Do switching costs hurt new product development performance? The role of relationship quality and customer involvement

Abstract

Purpose

From the dedication–constraint perspective, this study aims to complement ongoing discussions on the effects of switching costs on performance and explain the role of customer involvement and relationship quality in the relationship between switching costs and performance.

Design/methodology/approach

After collecting data from Chinese manufacturing firms, the authors employed structural equation modeling to test their theoretical model incorporating switching costs, new product development performance, relationship quality and customer involvement.

Findings

The findings show that switching costs negatively affect three dimensions of new product development performance covering new product development market performance, new product development speed, new product development cost. More importantly, relationship quality positively moderates the relationship between switching costs and new product development performance, while customer involvement takes positive moderation effects.

Originality/value

These conclusions contribute to the knowledge of switching costs and supplier–customer relationship, and provide theoretical contributions and managerial insights for both academics and practitioners.

Citation

Li, Y., Ndubisi, N.O., Xu, J. and Li, G. (2022), "Do switching costs hurt new product development performance? The role of relationship quality and customer involvement", Management Decision, Vol. 60 No. 9, pp. 2552-2571. https://doi.org/10.1108/MD-10-2021-1321