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Article
Publication date: 24 October 2023

Todd Morgan, Wesley Friske, Marko Kohtamäki and Paul Mills

This paper aims to examine how customer participation in new service development (NSD) and customer relationship management (CRM) technology can improve the NSD performance of…

Abstract

Purpose

This paper aims to examine how customer participation in new service development (NSD) and customer relationship management (CRM) technology can improve the NSD performance of manufacturing firms. Additionally, the paper examines CRM technology usage to understand how it impacts new service performance both individually and jointly with customer participation in NSD.

Design/methodology/approach

This study is a survey of 216 manufacturing managers who are overseeing the development of new services at their organizations. For the analysis, structural equation modeling is used with Amos 22.0. Measures of all latent variables in the analysis pass the traditional tests for reliability, convergent validity and discriminant validity. Furthermore, the results of a common latent factor test for common method variance and Harman’s one-factor test indicate that common method bias is not a source of endogeneity in the model.

Findings

Customer participation has a positive effect on NSD performance. CRM technology usage also has a positive effect on NSD performance. The effect of customer participation on NSD performance is enhanced by CRM technology. The results of a post hoc analysis suggest that the usage of CRM technology has the most benefit for managing the technical aspects of customer participation.

Research limitations/implications

This study has methodological limitations that may impact the generalizability of results. For instance, it is based on cross-sectional self-reported survey data, which is more subjective than longitudinal secondary data. Survey research lacks the depth and nuance of qualitative research designs, which are commonly employed to study NSD. In addition, this study focuses on large US manufacturing firms. The authors do not include small firms or international organizations in the sample. Despite these limitations, they believe the findings can provide significant contributions to the NSD literature.

Practical implications

Although prior research has shown that customer participation and CRM technology can individually influence new product development (NPD) performance, the results indicate they are equally effective factors in the development of new services. Furthermore, the authors show that customer participation can be enhanced via the use of CRM technologies. The interaction is more pronounced within the technical aspects of NSD.

Originality/value

This study contributes to the NSD literature, and it also has implications for managers leading NSD efforts in traditional tangible-product industries. The findings provide additional evidence that customer participation is an effective NSD strategy for manufacturing firms (Morgan et al., 2019). Furthermore, CRM technology is integral to NSD performance. CRM technology not only has a direct effect on NSD performance, but the interaction term of customer participation by CRM technology also has a positive effect on NSD performance.

Details

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

Keywords

Article
Publication date: 19 October 2015

Nedra Bahri-Ammari and Khaldoon Nusair

This study aims to show the contribution of the determinants of customer relationship management (CRM), namely, customer-centric organizational culture and customer-centric…

1588

Abstract

Purpose

This study aims to show the contribution of the determinants of customer relationship management (CRM), namely, customer-centric organizational culture and customer-centric management system, in explaining CRM performance. The moderating role of employee support has also been examined.

Design/methodology/approach

A questionnaire was administered to 406 CRM users in 15 four- and five-star hotels in Tunisia. Data were analyzed using structural equation modeling.

Findings

The results show that a consumer-centric managerial system positively affects CRM technology. Managerial system contributes to have an efficient CRM technology implemented that provides sales force with customer information, competitor information, leads for cross-sell/up-sell opportunities, tracks product availability and measures customer loyalty. These dimensions are negatively affected by a consumer-centric organizational culture. CRM technology once implemented with an adapted consumer-centric vision will enhance the CRM performance. Moreover, the use of CRM technology by employees leads to higher performance. CRM performance can improve when different CRM components are used and supported by employee. Exchange of relevant information that provides technology can improve in regaining lost customers, in acquiring customers and in improving the total return per customer and reducing customer migration.

Practical implications

The findings help managers to consider adopting a customer-oriented CRM strategy that considers all the variables that may affect the performance of this technology (initiation, maintenance and retention). Companies will be able to reconsider some notions related to CRM strategies: restructuring the human factor, disseminating information, changing hotel culture and training of users.

