Title: Effect of virtual community involvement on new product development: case studies on Indonesian online commerce companies

Authors: Suciwati Nursiam; Putu Wuri Handayani; Ida Ayu Kadek Trisnanty

Addresses: Faculty of Computer Science, Universitas Indonesia, Kampus UI Depok, 16424, Indonesia ' Faculty of Computer Science, Universitas Indonesia, Kampus UI Depok, 16424, Indonesia ' Faculty of Computer Science, Universitas Indonesia, Kampus UI Depok, 16424, Indonesia

Abstract: This research aims to examine the effect of virtual community involvement during a new product development, focusing on parameters speed to market, product quality, customer needs fulfilment, and product differentiation. This study also observes the utilisation and effectiveness of social media Facebook and Twitter by companies in assisting new product development activities. The methodologies used in this research are qualitative methods specifically interviews and online observations, quantitative method using PLS-SEM data analysis technique to analyse data of 210 respondents, and case study on Indonesian online commerce companies of Gantibaju.com and Thinkcookcook.com. The result shows that there is a positive influence on product quality, customer needs fulfilment, and product differentiation at Gantibaju.com and Thinkcookcook.com. There is also a positive influence on speed to market in Thinkcookcook.com, however this is not the case with Gantibaju.com. For Thinkcookcook.com, Facebook is the most effective social media for new product development activities, while Twitter is the most effective social media used by Gantibaju.com.

Keywords: e-commerce; electronic commerce; virtual communities; online communities; web based communities; new product development; NPD; social media; speed to market; product quality; product differentiation; customer fulfilment; customer needs; PLS-SEM; partial least squares; structural equation modelling; Indonesia.

DOI: 10.1504/IJBIS.2016.077835

International Journal of Business Information Systems, 2016 Vol.22 No.4, pp.397 - 421

Received: 29 Sep 2014
Accepted: 17 Dec 2014
Published online: 17 Jul 2016 *

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