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Article
Publication date: 20 April 2012

Molan Kim, Jeong Eun Park, Alan J. Dubinsky and Seoil Chaiy

Customer relationship management (CRM) is considered a means to create competitive advantage for a company, as well as influence organizational performance. Much research has…

10630

Abstract

Purpose

Customer relationship management (CRM) is considered a means to create competitive advantage for a company, as well as influence organizational performance. Much research has explored CRM users' point of view vis‐à‐vis successful CRM implementation, yet little concern has been shown regarding customers' viewpoints toward these same actions. This is surprising given that one of the beneficiaries of CRM is the customer. This paper aims to report the results of a study that explored the gap between actual bank CRM actions and customers' expectations of those actions in relation to CRM customers' intention to remain in the relationship.

Design/methodology/approach

This study explores the gap between actual bank CRM implementation and customers' expectations of those actions in relation to customer retention using a survey method. A research model is presented to illustrate the theoretical relationships of the research.

Findings

The findings indicate that an incompatibility exists between the interval of actual CRM implementation activities and customers' expectations of the interval and that this incompatibility has an adverse effect on customers' willingness to remain in the relationship. Additionally, customers and CRM personnel hold different perceptions regarding the frequency with which CRM implementation activities should be executed.

Practical implications

Implementing CRM service efforts should be compatible with customers' expectations. Therefore, companies should pay keen attention when selecting the optimal frequency of CRM implementation so that it meets customers' expectations. Also, firms may be having too frequent CRM contact with customers, thus creating inefficient use of CRM resources.

Originality/value

This paper explores selected variables that may influence CRM performance vis‐à‐vis its implementation. The research provides the unique perspective of the customer as a major factor to consider for successful CRM implementation.

Details

Journal of Services Marketing, vol. 26 no. 2
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 28 June 2011

Mamoun N. Akroush, Samer E. Dahiyat, Hesham S. Gharaibeh and Bayan N. Abu‐Lail

The purpose of this paper is to examine the generalizability of the customer relationship management (CRM) scale originally developed by Sin et al. as well as to investigate the…

5742

Abstract

Purpose

The purpose of this paper is to examine the generalizability of the customer relationship management (CRM) scale originally developed by Sin et al. as well as to investigate the strength of linkages between CRM implementation components and business performance in Jordan's financial service organizations (FSOs).

Design/methodology/approach

Using a quantitative methodology, data were collected through a survey that included FSOs that are operating in the Jordanian market. The original adopted CRM scale was administered to 12 banks and 18 insurance companies that were found to be implementing CRM. An overall number of 320 questionnaires were sent to these banks and insurance companies' top management members who were directly involved in CRM implementation and performance assessments. Exploratory and confirmatory factor analyses were used to assess the generalizability of the CRM scale developed by Sin et al. Structural path model analysis was also used to test the research hypotheses concerning the relationship between CRM implementation and business performance.

Findings

The results suggest that the CRM implementation scale originally developed by Sin et al. does generalize to a Jordanian FSOs context. The findings indicate that there is a positive and significant relationship between CRM implementation components and FSOs' business performance comprised of financial and marketing performances. CRM organization and technology‐based CRM are the strongest predictors of variations in FSOs' business performance.

Originality/value

This paper is the first systematic research project in Jordan that isdevoted to investigating the scale and components of CRM implementation in Jordan and in the Middle East.

Details

International Journal of Commerce and Management, vol. 21 no. 2
Type: Research Article
ISSN: 1056-9219

Keywords

Article
Publication date: 5 September 2023

Zhuo June Cheng, Yinghua Min, Feng Tian and Sean Xin Xu

The purpose of this paper is to investigate how customer relationship management (CRM) implementation affects internal capital allocation efficiency, the efficiency with which a…

Abstract

Purpose

The purpose of this paper is to investigate how customer relationship management (CRM) implementation affects internal capital allocation efficiency, the efficiency with which a firm allocates its capital across its business segments.