Originality/value

This study is the first to explain CRM performance in Tunisian hotels. It helps to highlight the importance of the visitors’ behavior in hotels, which explains, among other things, the difficulty of maintaining long-lasting relationship with hotel guests, despite a good system management and a good customer-centric culture.

Details

Journal of Hospitality and Tourism Technology, vol. 6 no. 3
Type: Research Article
ISSN: 1757-9880

Keywords

Article
Publication date: 14 November 2008

Ping Wang and E. Burton Swanson

The paper aims to raise the question: how can a new information technology's (IT's) early momentum toward widespread adoption and eventual institutionalization be sustained? The…

3265

Abstract

Purpose

The paper aims to raise the question: how can a new information technology's (IT's) early momentum toward widespread adoption and eventual institutionalization be sustained? The purpose of the paper is to examine sustaining technological momentum as a form of institutional work and entrepreneurship not widely recognized as such.

Design/methodology/approach

The paper reports a case study of Business Week's special advertising section used in 2000‐2004 to both exploit and help sustain the momentum of customer relationship management (CRM).

Findings

The study finds that the advertisement section's producers employed it over several years to recurrently produce and disseminate credible discourse advancing CRM, incorporating models for action, and providing fresh meanings to the organizing vision for this technology so as to accentuate its progress and keep it worthy of continued attention. Most significantly, acquired momentum, while problematic to sustain, can nevertheless serve as its own resource, to be continuously reinvested in the form of public discourse which must itself be kept “lively” so that momentum may be extended.

Originality/value

The paper contributes to the institutional explanation of IT diffusion by theorizing the process of sustaining technological momentum as an important institution‐building task. In particular, it illuminates the contribution of entrepreneurially produced and disseminated discourse to this process and provides an illustration and analysis of specific forms of institutional work, strategies, and tactics employed in the process. Additionally, the paper suggests that institutional work for sustaining technological momentum differs in certain respects from that needed to launch a technology so as to acquire momentum in the first place.

Details

Information Technology & People, vol. 21 no. 4
Type: Research Article
ISSN: 0959-3845

Keywords

Article
Publication date: 28 October 2013

ThuyUyen H. Nguyen and Teresa S. Waring

The aim of this paper is to use an innovation decision process to examine CRM technology adoption in small to medium-sized enterprises and its intrinsic link to the nature of the…

9817

Abstract

Purpose

The aim of this paper is to use an innovation decision process to examine CRM technology adoption in small to medium-sized enterprises and its intrinsic link to the nature of the organisation and the individuals within it.

Design/methodology/approach

A survey was administered to SMEs in Southern California to measure the organisational characteristics, specifically management characteristics, employee characteristics, IT resources and firm characteristics. The perception of CRM, decision to adopt CRM, and extent of CRM implementation were also measured. Previously validated instruments were used where required. The data were analysed using multivariate and logistic regression.

Findings

The results indicate that management's innovativeness affects the firm's perception of CRM systems, but age, education and gender do not. The decision to implement a CRM system is influenced by management's perception of CRM, employee involvement, the firm's size, its perceived market position, but not the industry sector. However, the number and types of CRM features implemented are affected by management's perception of CRM, employee involvement, the firm's size, the industry sector, but not its perceived market position.

Research limitations/implications

This study is specific to Southern California and the sample size is relatively small, although sufficient for this analysis. The study should be replicated in more diverse geographic settings with a larger sample.

Practical implications

The study provides evidence of the need for management to be supportive of innovation and technology, to evaluate the available resources (IT knowledge, skills, infrastructure) within the organisation, to recognise the importance of employees' contributions, and to be aware of the features appropriate to their company's size and industry sector before undertaking CRM technology adoption.

Originality/value

The findings from this study extend the understanding of CRM adoption in SMEs and help in building a greater understanding of the factors associated with such adoption. It will be of great value to owners/managers in SMEs who are considering adopting CRM.

