The effects of platform governance mechanisms on customer participation in supplier new product development

PurposeThe business environment is changing and so are the rules of doing business. Constant innovation is the key to win in this dynamic marketplace, so that the new ideas get converted into new marketable products quickly with the least possible mistake. One way to inculcate innovation is by the participation of customers in the new product development (NPD) process. Platforms like social media has provided an opportunity for firms to communicate, co-create and collaborate with customers. The present study aims to understand the customers' participation in three phases, namely idea generation, development and commercialization of the NPD process for its effectiveness.Design/methodology/approachWith the help of review of existing literature, a theoretical model is proposed. This model is then empirically evaluated with data of 213 respondents using structural equation modelling (SEM). The respondents are majorly young social media users in India.FindingsThe results highlight that customer involvement is important in idea generation and commercialization phase of NPD process for its effectiveness. Also, the effectiveness of NPD process affects the financial performance of the firm. The use of social media is considered for its mediating role in NPD process effectiveness during the three phases. The results show that it has an effective role to play during the idea generation phase.Originality/valueConsumers’ perspective concerning usage of social media for their participation in NPD is an unexplored area in general and in the Indian context in particular. To fill this research gap the present study is carried out.

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Drivers and consequences of customer participation into value co-creation: a field experiment

Journal of Product & Brand Management ◽

10.1108/jpbm-04-2020-2847 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Mevludiye Guzel ◽

Bülent Sezen ◽

Umit Alniacik

Keyword(s):

Product Development ◽

Field Experiment ◽

New Product Development ◽

Product Category ◽

Holistic Approach ◽

New Product ◽

Customer Participation ◽

Willingness To Participate ◽

Content Type ◽

Before And After

Purpose This paper aims to analyze value co-creation (VCC) in new product development from consumer’s perspective. It offers a holistic approach to consumers’ VCC behavior with its before (drivers) and after (consequences) stages. Design/methodology/approach Three consecutive studies are carried out to test the hypotheses examining the antecedents and results of co-creation behavior, as well as the behavior itself in a new headphones design context. The experimental data have been collected from 934 university students within a period of six months. Findings Findings suggest that extraversion and openness to experience increase consumers’ willingness to participate in VCC. Celebrity endorsers and product category involvement also affect this tendency. When consumers display co-creation behavior, they intend to purchase the product to be co-created. However, they are especially keen to buy this co-created product when their contributions are embodied in it. Originality/value Previous studies focus on intentions, lacking a detailed analysis of actual VCC behavior. By shedding light on co-creation behavior with its before and after stages, this paper contributes to co-creation literature with a field experiment. Consumers’ co-creation behavior has been observed in the context of new product development, which is mostly occupied by business to business research. Therefore, the results also add to research on new product development in business to consumer contexts.

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