Abstract
The fast development of B2B digital platforms offers many suppliers opportunities to engage their customers in new product development projects on these platforms. However, customers are often reluctant to participate in these projects due to potential risks, such as leaking critical business information and opportunism. Digital platforms further increase these risks as customers may face more uncertainties due to a lack of physical contact on these platforms. Drawing on the transaction cost analysis, we examine how platform governance mechanisms (i.e., macroculture and collective sanctions) influence customer participation in supplier NPD on B2B digital platforms. We find that both macroculture and collective sanctions can potentially facilitate customer participation on B2B digital platforms but in different ways. Specifically, macroculture tends to influence customer participation directly, especially when customers have heterogeneous needs. In comparison, the impact of collective sanctions on customer participation is contingent on high platform accessibility and customer need heterogeneity.