Skip to main content

Advertisement

Log in

Collaborative e-product development and product innovation in a demand-driven network: the moderating role of eCRM

  • Focus Theme
  • Published:
Electronic Markets Aims and scope Submit manuscript

Abstract

Customer relationships, product development, data integration and demand-driven supply chains are key concepts for companies that wish to remain competitive in today’s global economy. To address this important information management issue, the present study examines how, within a demand-driven network context, an eCRM can influence the interorganizational product development process between a manufacturer and its key customers. The theoretical model, built on research related to a technology assimilation model based on Fichman’s (2000) work, was tested on data from 104 manufacturers in the wireless equipment sector. The results show that the adoption of an eCRM does not moderate the relationship between collaborative e-product development involving a manufacturer and its key customers and product innovation within the manufacturer itself. Moderated regression analyses also demonstrate that, among the manufacturers that have adopted an eCRM, the impact of collaborative e-product development by the manufacturer and its key customers on product innovation within the company will be stronger when investments in the eCRM implementation, internal integration of the eCRM, and eCRM usage are higher than lower. Finally, the findings show that investments in the eCRM implementation, internal integration of eCRM and eCRM usage are also antecedents of product innovation within the manufacturer. This contribution, at the intersection of the CRM and product development research streams, should give academics and practitioners alike a better understanding of the role of eCRMs in the product development process.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

References

  • Adebanjo, D. (2003). Classifying and selecting e-CRM applications: An analysis-based proposal. Management Decision, 41(6), 570–577.

    Article  Google Scholar 

  • Ahearne, M., Douglas, H., & Niels, S. (2007). Why sales reps should welcome information technology: Measuring the impact of CRM-based IT on sales effectiveness. International Journal of Research in Marketing, 24(4), 336–349.

    Article  Google Scholar 

  • Ang, L., & Buttle, F. (2006). CRM software applications and business performance. Journal of Database Marketing and Customer Strategy Management, 14(1), 4–17.

    Article  Google Scholar 

  • Arnold, H. J. (1982). Moderator variables: A clarification of conceptual, analytic and psychometric issues. Organizational Behavior and Human Performance, 29, 143–174.

    Article  Google Scholar 

  • Baba, Y., & Nobeoka, K. (1998). Towards knowledge-based product development: The 3-D CAD model of knowledge creation. Research Policy, 26(6), 643–659.

    Article  Google Scholar 

  • Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16, 74–94.

    Article  Google Scholar 

  • Banerjee, S., & Kumar, R. L. (2002). Managing electronic interchange of business documents. Communications of the ACM, 45(7), 96–103.

    Article  Google Scholar 

  • Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic and statistical considerations. Journal of Personality and Social Psychology, 51, 1173–1182.

    Article  Google Scholar 

  • Bentler, P. M. (1990). Comparative fit indexes in structural models. Psychological Bulletin, 107(3), 238–246.

    Article  Google Scholar 

  • Bentler, P. M., & Bonett, D. G. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88, 588–606.

    Article  Google Scholar 

  • Brynjolfsson, E., & Yang, S. (1996). Information technology and productivity: A review of literature. Advances in Computers, 43, 179–214.

    Article  Google Scholar 

  • Burkett, M. (2005). The perfect product launch. Supply Chain Management Review, 9(5), 12–13.

    Google Scholar 

  • Chen, Y., & Su, C. (2006). A Kano-CKM model for customer knowledge discovery. Total Quality Management and Business Excellence, 17(5), 589–608.

    Article  Google Scholar 

  • Choudhury, V. (1997). Strategic choices in the development of interorganizational information systems. Information Systems Research, 8(1), 1–24.

    Article  Google Scholar 

  • Coltman, T. (2007). Can superior CRM capabilities improve performance in banking? Journal of Financial Services Marketing, 12(2), 102–114.

    Article  Google Scholar 

  • Cooper, B. L., Watson, H. J., Wixom, B. H., & Goodhue, D. L. (2000). Data warehousing supports corporate strategy at first American corporation. MIS Quarterly, 24(4), 547–567.

