Enhancing new service development effectiveness: the role of customer participation and the moderating effects of empowerment and satisfaction

Abstract

PurposeThe purpose of this paper is to investigate the role of Customer Participation (CP) in the effectiveness of New Service Development (NSD) by examining the moderating roles of Customer Empowerment (CE) and Customer Satisfaction (CS). The research reduces the risk of failure of the NSD process and/or improves the NSD processes used by companies through the consideration of the results in the practical dimension.Design/methodology/approachThis study investigates the effects of CP at different stages of NSD using a quantitative approach. Data were collected through an online survey questionnaire. Smart PLS was used to analyse the data collected from 509 newsreaders and users of the news agency’s application.FindingsThe model confirmed that CE has an impact on the effectiveness of NSD in the idea generation and commercialization stages, but not in the development stage. Empowerment and customer satisfaction did not influence the three stages of NSD indirectly but directly. The results show that CP, CS and CE do not always have a direct or indirect effect on the development of new services. Therefore, in order to design new service development projects, media news companies need to determine the level of user cooperation.Research limitations/implicationsThe lack of objective data, especially on company performance, forces researchers to use questionnaires to analyse NSD effectiveness. Another limitation is that newspaper users answered the questionnaires, which creates “common method variance.”Practical implicationsResearchers on NSD effectiveness must use questionnaires due to a lack of objective data, especially on company performance. Another limitation is “common method variance” from newspaper users answering questionnaires.Originality/valueThis paper is a response to a perceived need for an examination of how new service development can be successful and effective.