Evaluating the moderated-mediation effects of switching costs in the link between social capital and NPD performance

Abstract

In this study, we explore the causes and performance outcomes of switching costs in the context of new product development (NPD) from both the supplier and customer perspectives, and discuss the role that switching costs play as moderators and mediators in the relationship between social capital and NPD performance. Based on data from 214 Chinese manufacturers, we employ the structural equation model to test our conceptual model and hypotheses. The results indicate that relationship quality and customer involvement positively and negatively affect switching costs, respectively, and that switching costs negatively affect NPD performance. Switching costs mediate and moderate the relationship between social capital and NPD performance. Furthermore, switching costs significantly and positively moderate the relationship between relationship quality and NPD performance. On the other hand, switching costs insignificantly and negatively moderate the relationship between customer involvement and NPD performance. The theoretical and managerial implications of the findings are discussed.