The Effect of Crowd Sourcing on Social Media in New Product Development

Abstract

The broad objective is to examine the effect of crowd sourcing on social media in new product development using primary source of data which was randomly sourced from Lagos state residents, Nigeria. However, Pearson correlation and regression analysis were used as the estimation techniques in the study. The result of the correlation analysis revealed that new product social media (NPSM) and crowd sourcing (CS) has positive and significant relationship between the two variables, NPSM and BP shows a positive correlation between NPSM and BP, the correlation value of NPSM and firm performance (FP) depicts a positive relationship between each other, while the result of NPSM and customer convenience shows positive correlation between the two variables. The regression coefficient revealed that at constant, there exist positive but insignificant impacts on the dependent variable. Furthermore, crowd sourcing coefficient exhibits a positive and significant impact on the new product social media, business productivity (BP) exhibits negative and insignificant impact on new product social media, firm performance has a positive impact but not significant to influence new product social media, while customer convenience has positive and significant impact on new product social media during the study period.