The impact of customer involvement of innovation outcomes : The role of moderator variables

Abstract

Theoretically anchored in the Resource Based View of the firm, this study investigates the effect that customer involvement has on innovation outcomes. Our results, based on structural equation modeling of survey data from 296 Hungarian firms, show that involving customers does not lead directly to better financial incomes, instead the link between innovation performance and customer involvement is mediated by innovation novelty. This finding contributes to a more nuanced understanding of how customer involvement helps innovation outcomes. The findings highlight the role of contingency by showing that differentiation strategy positively, and knowledge sharing negatively moderate the positive effect of customer involvement on innovativeness. The study concludes with valuable theoretical and managerial implications and suggestions for future research.