    Article  Google Scholar 

  • Corso, M., Martini, A., Paolucci, E., & Pellegrini, L. (2003). Knowledge management configurations in Italian small-to-medium enterprises. Integrated Manufacturing Systems, 14(1), 46–56.

    Article  Google Scholar 

  • Cousins, P. D. (2005). The alignment of appropriate firm and supply strategies for competitive advantage. International Journal of Operations and Production Management, 25(5), 403–428.

    Article  Google Scholar 

  • Darrow, A. L., & Kahl, D. R. (1982). A comparison of moderated regression techniques considering strength of effect. Journal of Management, 8, 35–47.

    Article  Google Scholar 

  • Davenport, T. (1993). Process innovation: Reengineering work through information technology. Boston: Harvard School.

    Google Scholar 

  • Davidson, W. H. (1993). Beyond re-engineering: The three phases of business transformation. IBM Systems Journal, 32(1), 65–79.

    Article  Google Scholar 

  • De Luca, L., & Atuahene-Gima, K. (2007). Market knowledge dimensions and cross-functional collaboration: Examining the different routes to product innovation performance. Journal of Marketing, 71, 95–112.

    Article  Google Scholar 

  • Delinchant, B., Riboulet, V., Gerbaud, L., Marin, P., Noell, F., & Wurtz, F. (2002). E-cooperative design among mechanical and electrical engineers: Implications for communication between professional cultures. IEEE Transactions on Professional Communication, 45(4), 231–249.

    Article  Google Scholar 

  • Devaraj, S., & Kohli, R. (2003). Information technology payoff paradox and system use: Is actual usage the missing link? Management Science, 49(3), 273–289.

    Article  Google Scholar 

  • Devaraj, S., Wei, J., & Krajewski, L. (2007). Impact of ebusiness technologies on operational performance: The role of production information integration in the supply chain. Journal of Operations Management, 25, 1199–1216.

    Article  Google Scholar 

  • Dickie, J. (2006). Invest in CRM beyond applications. CRM Magazine, 10(9), 20.

    Google Scholar 

  • Dillman, D. A. (2000). Mail and internet surveys: The tailored design method. New York: Wiley.

    Google Scholar 

  • Doherty, N. F., & Lockett, N. J. (2007). Closing the gap between the expectations of relationship marketing and the reality of E-CRM. International Journal of E-Business Research, 3(2), i–vi.

    Google Scholar 

  • Dyché, J. (2001). The CRM handbook: A business guide to customer relationship management pp. 3–18. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Erhun, F., Gonçalves, P., & Hopman, J. (2007). The art of managing new product transitions. MIT Sloan Management Review, 48(3), 73–80.

    Google Scholar 

  • Fichman, R. G. (2000). The diffusion and assimilation of information technology innovations. In R. W. Zmud (Ed.), Framing the domains of IT management: Projecting the future ... through the past. Cincinnati, OH: Pinnaflex Educational Resources.

    Google Scholar 

  • Freeman, C. (1982). The economics of industrial innovation. London: Frances Printer.

    Google Scholar 

  • Frohlich, M. T., & Westbrook, R. (2002). Demand chain management in manufacturing and services: Web-based integration, drivers and performance. Journal of Operations Management, 2(6), 729–745.

    Article  Google Scholar 

  • Garcia, R., & Calantone, R. (2002). A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management, 19(2), 110–132.

    Article  Google Scholar 

  • Gee, S. (1981). Technology transfer, innovation and international competitiveness. New York: Wiley.

    Google Scholar 

  • Gefen, D. (2003). Assessing unidimensionality through LISREL: An explanation and example. Communications of the Association for Information Systems, 12, 23–47.

    Google Scholar 

  • Gefen, D., Straub, D. W., & Boudreau, M. (2000). Structural equation modeling and regression: Guidelines for research practice. Communications of the Association for Information Systems, 4(7), 41–79.

    Google Scholar 

  • Geib, M., Kolbe, L. M., & Brenner, W. (2006). CRM collaboration in financial services networks: A multi-case analysis. Journal of Enterprise Information Management, 19(6), 591–607.