Details

Journal of Small Business and Enterprise Development, vol. 20 no. 4
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 2 February 2018

Adam Powell, Charles H. Noble, Stephanie M. Noble and Sumin Han

The purpose of this paper is to examine the use of technology in customer relationship management (CRM) support capabilities by using an environmental contingency perspective. By…

2576

Abstract

Purpose

The purpose of this paper is to examine the use of technology in customer relationship management (CRM) support capabilities by using an environmental contingency perspective. By examining the moderating effects of micro- and macro-environmental characteristics in which CRM support capabilities are used, the authors seek to extend the literature on CRM technology effectiveness in both customer commitment and overall firm performance. The authors also seek to advance managerial knowledge about CRM support capability technology utilization strategies in various market offering and dynamic market settings.

Design/methodology/approach

The authors utilized a questionnaire to collect data from a sample of 276 small business CRM managers across a wide range of industries. Measures were adapted from the existing literature, and these were largely multiple-item measures of latent variables. The hypotheses were tested using a combination of Ridge regression and a bootstrapping test of mediation. In addition, residual centering was used to reduce multi-collinearity in the interaction analysis.

Findings

The contingency/fit analysis performed in this research highlights the complex nature of the use of technology in CRM support capabilities. The benefits of a man vs a machine CRM support capability depend on the support function (whether marketing, sales, service, data access or data analysis), as well as upon the characteristics of the operating environment. Machine-based marketing support is positively related with customer commitment in turbulent markets, and machine-based service support is preferred in technologically turbulent markets. Sales support, on the other hand, is positively related to customer commitment in technologically turbulent markets when performed by man rather than machine.

Practical implications

CRM support capabilities differ across firms and markets, thus a “one size fits all” approach is not appropriate. This research shows under what conditions a machine-based approach to CRM can be effective for small businesses.

Originality/value

This research is the first to consider market offering and turbulence variables as moderators of the relationship between technology use in CRM support capabilities and customer commitment. Taking this contingency approach, the authors find that resource-based competitive advantage is obtainable based on the fit of the resources (e.g. CRM capabilities) to the environmental characteristics of the firm. Through this perspective that is unique to CRM research, the authors are able to provide both general and specific recommendations to managers and researchers.

Details

European Journal of Marketing, vol. 52 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 6 September 2018

Neeraj Kumar Dubey and Purnima Sangle

The purpose of this paper is to develop and validate a scale for measuring a customer’s perception of customer relationship management (CRM) initiatives of a bank. Based upon…

1483

Abstract

Purpose

The purpose of this paper is to develop and validate a scale for measuring a customer’s perception of customer relationship management (CRM) initiatives of a bank. Based upon resource-based view, CRM technology capability has been conceptualized as a multidimensional construct comprising of technology, people and business resource (process). This study aims to develop a comprehensive scale for performance measurement of CRM technology capability, customer orientation and co-creation from the customer perspective.

Design/methodology/approach

A systematic scale development process was adopted consisting of three phases, a qualitative inquiry which included item generation through literature review, expert opinion and focus group study, scale purification and refinement using item analysis and exploratory factor analysis, and scale validation using confirmatory factor analysis. The study sample consisted of 324 respondents, with a usable response rate of 68 percent.

Findings

The findings of the empirical study resulted in a 42-item scale that measures CRM technology capability (technology, people and process), customer orientation, co-creation and relationship quality and outcome (RQO) (satisfaction, trust, commitment and loyalty). The predictive validity assessment model suggested that CRM technology capability has a higher impact on RQO. The empirical findings also suggest that technology is found to be the most important factor compared to people and process for CRM technology capability. The findings are aligned with literature review and expert opinion that the evolving collaborative-technologies-enabled CRM technology capability has changed the customer relationship paradigm.

Research limitations/implications

The study focused on a scale specific to the banking sector to avoid conjoint factors, whereas a more generalized scale would have wider applicability across industries. The current study sought to broaden the coverage by including a large number of banks who have implemented CRM.

