The role of product lean launch in customer relationships and performance in the high-tech manufacturing industry

Abstract

Purpose – Most new product research for the past two decades has focussed on new product development and product innovation. Only a few product launches have been discussed in specific fields. The purpose of this paper is to fill the literature gap regarding enhanced product launch performance by using the customer relationship. Design/methodology/approach – From the contract manufacturer’s perspective, the authors propose that the customer relationship and senior management involvement affects lean launch execution. The customer relationship includes both cooperativeness and behavior monitoring. Studies have suggested that a lean launch exerts a direct influence on new product performance and marketing performance. We used a questionnaire to collect data to test the postulated research model and hypotheses from project, account, and purchasing managers in the high-tech manufacturing industry. Findings – The results provided compelling evidence that the customer relationship exerts a positive effect on lean launch, which in turn exerts a positive effect on new product performance. Although lean launch execution affected marketing performance through new product performance, the direct effect on marketing performance was non-significant. Senior management involvement exerted an indirect influence on lean launch performance through cooperativeness. Originality/value – This paper suggests and empirically tests a model to explain how contract manufacturers manage brand-customer relationship through cooperativeness and behavior monitoring, leading to higher levels of lean launch execution toward new product performance.