Linking CIO–CMO Communication and Product Innovation via Virtual Customer Environment Engagement: A Moderated Mediation Study

Abstract

AbstractIntuitively, we would expect that CIO–CMO communication plays a minimal role in product innovation performance, because product innovation is primarily driven by firms’ market orientation, knowledge of customer needs and cross‐functional integration among marketing, R&D and operations management. In a sharp contrast to this perspective, we propose that CIO–CMO communication increases product innovation performance through enhancing virtual customer environment (VCE) engagement. Such proposed effects are supported by two studies with different samples (i.e. MBA alumni in Study 1 and a representative sample in Study 2) and different performance measures (i.e. subjective ratings in Study 1 and objective sales data in Study 2). Furthermore, the effect of CIO–CMO communication on product innovation performance via VCE engagement is contingent upon two situational factors, namely marketing–IT integration policy and market uncertainty. The effect of CIO–CMO communication on product innovation performance via VCE engagement is positive and significant when marketing–IT integration policy is strong or when market uncertainty is high, but not when marketing–IT integration policy is weak or when market uncertainty is low. Theoretical contributions and managerial implications of these findings are discussed, especially on how managers can capitalize on CIO–CMO communication and VCE engagement to enhance the success of new product innovation.