IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v104y2019icp497-505.html
   My bibliography  Save this article

New service development by manufacturing firms: Effects of customer participation under environmental contingencies

Author

Listed:
  • Morgan, Todd
  • Anokhin, Sergey Alexander
  • Wincent, Joakim

Abstract

By bridging strategy, innovation, servitization, and new service development literatures, this study suggests that customer participation enhances the effectiveness of new service development strategies. The effects are particularly pronounced in the environments characterized by low competitive intensity and high complexity of customer needs. Empirical evidence is obtained from a sample of 226 large manufacturing firms with respondents representing service, functional, and general management. The results are the first to support the importance of customer participation in the new service development context. While largely consistent with the new product development research, they offer novel insights into the role of environmental contingencies in harnessing the input of customers in the new service development process for the benefit of the firm.

Suggested Citation

  • Morgan, Todd & Anokhin, Sergey Alexander & Wincent, Joakim, 2019. "New service development by manufacturing firms: Effects of customer participation under environmental contingencies," Journal of Business Research, Elsevier, vol. 104(C), pages 497-505.
  • Handle: RePEc:eee:jbrese:v:104:y:2019:i:c:p:497-505
    DOI: 10.1016/j.jbusres.2019.06.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296319303777
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jbusres.2019.06.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    2. Slater, Stanley F. & Narver, John C., 2000. "The Positive Effect of a Market Orientation on Business Profitability: A Balanced Replication," Journal of Business Research, Elsevier, vol. 48(1), pages 69-73, April.
    3. Eggert, Andreas & Thiesbrummel, Christoph & Deutscher, Christian, 2014. "Differential effects of product and service innovations on the financial performance of industrial firms," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 7(3), pages 380-405.
    4. William Ocasio, 2011. "Attention to Attention," Organization Science, INFORMS, vol. 22(5), pages 1286-1296, October.
    5. Kindström, Daniel & Kowalkowski, Christian & Sandberg, Erik, 2013. "Enabling service innovation: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 66(8), pages 1063-1073.
    6. William Ocasio & Tomi Laamanen & Eero Vaara, 2018. "Communication and attention dynamics: An attention‐based view of strategic change," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 155-167, January.
    7. Amit Nigam & William Ocasio, 2010. "Event Attention, Environmental Sensemaking, and Change in Institutional Logics: An Inductive Analysis of the Effects of Public Attention to Clinton's Health Care Reform Initiative," Organization Science, INFORMS, vol. 21(4), pages 823-841, August.
    8. J. P. Eggers & Sarah Kaplan, 2009. "Cognition and Renewal: Comparing CEO and Organizational Effects on Incumbent Adaptation to Technical Change," Organization Science, INFORMS, vol. 20(2), pages 461-477, April.
    9. Kwaku Atuahene-Gima & Anthony Ko, 2001. "An Empirical Investigation of the Effect of Market Orientation and Entrepreneurship Orientation Alignment on Product Innovation," Organization Science, INFORMS, vol. 12(1), pages 54-74, February.
    10. Todd Morgan & Sergey Alexander Anokhin & Chanho Song & Natalia Chistyakova, 2019. "The role of customer participation in building new product development speed capabilities in turbulent environments," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 119-133, March.
    11. Abbie Griffin & John R. Hauser, 1993. "The Voice of the Customer," Marketing Science, INFORMS, vol. 12(1), pages 1-27.
    12. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    13. Matthieu Crozet & Emmanuel Milet, 2017. "Should everybody be in services? The effect of servitization on manufacturing firm performance," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 820-841, December.
    14. Morgan, Todd & Obal, Michael & Anokhin, Sergey, 2018. "Customer participation and new product performance: Towards the understanding of the mechanisms and key contingencies," Research Policy, Elsevier, vol. 47(2), pages 498-510.