Design/methodology/approach

The authors use a statistical regression method to analyze a sample of 801 unique firms in the USA from COMPUSTAT and the Computer Intelligence database. This analysis examines the relation between CRM implementation and internal capital allocation efficiency and identifies the conditions under which firms benefit more from CRM implementation. They also use instrumental variables (IVs) to address endogenous concerns with a two-stage least squares (2SLS) model.

Findings

The authors find that CRM implementation is positively related to internal capital allocation efficiency. The results are robust to the 2SLS analysis with IVs. This positive relation is more pronounced for firms with effective internal control and for those operating in highly competitive markets.

Practical implications

The research implies that that CRM can have a significant cross-functional effect on corporate financing and budgeting. This also suggests that when chief marketing officers plan marketing initiatives and implement CRM, they should communicate to chief financial officers not only the direct effect but also the indirect strategic benefits of such initiatives to a firm.

Originality/value

The authors reveal a previously overlooked aspect of marketing accountability by suggesting marketing’s impact on internal capital markets. They also enrich the body of literature on CRM benefits by showing a cross-functional benefit from marketing to finance (or capital allocation).

Details

Journal of Business & Industrial Marketing, vol. 39 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 14 November 2008

Philip Shum, Liliana Bove and Seigyoung Auh

Although organizational change is inevitable with customer relationship management (CRM) implementation, very little is known about how this change affect employees, and how their…

14940

Abstract

Purpose

Although organizational change is inevitable with customer relationship management (CRM) implementation, very little is known about how this change affect employees, and how their actions in turn influence the success of CRM projects. The purpose of this study is to address this void in the current CRM literature.

Design/methodology/approach

Using an exploratory approach, 13 in‐depth interviews were conducted with bank managers and staff of three banks to provide preliminary support for the conceptual framework.

Findings

The three banks approached their CRM projects with very different results. Two banks achieved less success from their CRM implementation as a result of too little focus being placed on managing CRM‐induced change and people. Only one bank focused a large part of its CRM budget on change management and the organizational factors critical to the implementation. Results demonstrate a possible correlation between employees' commitment to the CRM initiative and the positive outcomes of a bank's performance.

Research limitations/implications

This paper lays down the foundation for more thorough studies on employees' affective commitment to change in the CRM context. Empirical research will be needed to verify the conceptual model presented.

Practical implications

The importance of identifying and securing employees' affective commitment to CRM‐induced change to ensure the successful roll out of a CRM implementation is highlighted.

Originality/value

Initial evidence is gained of the importance of employee commitment to CRM induced change for successful CRM implementation. A total of six organizational drivers are identified which assist in gaining employee commitment to CRM induced change.

Details

European Journal of Marketing, vol. 42 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 11 January 2016

Roya Rahimi and Ebru Gunlu

The purpose of this research is to empirically investigate the impact of organizational culture on implementing customer relationship management (CRM) in the hotel industry.

9561

Abstract

Purpose

The purpose of this research is to empirically investigate the impact of organizational culture on implementing customer relationship management (CRM) in the hotel industry.

Design/methodology/approach

The research is conducted with a quantitative approach and a questionnaire adapted from Denison Organizational Culture Survey, and the Mendoza CRM model is the research instrument. The questionnaire was administered among 346 managers of a chain hotel in the UK. Gathered data were subjected to correlation and multiple regression analyses.

Findings

The correlation analysis demonstrates that organizational culture factors of adaptability, consistency, staff involvement and mission have a positive significant impact on CRM implementations. The multiple regression analysis further showed that though CRM implementation is highly correlated with these four factors, its successful implementation is not dependent on all of them.

Research limitations/implications

The research is conducted in the frame of a case study where a UK chain hotel is selected; therefore, the findings cannot be generalized to a larger population. This research is conducted in the context of hotel industry and the result might be different for other industries. Due to the limitation in access to all employees, only managers were selected as the sample of the study and future studies with all staff may show different results.

Practical implications

Organizational culture readiness is one of the most important requirements in CRM implementation initiatives. The results of this study will benefit hotel managers in measuring their organizational culture and improve it toward better CRM outcomes.