    Article  Google Scholar 

  • Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186–192.

    Article  Google Scholar 

  • Gopal, G., & Cline, S. (2007). Driving towards sustainable profitability: Transportation service providers and customer relationship management. Supply Chain Management, 12(2), 85–87.

    Article  Google Scholar 

  • Grönroos, C. (1994). From marketing mix to relationship marketing: Towards a paradigm shift in marketing. Management Decision, 32, 4–20.

    Article  Google Scholar 

  • Hair, J. F., Anderson, R. E., & Tatham, R. L. (1998). Multivariate data analysis (5th ed.). Upper Saddle River, NJ: Prentice Hall.

    Google Scholar 

  • Hart, P. J., & Saunders, C. S. (1998). Emerging electronic partnerships: Antecedents and dimensions of EDI use from the supplier’s perspective. Journal of Management Information Systems, 14(4), 87–112.

    Google Scholar 

  • Heikkila, J. (2002). From supply to demand chain management: Efficiency and customer satisfaction. Journal of Operations Management, 20(6), 747–767.

    Article  Google Scholar 

  • Helander, M., & Jiao, J. (2002). Research on e-product development (ePD) for mass customization. Technovation, 22(11), 717–724.

    Article  Google Scholar 

  • Hendricks, K. B., Singhal, V. R., & Stratman, J. K. (2007). The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations. Journal of Operations Management, 25(1), 65–82.

    Article  Google Scholar 

  • Jelinek, R., Ahearne, M., Mathieu, J., & Schillewaert, N. (2006). A longitudinal examination of individual, organizational and contextual factors on technology adoption and job performance. Journal of Marketing Theory and Practice, 14(1), 7–23.

    Article  Google Scholar 

  • Karimi, J., Somers, T. M., & Gupta, Y. P. (2001). Impact of information technology management practices on customer service. Journal of Management Information Systems, 17(4), 125–158.

    Google Scholar 

  • Kim, B., & Oh, H. (2005). The impact of decision-making sharing between supplier and manufacturer on their collaboration performance. Supply Chain Management, 10(3/4), 223–237.

    Google Scholar 

  • Kim, J. W., Choi, J., Qualls, W., & Park, J. (2004). The impact of CRM on firm- and relationship-level performance in distribution networks. Communications of the Association for Information Systems, 14, 632–652.

    Google Scholar 

  • Kincaid, J. W. (2003). Customer relationship management: Getting it right!. Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Kohli, R., & Devaraj, S. (2003). Measuring information technology payoff: A meta-analysis of structural variables in firm-level empirical research. Information Systems Research, 14(2), 127–145.

    Article  Google Scholar 

  • Kopczak, L. R., & Johnson, M. E. (2003). The supply management effect. MIT Sloan Management Review, 44(3), 27–34.

    Google Scholar 

  • Krishnan, V., Eppinger, S. D., & Whitney, D. E. (1997). A model-based framework to overlap product development activities. Management Science, 43(4), 437–451.

    Article  Google Scholar 

  • Kumar, A. (2007). From mass customization to mass personalization: A strategic transformation. International Journal of Flexible Manufacturing Systems, 19(4), 533–548.

    Article  Google Scholar 

  • Laurindo, F. J. B., & De Carvalho, M. M. (2005). Changing product development process through information technology: A Brazilian case. Journal of Manufacturing Technology Management, 16(3), 312–327.

    Article  Google Scholar 

  • Lee, A. H. I., Chen, H. H., & Tong, Y. (2008). Developing new products in a network with efficiency and innovation. International Journal of Production Research, 46(17), 4687–4707.

    Article  Google Scholar 

  • Lefebvre, L. A., & Lefebvre, E. (2002). E-commerce and virtual enterprises: Issues and challenges for transition economies. Technovation, 22(5), 313–323.

    Article  Google Scholar 

  • Lefebvre, L. A., Lefebvre, É., Elia, E., & Boeck, H. (2005). Exploring B-to-B e-commerce adoption trajectories in manufacturing SMEs. Technovation, 25(12), 1443–1456.