    15. Gebauer, Heiko & Gustafsson, Anders & Witell, Lars, 2011. "Competitive advantage through service differentiation by manufacturing companies," Journal of Business Research, Elsevier, vol. 64(12), pages 1270-1280.
    16. William Ocasio & Tomi Laamanen & Eero Vaara, 2018. "Communication and Attention Dynamics : an Attention-Based View of Strategic Change," Post-Print hal-02312047, HAL.
    17. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
    18. Carlo Salvato, 2009. "Capabilities Unveiled: The Role of Ordinary Activities in the Evolution of Product Development Processes," Organization Science, INFORMS, vol. 20(2), pages 384-409, April.
    19. Todd Morgan & Sergey Alexander Anokhin & Joakim Wincent, 2019. "Influence of market orientation on performance: the moderating roles of customer participation breadth and depth in new product development," Industry and Innovation, Taylor & Francis Journals, vol. 26(9), pages 1103-1120, October.
    20. A.S. Babu & S.A. George & R.P. Mohanty, 2003. "Manufacturing performance measurement systems: a review," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 5(5/6), pages 398-413.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khanra, Sayantan & Dhir, Amandeep & Parida, Vinit & Kohtamäki, Marko, 2021. "Servitization research: A review and bibliometric analysis of past achievements and future promises," Journal of Business Research, Elsevier, vol. 131(C), pages 151-166.
    2. Mohammad Iranmanesh & Kavigtha Mohan Kumar & Behzad Foroughi & Reza Kian Mavi & Ng Hui Min, 2021. "The impacts of organizational structure on operational performance through innovation capability: innovative culture as moderator," Review of Managerial Science, Springer, vol. 15(7), pages 1885-1911, October.
    3. Morgan, Todd & Obal, Michael & Jewell, Robert D., 2021. "Strategic change and innovation reputation: Opening up the innovation process," Journal of Business Research, Elsevier, vol. 132(C), pages 249-259.
    4. Amit Kundu & Dev Narayan Sarkar & Arabinda Bhattacharya, 2021. "The effect of uncertainty on the formulation of strategies: a study of selected Indian organizations," SN Business & Economics, Springer, vol. 1(1), pages 1-21, January.
    5. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    6. Xing, Yijun & Liu, Yipeng & Davies, Philip, 2023. "Servitization innovation: A systematic review, integrative framework, and future research directions," Technovation, Elsevier, vol. 122(C).
    7. Xinghua Fang & Jian Zhou & Hongya Zhao & Yizeng Chen, 2022. "A biclustering-based heterogeneous customer requirement determination method from customer participation in product development," Annals of Operations Research, Springer, vol. 309(2), pages 817-835, February.
    8. Yu Zhang & Yajuan Wang & Yao Li, 2021. "Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    9. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    10. Chan, Kimmy Wa & Gong, Taeshik & Sharma, Piyush & Chu, Candace, 2022. "Demystifying the impact of customer participation on citizenship behaviors through interpersonal attraction and its contingencies," Journal of Business Research, Elsevier, vol. 150(C), pages 297-310.
    11. Kindermann, Bastian & Schmidt, Corinna Vera Hedwig & Burger, Oliver & Flatten, Tessa Christina, 2022. "Why teams matter in customer involvement – The moderating effects of team social cohesion and team autonomy," Journal of Business Research, Elsevier, vol. 146(C), pages 70-83.
    12. Wang, Qingtao & Li, Julie Juan & Yang, Defeng, 2022. "Unequal participation in joint new product development: The roles of information opportunism concern and contract binding force," Journal of Business Research, Elsevier, vol. 145(C), pages 21-34.
    13. Coreynen, Wim & Vanderstraeten, Johanna & van Witteloostuijn, Arjen & Cannaerts, Nele & Loots, Ellen & Slabbinck, Hendrik, 2020. "What drives product-service integration? An abductive study of decision-makers’ motives and value strategies," Journal of Business Research, Elsevier, vol. 117(C), pages 189-200.
    14. Asif Arshad Ali & Asif Mahmood, 2023. "How Do Supply Chain Integration and Product Innovation Capability Drive Sustainable Operational Performance?," Sustainability, MDPI, vol. 16(1), pages 1-20, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tomi Laamanen, 2019. "Dynamic attention-based view of corporate headquarters in MNCs," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-15, December.
