A value cocreation strategy model for improving product development performance

Abstract

Purpose

The purpose of this study is to propose a model of a value cocreation strategy (VCS) for analyzing how enterprises adopt innovative, marketing, and design strategies to achieve their performance goals through cocreation.

Design/methodology/approach

In the present study, a case study was conducted to establish a preliminary model. Subsequently, 1,000 NPD project managers in information and communications technology industries were approached to complete a two-stage questionnaire survey. The first survey investigated the VCSs they adopted for their marketing, innovation and design activities (valid questionnaires recovered=283). The valid respondents completed a second survey measuring their NPD performance 18 months after launching a new product (valid questionnaires recovered=247).

Findings

A conceptual was constructed to explain the effects of innovation marketing and design cocreation strategies on NPD performance. A partial least squares method was used to test the model showing a good fit between the model and the survey data, indicating the applicability of the proposed model. The innovation marketing and design cocreation strategies of the enterprises affected their NPD performance. Enterprises adopting diverse cocreation strategies improved their NPD performance. The cocreation strategies in the model were independent and mediating variables to NPD performance. A qualitative comparative analysis was performed to examine which strategy configurations affected NPD performance and to explore any regular patterns in them. Finally, a cluster analysis was conducted to investigate four cocreation strategies: market development, technology improvement, cost direction and customer service.

Research limitations/implications

Whether different industry categories involve different characteristics and whether different corporate cultures cause inconsistent result in value cocreation warrants further in-depth investigation. In addition, the two surveys conducted in this study were separated by 18 months, and thus, only the short-term NPD performance could be presented. Future studies are recommended to conduct an extensive exploration of different industries, administer long-term surveys, investigate the different levels of influence of various types of enterprise on the proposed research model or examine the degree of difference in the mechanisms and methods adopted for elevating innovation performance.

Practical implications

Enterprises can reference the proposed approach to optimize their product development and services according to their organizational resources and market advantages to increase their market coverage.

Originality/value

This study was the first empirical study to examine critical factors, such as product innovation, marketing, design and value cocreation strategies, and NPD performance by administering two-stage surveys. Enterprises can reference the proposed method according to their organizational resources and market advantages to develop products and services efficiently and face the ever-changing market.

Citation

Hsu, Y. (2016), "A value cocreation strategy model for improving product development performance", Journal of Business & Industrial Marketing, Vol. 31 No. 5, pp. 695-715. https://doi.org/10.1108/JBIM-11-2014-0221