Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Explore the Dynamics of Customer Relationship Management on Organizational Performance


Affiliations
1 College of Business, Universiti Utara, Malaysia
     

   Subscribe/Renew Journal


Performance is at the heart of organizations and it is crucial to their continuing to function in the competitive market. Several factors play an important role in optimizing organizational performance, including CRM. The aim of the current paper is to conceptually elucidate the complex yet important relationship between CRM and performance. Following a review of the literature, the current study proposes a conceptual model that depicts the relationships among study variables and generates propositions. The literature indicates that CRM strengthens the relationship with organizational performance. With CRM, an organization should be more efficient and effective in satisfying customers, offering unique products and services and consequently enjoying better performance. However the exact nature of these relationships needs to be investigated further.

Keywords

Customer Relationship Management (CRM), Performance Organizational Performance (OP).
User
Subscription Login to verify subscription
Notifications
Font Size

  • A. Garrido-Moreno, and A. Padilla-Melendez, “Analysing the impact of knowledge management on CRM success: The mediating effects of organizational factors,” International Journal of Information Management, vol. 31, no. 5, pp. 437-444, October 2011.
  • A. J. Campbell, “Creating customer knowledge competence: Managing customer relationship management programs strategically,” Industrial Marketing Management, vol. 32, no. 5, pp. 375-383, July 2003.
  • A. Josiassen, A. G. Assaf, and L. K. Cvelbar, “CRM and the bottom line: Do all CRM dimensions affect firm performance?” International Journal of Hospitality Management, vol. 36, pp. 130-136, January 2014.
  • A. Mehta, and J. Tajeddini, “Proposed integrated CRM magic quadrant and readiness matrix model for Indian SMEs,” Middle East Journal of Management, vol. 3, no. 3, p. 179, 2016.
  • A. Mohammed, and B. Rashid, “Customer Relationship Management (CRM) in hotel industry: A framework proposal on the relationship among CRM dimensions, marketing capabilities, and hotel performance,” International Review of Management and Marketing, vol. 2, no. 4, p. 220, 2012.
  • A. Mozaheb, S. M. A. Alamolhodaei, and M. F. Ardakani, “Effect of Customer Relationship Management (CRM) on performance of Small-Medium Sized Enterprises (SMEs) using Structural Equations Model (SEM),” International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5, no. 2, June, 2015.
  • A. R. Zablah, D. N. Bellenger, and W. J. Johnston, “An evaluation of divergent perspectives on customer relationship management: Towards a common understanding of an emerging phenomenon,” Industrial Marketing Management, vol. 33, no. 6, pp. 475-489, August 2004.
  • A. Sen, and A. P. Sinha, “IT alignment strategies for customer relationship management,” Decision Support Systems, vol. 51, no. 3, pp. 609-619, June 2011.
  • A. S. Lo, L. D. Stalcup, and A. Lee, “Customer relationship management for hotels in Hong Kong,” International Journal of Contemporary Hospitality Management, vol. 22, no. 2, pp. 139-159, March 2010.
  • C. A. Vogt, “Customer relationship management in tourism: Management needs and research applications,” Journal of Travel Research, vol. 50, no. 4, pp. 356-364, June 2010.
  • C. Homburg, J. P. Workman, and O. Jensen, “Fundamental changes in marketing organization: The movement toward a customer-focused organizational structure,” Journal of the Academy of Marketing Science, vol. 28, no. 4, pp. 459-478, October 2000.
  • C. Homburg, M. Grozdanovic, and M. Klarmann, “Responsiveness to customers and competitors: The role of affective and cognitive organizational systems,” Journal of Marketing, vol. 71, no. 3, pp. 18-38, July 2007.
