Supplier and customer involvement on new product performance

Abstract

Purpose – Recent studies have found inconsistent findings on the impact of supplier and customer involvement on new product development. This study thus aims to explore what contextual factors affect supplier and customer involvement altogether and how such involvement affects new product performance.Design/methodology/approach – The study used structural equation modelling to analyze empirical survey data from 251 manufacturers in Hong Kong.Findings – The study found that modular design, product innovation, and internal coordination are positively correlated with the supplier and customer involvement. Such involvement and product innovation lead to better new product performance.Research limitations/implications – The study is limited to the use of cross‐sectional data and a single key informant approach, and the industry structure of the sampled industries.Practical implications – The study examines the contextual factors of supplier and customer involvement and how such involvement relates to new produ...