How to improve new product performance through customer relationship management and product development management : evidence from China

Purpose: This paper aims to investigate how to improve new product performance in turbulent circumstances of emerging economies. Design/methodology/approach: This paper used regression analysis to examine the performance impact of customer relationship management (CRM) and product development management (PDM) concentration strategy in new product development (NPD). A detailed contingent analysis of the market and institutional environments in emerging economies is also conducted based on a survey of 114 Chinese high-tech manufacturers. Findings: The research findings show that PDM has a stronger positive effect on new product performance than CRM in emerging economies and that the contingent effects of the market and institutional environment vary. More specifically, technological turbulence and enforcement inefficiency can positively moderate the relationship between CRM and new product performance, whereas the moderating effect of market turbulence on CRM is negative. Meanwhile, enforcement inefficiency negatively moderates the effect of PDM on new product performance, while the moderating effect of market turbulence on PDM is positive. Research limitations/implications: This paper is limited to a survey of high-tech manufacturing enterprises in China. Further research should continues to explore and document the strategic issue about NPD in emerging economies by longitudinal study. Originality/value: This paper contributed to theoretical and practical initiatives on the strategic issue of NPD and provided firms a further understanding of how to select the right NPD strategy in emerging economies to improve new product performance.