Fuzzy Front-End Vertical External Involvement, Corporate Social Responsibility and Firms’ New Product Development Performance in the VUCA Age: From an Organizational Learning Perspective

Abstract

Fuzzy front-end (FFE) innovation is the important initial phase of manufacturing companies’ new product development (NPD) process, which can be a factor that determines manufacturers’ NPD performance and sustainable growth. This study seeks to investigate the role of FFE vertical external involvement (FFE customer involvement and FFE supplier involvement) in advancing firms’ corporate social responsibility (CSR) and NPD performance in the COVID-19-influenced age of volatility, uncertainty, complexity and ambiguity (VUCA). This study adopts an organizational learning (OL) perspective as its theoretical foundation in constructing a comprehensive framework by developing a series of hypotheses. In addition, we test the mediating effect of CSR on the relationship between FFE vertical external involvement and firm NPD performance. We use the structural equation modeling method to examine our hypotheses empirically based on data collected from 548 Chinese manufacturing companies. The findings illustrate that FFE customer involvement and FFE supplier involvement are vital drivers of a firm’s CSR engagement. Furthermore, we find that FFE supplier involvement plays a more significant role than FFE customer involvement in contributing to NPD performance. Finally, we find that a firm’s CSR engagement positively mediates the relationship between FFE vertical external involvement and NPD performance.