Modeling the Impact of Customer Knowledge on New Product Development and Performance-System Dynamics Approach



Knowledge is an important part of any organization’s asset and the most important sources of knowledge is related to customers. Hence, companies use knowledge management in order to increase their competitive advantage, and in particular try to benefit from the customer knowledge as the major factor in the organization success. This research aims to analyse the effect of customer knowledge on organizational performance through new product development in IT industry using System Dynamics approach. For this purpose, initially, the literature was reviewed and, based on interviews with experts and analyzing the interviews using grounded theory the model variables were identified, relationships were determined, and the dynamical modeling of the the causal diagram was drawn. The results of this study provide a dynamic model showing that knowledge and customer knowledge affect the product development, financial performance, customer numbers, idea numbers, customer loyalty, the time from idea to launch the product, and internal processes. Besides, it was found that to increase the impact of cstomer knowledge on the company performance, knowledge maturity is essential. This research can be useful both in terms of the research approach used and the results for different fields of engineering.