The Impact of User Innovation on New Product Development Project Success in Japanese Firms, Comparative Study between B2B and B2C Projects

Abstract

This study aims to investigate the impacts of user innovation practice on NPD project success of B2B and B2C projects in Japanese manufacturing firms before Lehman Shock. Specifically, a conceptual model at firm level analysis was 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 was suggested and tested with structural equation modeling, using the empirical data which was collected from 77 B2B and 112 B2C NPD projects of Japanese manufacturing firms in 2008. Considering the implementation of user innovation, differences between B2B and B2C projects were noticed in terms of the NPD project success. Regarding B2B projects, increasing the level of user expertise, efficient R&D strategy and the degree of product newness make projects stable and efficient, consequently, the success is achieved. As for B2C projects, a high-level of user expertise and frequently user innovation activities are necessary for terms of generating financial and personnel resources, and changes in R&D strategy should be treated carefully according to the degree of product newness conversion.