    2. Morgan, Todd & Anokhin, Sergey Alexander, 2020. "The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies," Journal of Business Research, Elsevier, vol. 113(C), pages 129-138.
    3. Matti Mäntymäki & Sami Hyrynsalmi & Antti Koskenvoima, 2020. "How Do Small and Medium-Sized Game Companies Use Analytics? An Attention-Based View of Game Analytics," Information Systems Frontiers, Springer, vol. 22(5), pages 1163-1178, October.
    4. Weiqi Dai & Mingqing Liao & Qiao Lin & Jincai Dong, 2022. "Does entrepreneurs’ proactive attention to government policies matter?," Asian Business & Management, Palgrave Macmillan, vol. 21(3), pages 396-431, July.
    5. Hortovanyi, Lilla & Szabo, Roland Zs & Fuzes, Peter, 2021. "Extension of the strategic renewal journey framework: The changing role of middle management," Technology in Society, Elsevier, vol. 65(C).
    6. John Joseph & Alex J. Wilson, 2018. "The growth of the firm: An attention‐based view," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1779-1800, June.
    7. Yu Zhang & Yajuan Wang & Yao Li, 2021. "Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    8. Matti Mäntymäki & Sami Hyrynsalmi & Antti Koskenvoima, 0. "How Do Small and Medium-Sized Game Companies Use Analytics? An Attention-Based View of Game Analytics," Information Systems Frontiers, Springer, vol. 0, pages 1-16.
    9. Pluchinotta, Irene & Salvia, Giuseppe & Zimmermann, Nici, 2022. "The importance of eliciting stakeholders’ system boundary perceptions for problem structuring and decision-making," European Journal of Operational Research, Elsevier, vol. 302(1), pages 280-293.
    10. Andrews, Daniel S. & Fainshmidt, Stav & Ambos, Tina & Haensel, Kira, 2022. "The attention-based view and the multinational corporation: Review and research agenda," Journal of World Business, Elsevier, vol. 57(2).
    11. Anja Schulze & Stefano Brusoni, 2022. "How dynamic capabilities change ordinary capabilities: Reconnecting attention control and problem‐solving," Strategic Management Journal, Wiley Blackwell, vol. 43(12), pages 2447-2477, December.
    12. Dean A. Shepherd & Jeffery S. Mcmullen & William Ocasio, 2017. "Is that an opportunity? An attention model of top managers' opportunity beliefs for strategic action," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 626-644, March.
    13. Anindya Ghosh & Thomas Klueter, 2022. "The Role of Frictions due to Top Management in Alliance Termination Decisions: Insights from Established Bio‐Pharmaceutical Firms," Journal of Management Studies, Wiley Blackwell, vol. 59(5), pages 1315-1353, July.
    14. David Hidalgo-Carvajal & Ruth Carrasco-Gallego & Gustavo Morales-Alonso, 2021. "From Goods to Services and from Linear to Circular: The Role of Servitization’s Challenges and Drivers in the Shifting Process," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    15. Angulo-Ruiz, Fernando & Pergelova, Albena & Dana, Leo Paul, 2020. "The internationalization of social hybrid firms," Journal of Business Research, Elsevier, vol. 113(C), pages 266-278.
    16. Jieun Lee & Hyung-Deok Shin & Saehwa Hong, 2021. "Servitization of Global Manufacturing Business," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 565-584, December.
    17. Schriber, Svante & Löwstedt, Jan, 2018. "Managing asset orchestration: A processual approach to adapting to dynamic environments," Journal of Business Research, Elsevier, vol. 90(C), pages 307-317.
    18. Huikkola, Tuomas & Kohtamäki, Marko & Rabetino, Rodrigo & Makkonen, Hannu & Holtkamp, Philipp, 2022. "Overcoming the challenges of smart solution development: Co-alignment of processes, routines, and practices to manage product, service, and software integration," Technovation, Elsevier, vol. 118(C).
    19. Ricarda B. Bouncken & Martin Ratzmann & Jeffrey G. Covin, 2023. "Fluffy cuffs: SME’s innovation in alliances with buyer firms," Small Business Economics, Springer, vol. 61(3), pages 1231-1251, October.
    20. Shardul Sharad Phadnis & Inga‐Lena Darkow, 2021. "Scenario planning as a strategy process to foster supply chain adaptability: theoretical framework and longitudinal case," Futures & Foresight Science, John Wiley & Sons, vol. 3(2), June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:104:y:2019:i:c:p:497-505. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.