NEW PRODUCT DEVELOPMENT PERFORMANCE WITH CUSTOMER AND SUPPLIER PARTICIPATION – ABSORPTIVE CAPACITY AND DESORPTIVE CAPACITY PERSPECTIVES

Research has shown that the failure rate in new product development (NPD) is high. The objective of this study is to conceptualize a comprehensive model to investigate the effects of key customer and supplier participation at each stage of the NPD process on NPD performance in a focal firm. Absorptive capacity (ACAP) is predicted to moderate the relationship between key customer participation and NPD performance at a different stage of the NPD process. Desorptive capacity (DCAP) is predicted to moderate the relationship between the key supplier participation and NPD performance at a different stage of the NPD process in a focal firm.