If You Want Help, You'd Better Be Green! Investigating the Effects of Sustainability Perceptions on Customer Co‐Creation in New Product Development

ABSTRACT Academic Summary This research examines whether and how a firm's sustainable image increases customer co‐creation in new product development (NPD). Across four studies, two scenario‐based experiments (Study 1a: n = 184; Study 2a: n = 285) and two behavior‐based idea contests (Study 1b: n = 197; Study 2b: n = 396), this article evaluates whether a sustainable image and sustainability‐focused communications raise co‐creation by shaping customers' environmental and health perceptions. Using partial least squares structural equation modeling, Studies 1a–1b show that firms perceived as sustainable elicit higher co‐creation intention (Study 1a) and behavior (Study 1b) than firms without a sustainable image. These effects are fully mediated by perceived environmental and health benefits. Studies 2a–2b demonstrate that communications emphasizing environmental or health contributions increase co‐creation by raising the corresponding perceived benefits. The effects are contingent on customers' regulatory focus: environmental benefits are more influential for promotion‐focused customers, whereas health benefits are more influential for prevention‐focused customers. The findings contribute to the understanding of co‐creation by identifying sustainability‐related benefit perceptions as psychological drivers, detailing communication levers that activate them, and establishing regulatory focus as a boundary condition in sustainability‐driven co‐creation. Managerial Summary To effectively encourage customers to engage in innovation activities, companies should communicate their sustainability efforts in a visible manner. Across four studies, customers were more willing and more likely to take part in idea generation, evaluation, and refinement when they perceived the company as sustainable. This is because people believe their effort will produce products that are better for the environment and for their own health. Companies can unlock this motivation with precise messaging: (1) Environmental messages (e.g., CO 2 reduction, resource savings) raise perceived environmental benefits from co‐creating and increase participation. (2) Health messages (e.g., non‐harmful materials, wellbeing) raise perceived health benefits and increase participation. Furthermore, companies should match the message to the audience. Customers who seek progress and positive change react especially well to environmental‐benefit messaging, while customers who prioritize safety and risk‐avoidance react especially well to health‐benefit messaging. In conclusion, companies should audit whether customers recognize their sustainable practices, communicate specific environmental or health contributions rather than vague claims, and segment outreach by motivational profile so that the right customers receive the right message at the right time. The result is more and better customer co‐creation during NPD, achieved by aligning sustainability signals with what different customers value.