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

Yi Li, Nelson Oly Ndubisi, Jinpeng Xu, Gang Li

Management Decision

ISSN: 0025-1747

Article publication date: 19 July 2022

Issue publication date: 30 August 2022

596

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.

Keywords

Acknowledgements

This work was supported by the National Nature Science foundation of China (No. 71832011), the Social Science Foundation of Shaanxi Province (No. 2020R033), the Fundamental Research Funds for the Central Universities (No. JB210601 and No. JB210606), the Science and Technology Innovation Team Plan of Shaanxi Province (No. 2020TD-006), and the Youth Innovation Team of Shaanxi Universities.

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

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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