participants were management and team leaders from technology-based companies.

The results indicate that prototyping positively correlates with NPS, particularly when customer involvement is high. The speed of information dissemination, both from customers and on competitive products, has a positive impact on customer involvement.

The study was limited by the undefined development stage of the prototype when offered for customer feedback. Future studies could focus on how customer involvement at each stage of prototype development affects NPS through a moderating effect.

The study confirms that investing in prototyping equipment for NPD increases the probability of NPS. Information capturing customers’ views and on competitive products in the market should be shared among the NPD teams. This could encourage better sharing of opinions and perceptions with customers about whether new products meet their wishes and expectations.

This study demonstrates that customer involvement moderates the relationship between prototyping and NPS. The degree of customer involvement depended on the speed of response of the customers themselves and on how well competitive product information was disseminated within the NPD team.

The purpose of this paper is to identify the double-edged sword of customer involvement (perceived relationship quality and coordination cost) in new service development in the hotel industry, and to explore when customers should be involved from the service provider’s view.

A total of 252 valid questionnaires were collected from hotel managers, and ordinary least squares regression analysis was conducted to test the hypotheses.

Results not only show that customer involvement causes higher coordination cost but also show no direct positive effect on perceived relationship quality. Furthermore, this study finds that service climate reduces the negative effect of customer involvement and enhances its positive effect. By contrast, customer complexity intensifies the negative effect of customer involvement.

This study empirically examines the double-edged sword of customer involvement and tests the boundary conditions associated with hotel back and front office factors (service climate versus customer complexity).

Although scholars highlighted the need to close the interactive marketing gap and enhanced understanding of willingness to pay more in settings where customer participation in the service delivery process is paramount, research addressing this issue is scare. This study investigates the effect of perceived employee commitment to service delivery and customer involvement on customer value and willingness to pay more. The study also examines the extent to which customer value mediates the effect of employee commitment and customer involvement on willingness to pay more for banking services.

The analysis was based on a sample of 211 Nigerian bank customers procured through a mall-intercept survey technique. The partial least squares structural equation modelling procedure and the Preacher–Hayes Bootstrapping technique aided hypotheses testing.

This study demonstrates that elements of employee commitment to service delivery and customer involvement have significant positive effect on the components of customer value. It also shows that customer value components have significant effect on customers' willingness to pay more. Additionally, the study shows that components of customer value mediate the effect of employee commitment to service delivery and customer involvement on willingness to pay more.

The study contributes to closing gaps in interactive marketing literature by uncovering how willingness to pay more for services is influenced by customer perceptions of employee commitment (affective and calculative) service delivery, customer involvement and customer value (hedonic and utilitarian).

It is important for managers to put in place measures that will help them know the kind of commitment cues their employees are emitting to customers as well as levels of customer involvement during service encounters.

This study breaks new ground in three unique ways. First, the study represents the first attempt to examine the combined effect of employee commitment to service delivery and customer involvement on consumer value perceptions. Second, the study also demonstrates that hedonic value has a more pronounced effect on willingness to pay more for banking services than utilitarian value. Finally, the study shows the extent to which customer value (hedonic vs utilitarian) mediates the effect of employee commitment to service delivery and customer involvement on willingness to pay more.