Originality/value

Previous studies on organizational culture and CRM with qualitative approaches have tried to highlight the role of organizational culture on CRM implementation or some have attempted to identify the organizational culture factors with potential impact on CRM implementations. However, very few of these studies have empirically investigated the impacts of organizational culture on CRM implementation, and this is the first study that empirically investigates this impact in the context of the hotel industry.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 13 February 2007

Aihie Osarenkhoe and Az‐Eddine Bennani

Efforts made in extant literature to link the components of customer relationship management (CRM) strategy to its implementation are insufficient. This paper aims to provide…

20286

Abstract

Purpose

Efforts made in extant literature to link the components of customer relationship management (CRM) strategy to its implementation are insufficient. This paper aims to provide insights on the core components of CRM and the implementation of CRM strategy.

Design/methodology/approach

A case study of CRM implementation at a large Swedish firm was carried out using open‐ended, face‐to‐face and telephone interview methods to collect data from key informants at both strategic and operative levels. The empirical studies focused on technical and cognitive aspects necessary for successful implementation of a sustainable CRM strategy.

Findings

Results show that relationships are not only a tactical weapon, but represent a different, strategic approach to buyer‐seller exchange. Findings also show that implementing sustainable CRM strategy requires the endorsement by and commitment from top management, systematic cross‐functional communication, and mandatory customer loyalty training programmes for all employees.

Research limitations/implications

Attempts made in extant literature to define CRM have been varied. A theoretical model on which future empirical analysis should be based when conceptualizing CRM should consist of a business strategy, a business philosophy and a database application, thereby forming a tripod.

Practical implications

CRM is a strategic business and process issue, not merely a technology solution as most often conceived in practice. The CRM process is a continuous learning process where information about individual customer is transformed into a customer relationship.

Originality/value

A process‐oriented integrative framework that facilitate successful implementation of a sustainable CRM strategy. It links components of CRM strategy with the key dimension of its implementation. The depth of the anchorage of this paper in the body of literature is a contribution.

Details

Business Process Management Journal, vol. 13 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 12 July 2013

Christos Sarmaniotis, Costas Assimakopoulos and Eugenia Papaioannou

Valid measurement scales for predicting the adoption of hoteliers’ customer‐centric orientation are in short supply. The present research develops and validates a new scale for a…

4495

Abstract

Purpose

Valid measurement scales for predicting the adoption of hoteliers’ customer‐centric orientation are in short supply. The present research develops and validates a new scale for a specific variable, i.e. Management Attitudes Towards Customer‐Centric Orientation (MATCCO). Furthermore, this research attempts to identify some broad determinants for a successful CRM system implementation and propose a research model depicting possible relationships among MATCCO, broad determinants and profit.

Design/methodology/approach

A structured questionnaire has been developed in order to accomplish the research objectives. Data were collected from 86 Greek luxury hotels. Accepted methodology was used to construct the measure, factor analysis to determine the CRM key success factors (KSFs) and Pearson correlation, ANOVA and discriminant analysis to test the proposed model. Additionally, qualitative research was conducted in two Greek luxury hotels.

Findings

A reliable and valid measure of MATCCO was constructed. Four CRM KSFs were identified. The research model was verified and proposed confirming relationships among MATCCO, CRM KSFs and company profit. Cases analysis showed that effective customer communication strategy, IT infrastructure and suitable organizational strategy are the KSFs of CRM implementation provided that hoteliers are positive toward customer‐centric orientation.

Research limitations/implications

The results of this study are applicable to luxury hotels.

Practical implications

There is a necessity of checking the level of MATCCO before undertaking a CRM implementation project. Further, the results of this study highlight some crucial factors that influence successful CRM implementation in the hotel lodgings.

Originality/value

The main contribution of the paper is the construction of the multi‐item measure of hoteliers’ customer‐centric orientation.