Practical implications

This reliable and valid scale can help practitioners in measuring the effectiveness of their CRM implementation from the customer’s perspective, and provide insights that will help them in bridging the gap between their intended objective and actual implementation. They can also use this study to measure pre- and post-CRM implementation to see the effectiveness. This study also provides relevance of customer orientation and offers insight about co-creation which has taken the center stage because of the emergence of collaborative technologies.

Social implications

This will help in measuring perception of the customer which is an important stakeholder in the engagement. This can help organizations in proactively taking care of customer’s rights and measuring the level of satisfaction proactively, which has become a regulatory requirement in many economies.

Originality/value

This study is possibly one of the first to develop a psychometrically valid scale to measure the customer’s perception of CRM using direct measures. The findings provide insight into the factors that contribute to the effectiveness of CRM practices in the banking sector. This study demonstrates that CRM technology capability, customer orientation and co-creation play a very critical role.

Details

Journal of Advances in Management Research, vol. 16 no. 1
Type: Research Article
ISSN: 0972-7981

Keywords

Article
Publication date: 3 October 2022

Sümeyye Özdemir, Fatma Sonmez Cakir and Zafer Adiguzel

Banks are fiercely competitive among themselves, focused on satisfying and retaining customers through the extensive use of technology for service innovation and delivery. In this…

Abstract

Purpose

Banks are fiercely competitive among themselves, focused on satisfying and retaining customers through the extensive use of technology for service innovation and delivery. In this context, the study aims to understand the impact of customer relationship management (CRM) and innovation capability, including strategy and technology elements, on customer satisfaction and the financial performance of banks.

Design/methodology/approach

The sample population of the study consists of bank employees. Analyzes were made using the SMARTPLS program, and within the scope of the study, data were collected from 272 bank employees.

Findings

As a result of the analyzes, it can be explained that the innovation capability coupled with the CRM strategy and related technology have positive effects on both financial performance and customer satisfaction.

Research limitations/implications

The research was conducted in banks that have an important position in the service sector. In terms of location, the data was collected in Istanbul because the headquarters are in Istanbul. Therefore, these limitations should be taken into account in future studies.

Originality/value

The research is quite new and up-to-date in terms of examining CRM from a strategic and technological point of view, as well as examining innovation competency.

Article
Publication date: 29 November 2019

Mohamad Abu Ghazaleh and Abdelrahim M. Zabadi

Internet of things (IoT) and big data (BD) could change how the societies function. This paper explores the role of IoT and BD and their impact on customer relationship management…

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Abstract

Purpose

Internet of things (IoT) and big data (BD) could change how the societies function. This paper explores the role of IoT and BD and their impact on customer relationship management (CRM) investments in modern customer service. The purpose of this paper is to develop an analytic hierarchy planning framework to establish criteria weights and to develop a general self-assessment model for determining the most important factors influencing the IoT and BD investment in CRM. The authors found that most studies have focused on conceptualizing the impact of IoT without BD and with limited empirical studies and analytical models. This paper sheds further light on the topic by presenting both IoT and BD aspects of future CRM.

Design/methodology/approach

The analytic hierarchy process (AHP) methodology is used to weight and prioritize the factors influencing the IoT and BD investment in modern CRM in the service industry. The AHP framework resulted in a ranking of 21 sustainability sub-factors based on evaluations by experienced information technology and customer service professionals.

Findings

The paper provides significant insight on the new frontier of CRM, focusing on the use of IoT and BD and the respective solutions to address them were identified. This study primarily contributes in providing the process of effectively managing and implementing IoT and BD in big businesses by identifying the connecting link between firms and customers.

Practical implications

The understanding of new frontier of CRM connective via IoT and BD can solve the dilemmas and challenges linked to the practice of implement IoT and BD in the information systems field. The study provides valuable information and critical analysis of IoT and BD with regard to the integration of CRM. Finally, this study further provides directions for future researchers.

