Understanding the influence of customers on product innovation

In this article, the influence of customers on product innovation is examined through a hypothesis testing study. Based on an analysis of relevant research, two hypotheses are developed: H1, customers are not the most significant factor positively affecting product innovation in new product development (NPD); and H2, customers have curved effects on product innovation in NPD. To test the hypotheses, an interactive multiple regression model and a curve fitting model are developed respectively. The simulation results showed that the most significant positive influence on product innovation results is made by external resources such as ‘consultants, commercial lab or private R&D institutions’. Moreover, different amounts of input information provided by customers/clients/end-users have curved impacts on innovation results. It is suggested that firms should properly allocate their research focus on customers and other important factors. Moreover, it may be a promising way to improve product innovation through seeking support from external resources.

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