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Innovation and business success: The mediating role of customer participation


  • Ngo, Liem Viet
  • O'Cass, Aron


Innovation and the customer participation are central issues in research focusing on the performance of firms. However, the current literature offers little guidance on the extent of connection between firm innovation capabilities and customer participation and how they work together to enhance the quality of services and drive firm performance. Drawing on the literature focusing on firm capabilities and relationship management particularly customer participation, this study proposes that customer participation may account for the effects of service firm innovation capabilities (both technical and non-technical) on service quality. Empirical evidence from 259 firms supports this proposition. In addition, the study also finds that service quality positively enhances firm performance.

Suggested Citation

  • Ngo, Liem Viet & O'Cass, Aron, 2013. "Innovation and business success: The mediating role of customer participation," Journal of Business Research, Elsevier, vol. 66(8), pages 1134-1142.
  • Handle: RePEc:eee:jbrese:v:66:y:2013:i:8:p:1134-1142
    DOI: 10.1016/j.jbusres.2012.03.009

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    References listed on IDEAS

    1. Fariborz Damanpour & Richard M. Walker & Claudia N. Avellaneda, 2009. "Combinative Effects of Innovation Types and Organizational Performance: A Longitudinal Study of Service Organizations," Journal of Management Studies, Wiley Blackwell, vol. 46(4), pages 650-675, June.
    2. Payne, Adrian & Storbacka, Kaj & Frow, Pennie & Knox, Simon, 2009. "Co-creating brands: Diagnosing and designing the relationship experience," Journal of Business Research, Elsevier, vol. 62(3), pages 379-389, March.
    3. Branzei, Oana & Vertinsky, Ilan, 2006. "Strategic pathways to product innovation capabilities in SMEs," Journal of Business Venturing, Elsevier, vol. 21(1), pages 75-105, January.
    4. Yi, Youjae & Nataraajan, Rajan & Gong, Taeshik, 2011. "Customer participation and citizenship behavioral influences on employee performance, satisfaction, commitment, and turnover intention," Journal of Business Research, Elsevier, vol. 64(1), pages 87-95, January.
    5. Mohan V. Tatikonda & Mitzi M. Montoya-Weiss, 2001. "Integrating Operations and Marketing Perspectives of Product Innovation: The Influence of Organizational Process Factors and Capabilities on Development Performance," Management Science, INFORMS, vol. 47(1), pages 151-172, January.
    6. Yilmaz, Cengiz & Alpkan, Lutfihak & Ergun, Ercan, 2005. "Cultural determinants of customer- and learning-oriented value systems and their joint effects on firm performance," Journal of Business Research, Elsevier, vol. 58(10), pages 1340-1352, October.
    7. Deborah L. Kellogg & Richard B. Chase, 1995. "Constructing an Empirically Derived Measure for Customer Contact," Management Science, INFORMS, vol. 41(11), pages 1734-1749, November.
    8. Jiménez-Jiménez, Daniel & Sanz-Valle, Raquel, 2011. "Innovation, organizational learning, and performance," Journal of Business Research, Elsevier, vol. 64(4), pages 408-417, April.
    9. Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
    10. O'Cass, Aron & Ngo, Liem Viet, 2007. "Balancing external adaptation and internal effectiveness: Achieving better brand performance," Journal of Business Research, Elsevier, vol. 60(1), pages 11-20, January.
    11. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    12. Marianne Abramovici & Laurence Bancel-Charensol, 2004. "How to take customers into consideration in service innovation projects," The Service Industries Journal, Taylor & Francis Journals, vol. 24(1), pages 56-78, January.
    13. Weerawardena, Jay & O'Cass, Aron & Julian, Craig, 2006. "Does industry matter? Examining the role of industry structure and organizational learning in innovation and brand performance," Journal of Business Research, Elsevier, vol. 59(1), pages 37-45, January.
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    Cited by:

    1. Foroudi, Pantea & Jin, Zhongqi & Gupta, Suraksha & Melewar, T.C. & Foroudi, Mohammad Mahdi, 2016. "Influence of innovation capability and customer experience on reputation and loyalty," Journal of Business Research, Elsevier, vol. 69(11), pages 4882-4889.
    2. repec:spr:intemj:v:13:y:2017:i:4:d:10.1007_s11365-017-0443-x is not listed on IDEAS
    3. Holmlund, Maria & Kowalkowski, Christian & Biggemann, Sergio, 2016. "Organizational behavior in innovation, marketing, and purchasing in business service contexts—An agenda for academic inquiry," Journal of Business Research, Elsevier, vol. 69(7), pages 2457-2462.
    4. repec:spr:amsrev:v:6:y:2016:i:1:d:10.1007_s13162-016-0076-1 is not listed on IDEAS
    5. repec:eee:joreco:v:41:y:2018:i:c:p:1-10 is not listed on IDEAS
    6. Hidalgo, Antonio & D'Alvano, Luigi, 2014. "Service innovation: Inward and outward related activities and cooperation mode," Journal of Business Research, Elsevier, vol. 67(5), pages 698-703.
    7. Ren, Shengce & Eisingerich, Andreas B. & Tsai, Huei-ting, 2015. "Search scope and innovation performance of emerging-market firms," Journal of Business Research, Elsevier, vol. 68(1), pages 102-108.
    8. repec:eee:tefoso:v:124:y:2017:i:c:p:271-282 is not listed on IDEAS
    9. Nguyen, Bang & Yu, Xiaoyu & Melewar, T.C. & Gupta, Suraksha, 2016. "Critical brand innovation factors (CBIF): Understanding innovation and market performance in the Chinese high-tech service industry," Journal of Business Research, Elsevier, vol. 69(7), pages 2471-2479.
    10. Chae, Heeju & Ko, Eunju, 2016. "Customer social participation in the social networking services and its impact upon the customer equity of global fashion brands," Journal of Business Research, Elsevier, vol. 69(9), pages 3804-3812.
    11. Fábio Frezatti & Diógenes de Souza Bido & Ana Paula Capuano da Cruz & Maria José de Camargo Machado, 2015. "The Structure of Artefacts of Management Control in the Innovation Process: Does Exist Association with the Strategic Profile?," Brazilian Business Review, Fucape Business School, vol. 12(1), pages 128-153, January.
    12. repec:eee:jbrese:v:76:y:2017:i:c:p:127-135 is not listed on IDEAS
    13. repec:eee:joreco:v:28:y:2016:i:c:p:149-154 is not listed on IDEAS
    14. Ren, Shengce & Tsai, Huei-Ting & Eisingerich, Andreas B., 2016. "Case-based asymmetric modeling of firms with high versus low outcomes in implementing changes in direction," Journal of Business Research, Elsevier, vol. 69(2), pages 500-507.
    15. Santos, David Ferreira Lopes & Basso, Leonardo Fernando Cruz & Kimura, Herbert & Kayo, Eduardo Kazuo, 2014. "Innovation efforts and performances of Brazilian firms," Journal of Business Research, Elsevier, vol. 67(4), pages 527-535.
    16. repec:eee:respol:v:47:y:2018:i:2:p:498-510 is not listed on IDEAS


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