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Customer and Supplier Involvement in Design: The Moderating Role of Incremental and Radical Innovation Capability
Author(s) -
Menguc Bulent,
Auh Seigyoung,
Yannopoulos Peter
Publication year - 2014
Publication title -
journal of product innovation management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.646
H-Index - 144
eISSN - 1540-5885
pISSN - 0737-6782
DOI - 10.1111/jpim.12097
Subject(s) - business , new product development , product innovation , contingency , competitive advantage , moderation , resource (disambiguation) , product (mathematics) , supplier relationship management , industrial organization , marketing , resource based view , process management , dynamic capabilities , knowledge management , computer science , supply chain management , supply chain , computer network , linguistics , philosophy , geometry , mathematics , machine learning
More and more firms are leveraging design as a resource to gain the upper hand in today's competitive business market. To this end, this study draws on the resource‐based view ( RBV ) of the firm to examine the relationship between customer and supplier involvement in the design process and new product performance. The research also extends the RBV to a contingency lens by introducing product innovation capability (incremental and radical) as a moderator to draw the boundary conditions of the impact of customer/supplier involvement in design on new product performance. Using data collected from C anadian high‐tech companies, the findings provide strong support for the hypotheses in that customer involvement in design helps new product performance under high incremental innovation capability but harms new product performance under high radical innovation capability. In contrast, supplier involvement in design was beneficial to new product performance under both high incremental and radical innovation capability. The managerial implications for the role of design under different innovation capabilities are discussed.