Does Supplier And Customer Involvement In New Product Development Enhance The Performance Of Product? Evidence from Pakistani Banking Sector

Abstract

The objective of this research is to find the impact of supplier and customer involvement on new product development. This study aims to explore what factors affect supplier and customer involvement altogether and how such involvement affects new product performance. The study is about the empirical survey data from 190 questionnaires distributed in three private banks of Pakistan. The study found that modular design, product innovation, and internal coordination are positively correlated with the supplier and customer involvement. Such involvement and product innovation leads to better new product performance. The study is limited to the use of cross-sectional data The study not only provides new empirical evidence to support the importance of supply chain management in product development, but also extends existing literature to identify new contextual factors for such involvement. Keywords: Product development, Supplier involvement, Customer involvement, Modularity, Innovativenes