Details

EuroMed Journal of Business, vol. 8 no. 2
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 1 December 2002

Ian Corner and Matthew Hinton

Addresses variables in the implementation of software applications for aspects of customer relationship management (CRM) systems in medium‐sized organisations. The objective is to…

15375

Abstract

Addresses variables in the implementation of software applications for aspects of customer relationship management (CRM) systems in medium‐sized organisations. The objective is to identify those variables that present the greatest risks to effective and successful implementation in the light of the operating relationships between the main “actors” in multi‐channel CRM implementation projects. Bases theoretical development on two central themes. The first theme is that any implementation has risks that need to be managed and the second is that the dynamics of the relationships of the main actors are more complex where a system is acquired from external developers than with an internally developed system. Explores these assumptions using qualitative linear case studies, where success or failure has not been established at the start. Derives a model which represents a typical relationship dynamic for a CRM implementation. By establishing the nature of the risks involved within the context of a monitored relationship dynamic offers a framework for guidance in the implementation process.

Details

Qualitative Market Research: An International Journal, vol. 5 no. 4
Type: Research Article
ISSN: 1352-2752

Keywords

Article
Publication date: 8 January 2018

Sally Crowe and Frank Deane

The purpose of this paper is to investigate the relationships between clinicians’ and managers’ risk aversion and a range of variables related to the implementation of the…

1940

Abstract

Purpose

The purpose of this paper is to investigate the relationships between clinicians’ and managers’ risk aversion and a range of variables related to the implementation of the Collaborative Recovery Model (CRM). Positive risk taking is an integral component of the recovery process. Clinicians’ risk aversion has the potential to negatively impact on their implementation of recovery-oriented practices. The CRM provides an evidence-based framework to assist consumers to participate in the recovery process. However, there is a need for research to clarify the factors related to recovery that have impact on managers’ and clinicians’ risk aversion, and ultimately on implementation of recovery practices.

Design/methodology/approach

A cross-sectional survey assessed clinicians’ (n=174) and managers’ (n=48) risk aversion and their self-reported learning experiences, commitment to using CRM, goal setting attitudes and CRM implementation behaviour.

Findings

Clinicians who reported more risk aversion were significantly more likely to report positive attitudes towards goal setting. Stepwise regression revealed that training experiences, goal setting attitudes and commitment to CRM significantly predicted an increase in CRM implementation. Over and above this, risk aversion predicted a small but significant increase in the self-reported use of CRM. Managers experienced significantly less risk aversion than clinicians, with a negative relationship between risk aversion and commitment to CRM principles.

Originality/value

This paper suggests that clinicians’ risk aversion impacts upon their implementation of the CRM, with managers less risk averse than clinicians.

Details

The Journal of Mental Health Training, Education and Practice, vol. 13 no. 1
Type: Research Article
ISSN: 1755-6228

Keywords

Article
Publication date: 1 November 2006

David Finnegan and Leslie Willcocks

This exploratory case study research aims to apply a processual analysis to the implementation of a customer relationship management (CRM) system from a knowledge management…

3544

Abstract

Purpose

This exploratory case study research aims to apply a processual analysis to the implementation of a customer relationship management (CRM) system from a knowledge management perspective to a contemporary (1999‐2004) situation within a UK city council. The paper seeks to place a specific focus on areas neglected in previous CRM studies – sub‐cultures, psychological contracts, how tacit knowledge is surfaced and transferred, and with what effects on implementation.

Design/methodology/approach

The paper investigates how the system stakeholders and the information system (IS) itself evolved through encountering barriers, sharing knowledge, finding new uses, inventing work‐arounds.

Findings

A rich picture emerges of sub‐cultural silos of knowledge linked with psychological contracts and power‐based relationships influencing and inhibiting adoption and acceptance of the CRM system.

Originality/value

This case study research provides useful information on the implementation of a CRM system from a knowledge management perspective with a specific focus on sub‐cultures, psychological contracts, how tacit knowledge is surfaced and transferred, and with what effects on implementation, which are areas neglected in previous CRM studies.

Details

Journal of Enterprise Information Management, vol. 19 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

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