    Article  Google Scholar 

  • Lefebvre, É., Lefebvre, L. A., Cassivi, L., Amarouch, A., & Le Hen, G. (2008). E-Collaboration in the automotive supply chain: Determinants and impacts on performance in innovation systems and firm performance. In C. van Beers, A. Kleinknecht, R. Ortt, & R. Verburg (Eds.), Determinants of innovative behaviour: A firm’s internal practices and its external environment. Houndmills, UK: Palgrave.

    Google Scholar 

  • Li, H., & Atuahene-Gima, K. (2001). Product innovation strategy and the performance of new technology ventures in China. Academy of Management Journal, 44(6), 1123–1134.

    Article  Google Scholar 

  • Liew, C. -B. A. (2008). Strategic integration of knowledge management and customer relationship management. Journal of Knowledge Management, 12(4), 131–155.

    Article  Google Scholar 

  • Mann, C., & Stewart, F. (2000). Internet communication and qualitative research: A handbook for researching online. London: Sage.

    Google Scholar 

  • Mason-Jones, R., & Towill, D. R. (1999). Using the information decoupling point to improve supply chain performance. International Journal of Logistics Management, 10(2), 13–26.

    Article  Google Scholar 

  • Massetti, B., & Zmud, R. W. (1996). Measuring the extent of EDI usage in complex organizations: Strategies and illustrative examples. MIS Quarterly, 20(3), 331–345.

    Article  Google Scholar 

  • McAlary, S. (1999). Three pitfalls in ERP implementation. Strategy and Leadership, 27(6), 49–51.

    Google Scholar 

  • McCloy, R. A., Campbell, J. B., & Cudeck, R. (1994). A confirmatory test of a model of performance determinants. Journal of Applied Psychology, 79(4), 493–505.

    Article  Google Scholar 

  • McKeen, J. D., Guimaraes, T., & Wetherbe, J. C. (1994). The relationship between user participation and user satisfaction: An investigation of four contingency factors. MIS Quarterly, 18(4), 427–451.

    Article  Google Scholar 

  • McKnight, D. H., Choudhury, V., & Kacmar, C. (2002). Developing and validating trust measures for e-commerce: An integrative typology. Information Systems Research, 13(3), 334–361.

    Article  Google Scholar 

  • McNally, R. C. (2007). An exploration of call centre agents’ CRM software use, customer orientation and job performance in the customer relationship maintenance phase. Journal of Financial Services Marketing, 12(2), 169–185.

    Article  Google Scholar 

  • Mendoza, L. E., Marius, A., Perez, M., & Griman, A. C. (2007). Critical success factors for a customer relationship management strategy. Information and Software Technology, 49(8), 913–945.

    Article  Google Scholar 

  • Meroño-Cerdán, A. L., Soto-Acosta, P., & López-Nicolás, C. (2008). How do collaborative technologies affect innovation in SMEs? International Journal of E-Collaboration, 4(4), 33–51.

    Google Scholar 

  • Meyer, M., & Kolbe, L. M. (2005). Integration of customer relationship management: Status quo and implications for research and practice. Journal of Strategic Marketing, 13, 175–198.

    Article  Google Scholar 

  • Morash, E. A., & Clinton, S. R. (1998). Supply chain integration: Customer value through collaborative closeness versus operational excellence. Journal of Marketing Theory and Practice, 6(4), 104–120.

    Google Scholar 

  • Motwani, J., Akbulut, A. Y., & Nidumolu, V. (2005). Successful implementation of ERP systems: A case study of an international automotive manufacturer. International Journal of Automotive Technology and Management, 5(4), 37–56.

    Article  Google Scholar 

  • Myers, S., & Marquis, D. G. (1969). Successful industrial innovations. Washington, DC: National Science Foundation.

    Google Scholar 

  • Ngai, E. W. T. (2005). Customer relationship management research (1992–2002): An academic literature review and classification. Marketing Intelligence and Planning, 23(6), 582–605.

