Evaluating the relationship of Customer and Supplier Involvement relating to Product characteristics on New Product Development by using Structural Equation Modeling

In the present era the changes in needs of customers are increasing along with the tremendous business competition in the prevailing market scenario. Therefore the expansion of economic progress as reflected by the manufacturing sector has focused on the development of new products. The basic purpose of this study is to determine the association between product characteristics, supplier, customer involvement, and the development of new products in the furniture market of Punjab Pakistan. For this study, the data of 180 respondents is collected through a survey questionnaire by using convenience sampling. The gathered data is examined by the structural equational modeling (SEM) through partial least square (PLS). Findings of the study indicate that product characteristics such as product differentiation and modularity have a significant relationship with supplier and customer involvement whereas findings concluded an insignificant relationship between product innovativeness with supplier involvement and product variety with customer involvement. Furthermore, results declared a significant relationship between customer and supplier involvement with new product development. This study will assist the manufacturer of the new product development to provide better marketing services.