Innovation and new product development are highly regarded as key growth
strategies in order to capture market opportunities and meet customer demands in the
context of an increasingly competitive environment and radical market dynamics.
Innovation, market orientation, and customer involvement are assumed as critical
factors for new product success and are linked to a company’s business success.
Many scholars have concluded that customer involvement plays a key role in
understanding market needs and is key to the success of any innovation; however;
there is no clear indication of the kinds of involvement or the extent of involvement
that promotes product innovation and product performance on industrial products in
the B-to-B industry.
The key question in this study is ‘What kind of and how much customer
involvement promotes and restrains new product innovativeness and performance?’.
The basic research objective was to provide a correlational analysis of
customer involvement, innovativeness, and performance of new product development
and to determine the kind of customer involvement that promotes or restrains product
innovation and performance.
The survey sample for this study was drawn from the company database of
new product management, and identified a total of 122 available projects and finalized
101 projects for the target survey. The survey in this study consisted of two steps: the
pilot survey and the main survey via the internet survey tool, Survey Monkey.com.
The final survey consisted of 44 questions in 5 different categories using the Likert
response scale. The final collected data set was 83 (82% of the total population) and
this data set was 4.5 confidence interval at 95% confidence level. A total of 24
hypotheses were developed, and hypothesis testing was performed using the multiple
The findings of this study exhibited that customer involvement on product
development does indeed promote product innovativeness but co-working and joint
development does not increase product performance. Many organizations are currently
looking for partnership and so-called “open innovations,” but the goal of these
activities must be clear in order for joint developments and co-working to promote
product innovativeness and performance. Further studies on the role of co-working
and joint development regarding product development would be very valuable under
the recent environment of strategy development such as open innovation.
There were no significant effects of customer involvement on each
developing stage of product innovativeness and product performance.