  • C. Sarmaniotis, C. Assimakopoulos, and E. Papaioannou, “Successful implementation of CRM in luxury hotels: Determinants and measurements,” EuroMed Journal of Business, vol. 8, no. 2, pp. 134-153, July 2013.
  • D. Boyle, “Open SCADA using standard software components,” IEE Seminar on Developments in Control in the Water Industry, 2004.
  • D. Peppers, M. Rogers, and B. Dorf, “Is your company ready for one-to-one marketing,” Harvard Business Review, vol. 77, no. 1, pp. 151-160, 1999.
  • D. S. Johnson, B. H. Clark, and G. Barczak, “Customer relationship management processes: How faithful are business-to-business firms to customer profitability?” Industrial Marketing Management, vol. 41, no. 7, pp. 1094-1105, October 2012.
  • D. Zahay, and A. Griffin, “Customer learning processes, strategy selection, and performance in business-to-business service firms,” Decision Sciences, vol. 35, no. 2, pp. 169-203, May 2004.
  • E. Fernandez Castelao, M. Boos, C. Ringer, C. Eich, and S. G. Russo, “Effect of CRM team leader training on team performance and leadership behaviour in simulated cardiac arrest scenarios: A prospective, randomized, controlled study,” BMC Medical Education,” vol. 15, no. 1, July 2015.
  • E. Ko, S. H. Kim, M. Kim, and J. Y. Woo, “Organizational characteristics and the CRM adoption process,” Journal of Business Research, vol. 61, no. 1, pp. 65-74, January 2008.
  • E. Plakoyiannaki and N. Tzokas, “Customer relationship management: A capabilities portfolio perspective,” Journal of Database Marketing & Customer Strategy Management, vol. 9, no. 3, pp. 228-237, March 2002.
  • F. Hong-kit Yim, R. E. Anderson, and S. Swaminathan, “Customer relationship management: Its dimensions and effect on customer outcomes,” Journal of Personal Selling & Sales Management, vol. 24, no. 4, pp. 263-278, 2004.
  • F. Khodakarami and Y. E. Chan, “Exploring the role of Customer Relationship Management (CRM) systems in customer knowledge creation,” Information & Management, vol. 51, no. 1, pp. 27-42, January 2014.
  • G. Gartner, “CRM success is in strategy and implementation, not in software,” 2003. Available http://www.gartner.com.
  • G. S. Day, “Managing market relationships,” Journal of the Academy of Marketing Science, vol. 28, no. 1, pp. 24-30, January 2000.
  • H. Alryalat, and S. Al Hawari, “Towards customer knowledge relationship management: Integrating knowledge management and customer relationship management process,” Journal of Information & Knowledge Management, vol. 07, no. 03, pp. 145-157, September 2008.
  • H. Ernst, W. D. Hoyer, M. Krafft, and K. Krieger, “Customer relationship management and company performance- The mediating role of new product performance,” Journal of the Academy of Marketing Science, vol. 39, no. 2, pp. 290-306, April 2010.
  • H. Sadek, A. Youssef, A. Ghoneim, and P. Tantawy, “Measuring the effect of Customer Relationship Management (CRM) components on the non-financial performance of commercial banks,” Egypt Case, 2012.
  • H. Soch, and H. S. Sandhu, “Does customer relationship management activity affect firm performance?” Global Business Review, vol. 9, no. 2, pp. 189-206, August 2008.
  • J. Abbott, M. Stone, and F. Buttle, “Integrating customer data into customer relationship management strategy: An empirical study,” Journal of Database Marketing & Customer Strategy Management, vol. 8, no. 4, pp. 289-300, July 2001.
  • J. M. Pennings, and R. M. Steers, “Organizational effectiveness: A behavioural view,” Administrative Science Quarterly, vol. 22, no. 3, p. 538, September 1977.
  • J. Peppard, “Customer Relationship Management (CRM) in financial services,” European Management Journal, vol. 18, no. 3, pp. 312-327, June 2000.
  • J. Shi, and L. Yip, “Driving innovation and improving employee capability: The effects of customer knowledge sharing on CRM,” 2007.
  • J. U. Becker, G. Greve, and S. Albers, “The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention,” International Journal of Research in Marketing, vol. 26, no. 3, pp. 207-215, September 2009.
  • J. Vella and A. Caruana, “Encouraging CRM systems usage: A study among bank managers,” Management Research Review, vol. 35, no. 2, pp. 121-133, January 2012.
