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Influence of Market Orientation on Absorptive Capacity: On the Bright and Dark Sides of Customer Participation in New Product Development—An Abstract
University of Massachusetts Lowell.
Kent State University.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0002-8770-8874
2017 (English)In: Marketing at the Confluence between Entertainment and Analytics: Proceedings of the 2016 Academy of Marketing Science (AMS) World Marketing Congress / [ed] Patricia Rossi, Cham: Springer, 2017, p. 413-Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

Extant research suggests that open innovation may be a double-edged sword. On the positive side, it may help enhance new product development (NPD) efforts by bringing in required knowledge and resources. Conversely, it may increase a firm’s dependence on customer input for the NPD process. We suggest that breadth versus depth of customer participation may be the key to enhancing a firm’s learning efforts and in turn, NPD performance. In this study, we predict and find that market orientation positively influences a firm’s absorptive capacity including the ability to acquire, transform, assimilate, and exploit external knowledge for commercial ends. We find that the influence of market orientation on absorptive capacity may either be enhanced by having customers participate in a greater number of activities throughout the development process (customer participation breadth) or diminished when customers are involved at deeper levels (customer participation depth). As we report that a firm’s absorptive capacity capability is positively related to NPD performance and mediates the relationship between market orientation and NPD performance, the results suggest that there is both a bright side and dark side of customers participating in NPD activities and the exact involvement of customers is a critical decision. This has clear implications for the dialogues about customer involvement in industrial settings and management of industrial customer relationships.

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Extant research suggests that open innovation may be a double-edged sword. On the positive side, it may help enhance new product development (NPD) efforts by bringing in required knowledge and resources. Conversely, it may increase a firm’s dependence on customer input for the NPD process. We suggest that breadth versus depth of customer participation may be the key to enhancing a firm’s learning efforts and in turn, NPD performance. In this study, we predict and find that market orientation positively influences a firm’s absorptive capacity including the ability to acquire, transform, assimilate, and exploit external knowledge for commercial ends. We find that the influence of market orientation on absorptive capacity may either be enhanced by having customers participate in a greater number of activities throughout the development process (customer participation breadth) or diminished when customers are involved at deeper levels (customer participation depth). As we report that a firm’s absorptive capacity capability is positively related to NPD performance and mediates the relationship between market orientation and NPD performance, the results suggest that there is both a bright side and dark side of customers participating in NPD activities and the exact involvement of customers is a critical decision. This has clear implications for the dialogues about customer involvement in industrial settings and management of industrial customer relationships.

Place, publisher, year, edition, pages
Cham: Springer, 2017. p. 413-
Series
Developments in Marketing Science: Proceedings of the Academy of Marketing Science, ISSN 2363-6165, E-ISSN 2363-6173
National Category
Other Engineering and Technologies
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-63392DOI: 10.1007/978-3-319-47331-4_74Scopus ID: 2-s2.0-85125189997ISBN: 978-3-319-47330-7 (print)ISBN: 978-3-319-47331-4 (electronic)OAI: oai:DiVA.org:ltu-63392DiVA, id: diva2:1096129
Conference
2016 Academy of Marketing Science (AMS) World Marketing Congress, Paris, 20-22 July, 2016
Available from: 2017-05-17 Created: 2017-05-17 Last updated: 2025-02-10Bibliographically approved

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Wincent, Joakim

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