The Effect of Stakeholders Participation in New Product Development on Organizational Performance

The importance of stakeholder’s participation has been recognized in new product development (NPD) literature, yet efforts to present an empirically model that examine Stakeholders Participation and its effect on firm performance are scarce. This paper aims to explore the effect of involvement of customers, suppliers and cross-functional teams in NPDas stakeholders’ participation on performance and to examine the mediating role of NPD performance. This study is descriptive which is conducted with investigation of total number of hardware manufacturers in information technology industry. Data are gathered by questionnaire and empirical analyses and were performed using SEM. The analytical results demonstrated that cross-functional teams and suppliers’ participation positively effect on organizational performance. Also, our study showed the confirmation of the mediating role of the new product development function in relation to stakeholder participation and overall company performance.