  • K. B. Hendricks, V. R. Singhal, and J. K. Stratman, “The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations,” Journal of Operations Management, vol. 25, no. 1, pp. 65-82, January 2007.
  • L. E. Mendoza, A. Marius, M. Pérez, and A. C. Grimán, “Critical success factors for a customer relationship management strategy,” Information and Software Technology, vol. 49, no. 8, pp. 913-945, August 2007.
  • L. Ryals and S. Knox, “Cross-functional issues in the implementation of relationship marketing through customer relationship management,” European Management Journal, vol. 19, no. 5, pp. 534-542, October 2001.
  • L. Y. M. Sin, A. C. B. Tse, and F. H. K. Yim, “CRM: Conceptualization and scale development,” European Journal of Marketing, vol. 39, no. 11/12, pp. 1264-1290, November 2005.
  • M. El. Kordy, “The impact of CRM capability dimensions on organizational performance,” European Journal of Business and Social Sciences, vol. 2 no. 10, pp. 128-146. 2014.
  • M. Garcia-Murillo, and H. Annabi, “Customer knowledge management,” Journal of the Operational Research Society, vol. 53, no. 8, pp. 875-884, July 2002.
  • M. Kim, J. Eun Park, A. J. Dubinsky, and S. Chaiy, “Frequency of CRM implementation activities: A customer-centric view,” Journal of Services Marketing, vol. 26, no. 2, pp. 83-93, April 2012.
  • M. N. Akroush, S. E. Dahiyat, H. S. Gharaibeh, and B. N. AbuLail, “Customer relationship management implementation,” International Journal of Commerce and Management, vol. 21, no. 2, pp. 158-190, June 2011.
  • M. T. Hannan, J. H. Freeman, and J. W. Meyer, “Specification of models for organizational effectiveness,” American Sociological Review, vol. 41, no. 1, p. 136, February 1976.
  • M. Xu, and J. Walton, “Gaining customer knowledge through analytical CRM,” Industrial Management & Data Systems, vol. 105, no. 7, pp. 955-971, September 2005.
  • N. Venkatraman and V. Ramanujam, “Measurement of business performance in strategy research: A comparison of approaches,” Academy of Management Review, vol. 11, no. 4, pp. 801-814, October 1986.
  • P. Goodman, and J. Pennings, “New perspectives on organizational effectiveness,” San Francisco: Jossey-Bass, 1977.
  • P. Greenberg, “CRM at the speed of light: Capturing and keeping customers in Internet real time,” Elsevier. 2001.
  • P. Kapooria, “Customer Relationship Management: Key to customer sovereignty,” Idea Publishing, 2017.
  • P. Kotler, G. Armstrong, J. Saunders, and V. Wong, “Principles of Marketing, 2nd edition 2011 Principles of Marketing, 2nd edition. Hemel Hempstead: Prentice-Hall 1998. 1042 pp., ISBN: 0132 622548 £32.99,” Corporate Communications: An International Journal, vol. 6, no. 3, pp. 164-165, Sep. 2001.
  • P. Mechinda, and P. Patterson, “The impact of service climate and service provider personality on employees’ customer-oriented behaviour in a high-contact setting,” Journal of Services Marketing, vol. 25, no. 2, pp. 101-113, 2011.
  • R. Agnihotri, K. J. Trainor, O. S. Itani, and M. Rodriguez, “Examining the role of sales-based CRM technology and social media use on post-sale service behaviours in India,” Journal of Business Research, vol. 81, pp. 144-154, December 2017.
  • R. Bose, and V. Sugumaran, “Application of knowledge management technology in customer relationship management,” Knowledge and Process Management, vol. 10, no. 1, pp. 3-17, January 2003.
  • R. Iriana, F. Buttle, and L. Ang, “Does organisational culture influence CRM’s financial outcomes,” Journal of Marketing Management, vol. 29, no. 3-4, pp. 467-493, 2013.
  • R. McNally, “An exploration of call center agents’ CRM software use, customer orientation and job performance in the customer relationship maintenance phase,” Journal of Financial Services Marketing, vol. 12, no. 2, pp. 169-184, 2007.
  • R. Srinivasan and C. Moorman, “Strategic firm commitments and rewards for customer relationship management in online retailing,” Journal of Marketing, vol. 69, no. 4, pp. 193-200, October 2005.
