Examining green new product development through the demand-based view: Customer participation as a mediator
DOI:
https://doi.org/10.5585/2025.28321Keywords:
Green product, GNPD, demand-based view, market demand, customer demand, competitive pressure, customer participation, sustainable developmentAbstract
Objective of the Study: This study aims to examine the key drivers of effective green new product development (GNPD) performance. Specifically, it explores the relationships between customer demand, competitive pressure, customer participation, and GNPD performance through the theoretical lens of the demand-based view. The study seeks to demonstrate how demand-based view influence green GNPD, with a particular focus on the mediating role of customer participation.
Methodology: A quantitative research approach was employed, utilizing survey data collected from 81 Malaysian electrical and electronics (E&E) manufacturing firms. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed relationships among customer demand, competitive pressure, customer participation, and GNPD performance.
Originality: This study contributes to the literature by addressing a theoretical gap in the demand-based view, which has been underutilised in explaining green product innovation. By integrating customer demand, competitive pressure and customer participation into the GNPD framework, this study provides new insights into the antecedents of successful green innovation. The findings have academic relevance by extending the application of the demand-based view to sustainability-driven product development.
Main Results: The results indicate that competitive pressure positively influences customer participation in GNPD, which in turn mediates the relationship between competitive pressure and GNPD performance. However, no significant relationship was found between customer demand and customer participation. These findings underscore the importance of competitive dynamics in driving customer engagement and sustainability initiatives, especially in emerging markets.
Theoretical Contributions: This study use the demand-based view as the underpinning and positioning customer participation as a crucial mechanism through which customer and competitive pressures translate into GNPD success.
Managerial Contributions: For managers, the study highlights the necessity of actively engaging and integrating customers throughout the GNPD process to meet market demand for sustainability. By understanding the role of competitive pressure in fostering customer participation, businesses can enhance their green innovation strategies.
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Ministry of Higher Education, Malaysia,Ministry of Higher Education, Malaysia
Grant numbers FRGS/1/2019/SS03/UMP/02/2 -
Universiti Malaysia Pahang
Grant numbers SPU240101