    Article  Google Scholar 

  • Nguyen, T. H., Sherif, J. S., & Newby, M. (2007). Strategies for successful CRM implementation. Information Management and Computer Security, 15(2), 102–115.

    Article  Google Scholar 

  • Nieto, M. J., & Santamaria, L. (2007). The importance of diverse collaborative networks for the novelty of product innovation. Technovation, 27(6/7), 367–377.

    Article  Google Scholar 

  • Nunnally, J. C. (1978). Psychometric theory. New York: McGraw-Hill Book.

    Google Scholar 

  • Parker, H. (2000). Interfirm collaboration and the new product development process. Industrial Management and Data Systems, 100(6), 255–260.

    Article  Google Scholar 

  • Plakoyiannaki, E., & Saren, M. (2006). Time and the customer relationship management process: Conceptual and methodological insights. The Journal of Business and Industrial Marketing, 21(4), 218–230.

    Article  Google Scholar 

  • Pliskin, N., & Ben-Zion, R. (2005). The case of implementing a CRM system at indigo. Journal of Information Technology Case and Application Research, 7(4), 53–79.

    Google Scholar 

  • Ragatz, G. L., Handfield, R. B., & Scannell, T. V. (1997). Success factors for integrating suppliers into new product development. The Journal of Product Innovation Management, 14(3), 190–202.

    Article  Google Scholar 

  • Ramamurthy, K., Premkumar, G., & Crum, M. (1999). Organizational and inter-organizational determinants of the EDI diffusion: A causal model. Journal of Organizational Computing and Electronic Commerce, 9(4), 253–285.

    Article  Google Scholar 

  • Rangaswamy, A., & Lilien, G. L. (1997). Software tools for new product development. Journal of Marketing Research, 34(1), 177–184.

    Article  Google Scholar 

  • Reinartz, W. J., & Kumar, V. (2000). On the profitability of long-life customers in a noncontractual setting: An empirical investigation and implications for marketing. Journal of Marketing, 64(4), 17–35.

    Article  Google Scholar 

  • Richard, J., Thirkell, P., & Huff, S. (2007). The strategic value of CRM: A technology adoption perspective. Journal of Strategic Marketing, 15(5), 421–439.

    Article  Google Scholar 

  • Rogers, E. M. (1995). Diffusion of innovations (4th ed.). New York: The Free.

    Google Scholar 

  • Romano, N. C. (2002). Customer relationship management for the web-access challenged: Inaccessibility of fortune 250 business web sites. International Journal of Electronic Commerce, 7(2), 81–117.

    Google Scholar 

  • Saeed, K., Malhotra, M. K., & Grover, V. (2005). Examining the impact of inter-organizational systems on process efficiency and sourcing leverage in buyer–supplier dyads. Decision Sciences, 36(3), 365–396.

    Article  Google Scholar 

  • Segars, A. H. (1997). Assessing the unidimensionality of measurement: A paradigm and illustration within the context of information systems research. Omega: The International Journal of Management Science, 25(11), 107–121.

    Article  Google Scholar 

  • Segars, A. H., & Grover, V. (1993). Re-examining perceived ease of use and usefulness: A confirmatory factor analysis. MIS Quarterly, 17(4), 517–525.

    Article  Google Scholar 

  • Shah, J. R., & Murtaza, M. B. (2005). Effective customer relationship management through web services. The Journal of Computer Information Systems, 46(1), 98–109.

    Google Scholar 

  • Shahin, A., & Nikneshan, P. (2008). Integration of CRM and QFD: A novel model for enhancing customer participation in design and delivery. The TQM Journal, 20(1), 68–86.

    Article  Google Scholar 

  • Sharma, S. R. M., Durand, R. M., & Gur-Arie, O. (1981). Identification and analysis of moderator variables. Journal of Marketing Research, 18, 291–300.

    Article  Google Scholar 

  • Shin, I. (2006). Adoption of enterprise, application software and firm performance. Small Business Economics, 26, 241–256.

