The role of customer participation in building new product development speed capabilities in turbulent environments

Abstract

In a sample of 204 SMEs, this study investigates how customer co-creation impacts firms’ ability to increase new product development (NPD) speed. The results show firms that collaborate with customers in the NPD process at greater levels are able to increase NPD speed capabilities and commercialize products at a faster rate. In addition, environmental turbulence is investigated as to how it may impact the relationship between customer participation and NPD speed. The results show that customer participation in NPD allows firms to better manage turbulent environments by enhancing the speed at which new products are brought to market. Finally, the results show that NPD speed mediates the relationship between customer participation and the performance of new products, thus highlighting the importance of developing new products faster. The principle contribution of the study is the examination of an additional moderating factor in regard to customer participation and NPD speed. The second contribution of this research is that while previous studies have examined the individual impacts of customer participation on NPD speed and NPD speed on NPD performance, this research statistically demonstrates the mediating process among the three constructs.