Originality/value

IoT and BD are a growing phenomenon, which business decision-makers and information professionals need to consider seriously to properly ascertain the modern CRM dimensions in the digital economies. They also should embrace the proper CRM innovation, which is powered by IoT and BD, and discover how IoT and BD can bring the next level of maturity to CRMCRM of everything.”

Details

International Journal of Organizational Analysis, vol. 28 no. 1
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 2 September 2014

Michael Newby, Thuyuyen H. Nguyen and Teresa S. Waring

The customer relationship management (CRM) technology adoption process in small- and medium-sized enterprises (SMEs) is an under-researched area and the purpose of this paper is…

4694

Abstract

Purpose

The customer relationship management (CRM) technology adoption process in small- and medium-sized enterprises (SMEs) is an under-researched area and the purpose of this paper is to extend the knowledge and offer greater understanding of the CRM adoption process through an empirical study in the USA.

Design/methodology/approach

In this study it is hypothesized that the likelihood of CRM technology being adopted is dependent on management characteristics, organizational characteristics and management's perception of CRM technology. To investigate the proposed model a survey of SMEs in the retail, manufacturing and services sectors was conducted in Southern California, USA.

Findings

The results indicate that management characteristics significantly influence a firm's perception of CRM technology specifically innovativeness and positive attitude to CRM. Organizational characteristics such as the employee, information technology (IT) resources, a firms’ innovativeness influence the likelihood that CRM technology will be adopted and the extent to which CRM technology will be implemented.

Research limitations/implications

First, the industries focused on were in retail, manufacturing and services. Second, the sample was geographically specific to Southern California. Third, the sample size in this study was relatively small, although it is within the testable range. Finally, only one respondent was surveyed from each firm.

Practical implications

Management regardless of gender, age or education level, must be supportive, innovative and have a positive attitude towards the new IT application, as positive perception will likely to lead to decision to adopt. In addition, there must be innovation within the organization and the firm must have the ability to absorb knowledge and to use it. There must be an availability of IT resources, both infrastructure and skills to support the change.

Originality/value

The results of this study have implications for CRM adoption in SMEs. More importantly, they suggest a framework which demonstrates the necessary linkage between organizational characteristics and CRM adoption process.

Details

Journal of Enterprise Information Management, vol. 27 no. 5
Type: Research Article
ISSN: 1741-0398

Keywords

Book part
Publication date: 28 September 2023

Samir Yerpude and Sonica Rautela

A paradigm shift was observed a couple of decades back when the relationship marketing took over the transactional marketing. Concepts such as customer lifetime value came into…

Abstract

A paradigm shift was observed a couple of decades back when the relationship marketing took over the transactional marketing. Concepts such as customer lifetime value came into existence. Customer lifetime value is nothing but the aggregate income which an organisation can expect from a customer as long as the customer remains a client. Customer Relationship Management (CRM) took the centre stage as the organisations are transformed into customer-centric organisations. The implementation of CRM earmarked the collection of customer data that enabled the personalisation of products. Business use cases emerged with differential pricing models and loyalty programs contributing to the profitability of the organisations. The different types of CRM, i.e. Strategic CRM, Operational CRM, Analytical CRM and Collaborative CRM, contributed further to the organisation to generate value for the customers as well as for the organisation. Innovations in the digital technologies supported the business use cases with the help of real-time data. The usage of real-time analytics delivered unmatched customer experience resulting in a higher degree of customer satisfaction and customer retention. Customer retention as we know is directly related to the longevity of an organisation, while customer acquisition is expensive. Researchers in this chapter have attempted to unleash the importance of CRM simultaneously presenting the impact of digital technologies on CRM. Readers could be greatly benefitted from this research as practical use cases are discussed, while academicians can cascade this information further.

Details

Digital Transformation, Strategic Resilience, Cyber Security and Risk Management
Type: Book
ISBN: 978-1-83797-009-4

Keywords

1 – 10 of over 5000