The Impact of user innovation on new product development project success in Japanese firms
Xue Wang, Akio Nagahira
User Innovation, Japanese firms,new product development (NPD)project success, structural equation modeling (SEM)
This study aims to investigate the impacts of user innovation practice on NPD project success in Japanese manufacturing firms before Lehman Shock. Specifically, a conceptual model at firm level analysis is proposed, consisting of four phases in which a linear process (1) degree of new product newness to the firm (marketing newness and technical newness); (2) research and development strategy; (3) user innovation (user expertise, user innovation implementation); (4) NPD project success (effectiveness and efficiency). Our model is suggested and tested with structural equation modeling, using the empirical data which was collected from 126 Japanese manufacturing firms in 2008. The results indicate that user expertise and the implementation of user innovation have a significant effect on the efficiency of NPD projects. However, neither R&D strategy nor the degree of product market, technological newness management is related to user innovation implementation. Moreover, we find support for the effectiveness of NPD projects is positively affected by NPD efficiency.