    Article  Google Scholar 

  • Stone, E. F., & Hollenbeck, J. R. (1989). Clarifying some controversial issues surrounding statistical procedures for detecting moderator variables: Empirical evidence and related matters. Journal of Applied Psychology, 74(2), 3–10.

    Article  Google Scholar 

  • Su, C. T., Chen, Y. H., & Sha, D. Y. (2006). Linking innovative product development with customer knowledge: A data-mining approach. Technovation, 26(7), 784–795.

    Article  Google Scholar 

  • Swift, R. S. (2001). Accelerating customer relationships using CRM and relationship technologies. Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Tarn, J. M., Yen, D. C., & Beaumont, M. (2002). Exploring the rationales for ERP and SCM integration. Industrial Management and Data Systems, 102(1), 26–34.

    Article  Google Scholar 

  • Taylor, S. A., & Hunter, G. L. (2002). The impact of loyalty with e-CRM software and e-services. International Journal of Service Industry Management, 13(5), 452–474.

    Article  Google Scholar 

  • Teng, K. L. L., Ong, S. G., & Ching, P. W. (2007). The use of customer relationship management (CRM) by manufacturing firms in different industries: A Malaysian survey. International Journal of Management, 24(2), 386–397.

    Google Scholar 

  • Teo, T. S. H., Devadoss, P., & Pan, S. L. (2006). Towards a holistic perspective of customer relationship management (CRM) implementation: A case study of the housing and development board. Decision Support Systems, 42(3), 1613–1627.

    Article  Google Scholar 

  • Tomas, J. -L. (2005). ERP et PGI: Sélection, déploiement et utilisation opérationnelle (4th ed.). Paris: Dunod.

    Google Scholar 

  • Truman, G. E. (2000). Integration in electronic exchange environments. Journal of Management Information Systems, 17(1), 209–244.

    Google Scholar 

  • Venkatraman, N. (1989). Strategic orientation of business enterprises: The construct, dimensionality, and measurement. Management Science, 35(8), 942–963.

    Article  Google Scholar 

  • Vilaseca-Requena, J., Torrent-Sellens, J., & Jimenez-Zarco, A. I. J. (2007). ICT use in marketing as innovation success factor: Enhancing cooperation in new product development processes. European Journal of Innovation Management, 10(2), 268–288.

    Article  Google Scholar 

  • Wagner, W., & Zubey, M. (2007). Customer relationship management: A people, process and technology approach. Boston: Thomson Course Technology.

    Google Scholar 

  • Wang, E. T. G., Tai, J. C. F., & Wei, H. L. (2006). A virtual integration theory of improved supply-chain performance. Journal of Management Information Systems, 23(2), 41–64.

    Article  Google Scholar 

  • Wu, S. -I., & Hung, M. (2008). A performance evaluation model of CRM on non-profit organisations. Total Quality Management and Business Excellence, 19(4), 321–342.

    Article  Google Scholar 

  • Wu, H. Y., Chiang, C. Y., Wu, Y. J., & Tu, H. -J. (2004). The influencing factors of commitment and business integration on supply chain management. Industrial Management and Data Systems, 104(4), 322–333.

    Article  Google Scholar 

  • Xu, Y., Yen, D. C., Lin, B., & Chou, D. C. (2002). Adopting customer relationship management technology. Industrial Management and Data Systems, 102(8/9), 442–452.

    Google Scholar 

  • Yang, J., & Yu, L. (2002). Electronic new product development—a conceptual framework. Industrial Management and Data Systems, 102(4), 218–225.

    Article  Google Scholar 

  • Yen, H. R., & Sheu, C. (2004). Aligning ERP implementation with competitive priorities of manufacturing firms: An exploratory study. International Journal of Production Economics, 92(3), 207–220.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Pierre Hadaya.

Additional information

Responsible editor: Nicholas C. Romano, Jr.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Hadaya, P., Cassivi, L. Collaborative e-product development and product innovation in a demand-driven network: the moderating role of eCRM. Electron Markets 19, 71–87 (2009). https://doi.org/10.1007/s12525-009-0008-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12525-009-0008-0

Keywords

JEL classification

Navigation