Title: Understanding the influence of customers on product innovation

Authors: Danni Chang; Chun-Hsien Chen

Addresses: School of Mechanical and Aerospace Engineering, Nanyang Technological University, Singapore ' School of Mechanical and Aerospace Engineering, Nanyang Technological University, Singapore

Abstract: 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.

Keywords: product innovation; hypothesis testing; interactive multiple regression model; curve fitting model; customer influence; new product development; simulation; NPD.

DOI: 10.1504/IJASM.2014.065350

International Journal of Agile Systems and Management, 2014 Vol.7 No.3/4, pp.348 - 364

Received: 30 Nov 2013
Accepted: 01 May 2014

Published online: 22 Oct 2014 *

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