  • R. Swift, “How leading companies achieve profitability through accelerating customer relationships,” Information Age Economy, pp. 35-42, 2001.
  • S. Butler, “Customer relationships,” Journal of Business Strategy, vol. 21, no. 2, pp. 13-14, February 2000.
  • S. Chelliah, M. Sulaiman, and Y. Mohd. Yusoff, “Internationalization and performance: Small and medium enterprises (SMEs) in Malaysia,” International Journal of Business and Management, vol. 5, no. 6, May 2010.
  • S. Dhliwayo, and P. Madhovi, “The relationship between Customer Relationship Management (CRM) and performance in the hotel industry,” 2017.
  • S. E. Seashore and E. Yuchtman, “Factorial analysis of organizational performance,” Administrative Science Quarterly, vol. 12, no. 3, p. 377, December 1967.
  • S. I. Salaheldin, “Critical success factors for TQM implementation and their impact on performance of SMEs,” International Journal of Productivity and Performance Management, vol. 58, no. 3, pp. 215-237, March 2009.
  • S. Mokhtar, “The consequences of qualitative overstretch on employee intention to quit in Malaysia CRM call centres,” Journal of Human Resources, vol. 2, no. 2, pp. 55-70, 2014.
  • S. Orenga-Rogla, and R. Chalmeta, “Social customer relationship management: Taking advantage of Web 2.0 and big data technologies,” Springer Plus, vol. 5, no. 1, August 2016.
  • S. Vandermerwe, “Achieving deep customer focus,” IEEE Engineering Management Review, vol. 32, no. 3, pp. 62-62, 2004.
  • T. Coltman, “Can superior CRM capabilities improve performance in banking,” Journal of Financial Services Marketing, vol. 12, no. 2, pp. 102-114, October 2007.
  • T. Connolly, E. J. Conlon, and S. J. Deutsch, “Organizational effectiveness: A multiple-constituency approach,” Academy of Management Review, vol. 5, no. 2, pp. 211-218, April 1980.
  • V. Goel, A. Singh, and S. Shrivastava, “CRM: A winning approach for tourism sector,” International Journal of Engineering and Management Research, vol. 5, no. 2, pp. 321-325, 2015.
  • W. Chang, J. E. Park, and S. Chaiy, “How does CRM technology transform into organizational performance? A mediating role of marketing capability,” Journal of Business Research, vol. 63, no. 8, pp. 849-855, August 2010.
  • W. K. Oh, H. Oh, B. Y. Kim, B. S. Kim, and J. S. Ahn, “CRM-51006, A new phospholipase C (PLC) Inhibitor, produced by unidentified fungal strain MT51005,” The Journal of Antibiotics, vol. 57, no. 12, pp. 808-811, 2004.
  • W. Reinartz, M. Krafft, and W. D. Hoyer, “The customer relationship management process: Its measurement and impact on performance,” Journal of Marketing Research, vol. 41, no. 3, pp. 293-305, August 2004.

Abstract Views: 279

PDF Views: 0




  • Explore the Dynamics of Customer Relationship Management on Organizational Performance

Abstract Views: 279  |  PDF Views: 0

Authors

Nagwan AlQershi
College of Business, Universiti Utara, Malaysia
Zakaria Bin Abas
College of Business, Universiti Utara, Malaysia
Sany Sanuri Mohd Mokhtar
College of Business, Universiti Utara, Malaysia

Abstract


Performance is at the heart of organizations and it is crucial to their continuing to function in the competitive market. Several factors play an important role in optimizing organizational performance, including CRM. The aim of the current paper is to conceptually elucidate the complex yet important relationship between CRM and performance. Following a review of the literature, the current study proposes a conceptual model that depicts the relationships among study variables and generates propositions. The literature indicates that CRM strengthens the relationship with organizational performance. With CRM, an organization should be more efficient and effective in satisfying customers, offering unique products and services and consequently enjoying better performance. However the exact nature of these relationships needs to be investigated further.

Keywords


Customer Relationship Management (CRM), Performance Organizational Performance (OP).

References