The Impact of Customer Relationship Management and Organizational Culture on Mass Customization Capability and Firm Performance

Author(s):  
Inayat Ullah ◽  
Rakesh Narain

In today's world of heightened competition and ever-growing demand of customers, the development of customer-centric and learning-oriented culture, mass customization capability (MCC), and effective implementation of customer relationship management (CRM) are important determinants of success, but the existing research has largely overlooked how these factors interact and affect firm performance (FP). To address the gap, the present study proposes and empirically examines a framework that relates CRM and organizational culture (OC) to MCC and FP. Based on the data collected through a questionnaire-based survey of Indian manufacturing organizations, the proposed framework and associated hypotheses are empirically examined by using structural equation modelling based on partial least squares (PLS-SEM). The results indicate that the extent of effort employed by the firms to implement CRM and development of learning-oriented OC positively affects FP. Furthermore, MCC and OC have significant indirect impact on the relationship between CRM and FP.

Author(s):  
Bryan Soh Yuen Liew ◽  
T. Ramayah ◽  
Jasmine A. L. Yeap

The Web hosting industry is characterized by the rapid growth of information technology trends as well as constantly growing competition. Market orientation and Customer Relationship Management (CRM) are thought of as key solutions to this predicament. Thus, the purpose of this study was to test the effect of market orientation on CRM implementation intensity and subsequently the effect of CRM implementation intensity on CRM performance. Data was collected via online questionnaires from 81 online Web hosting companies around the world and analyzed using Partial Least Squares structural equation modeling technique. The results indicated that market orientation had a significant positive impact on CRM implementation intensity and CRM implementation intensity had a direct positive influence on CRM performance. A test of mediation also confirmed that CRM implementation intensity mediated the relationship between market orientation and CRM performance. Implications of these findings are further explored.


2016 ◽  
Vol 28 (1) ◽  
pp. 89-112 ◽  
Author(s):  
Roya Rahimi ◽  
Ebru Gunlu

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.


2015 ◽  
Vol 6 (3) ◽  
pp. 271-287 ◽  
Author(s):  
Nedra Bahri-Ammari ◽  
Khaldoon Nusair

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Shamim Hossain ◽  
Mst Farjana Rahman ◽  
Xiaoyan Zhou

PurposeSocial commerce is a subpart of electronic commerce (e-commerce), where social media is forced to support user contributions. The purpose of this study is to measure the impact of customers' interpersonal interactions in social commerce on customer relationship management (CRM) performance, based on the flow, commitment-trust and stimulus–organism–response (SOR) theories.Design/methodology/approachOn the basis of the SOR framework, the authors developed a study model to determine the impact on CRM performance of customers' interpersonal interactions in social commerce. The primary data of the study were collected from 640 users of social commerce through a web questionnaire during the COVID-19 (coronavirus disease 2019) pandemic situation, and the authors tested the study model using the approach of covariance-based structural equation modeling (SEM).FindingsResults of the current study reveal that customers' interpersonal interactions in social commerce optimistically influence their perceived flow. Moreover, perceived flow absolutely controls users' trust and CRM performance. In turn, collective users' trust positively influences users' commitment and CRM performance. Finally, collective users' commitment absolutely influences the performance of CRM.Practical implicationsThe authors provide a valuable contribution to the theoretical field of online marketing and CRM. Besides, the findings of this study are relevant for marketers to know the issues for increasing customer trust, commitment and performance of CRM.Originality/valueThe current study develops a model based on the flow, commitment-trust and stimulus–organism–response (SOR) theories. The authors' research is the first to estimate the effect of customers' interpersonal interactions in social commerce on CRM performance.


2016 ◽  
Vol 10 (3) ◽  
pp. 142
Author(s):  
Zinat Ghaedi ◽  
Abdolali Keshtegar ◽  
Mohammad Ghasemi

<p>The aim of this study was to analyze the impact of knowledge management on success of customer relationship<br />management: mediating impacts of organizational factors (staffs, leadership, organizational structure) in capital<br />bank by descriptive-correlation method. Accordingly, to measure knowledge management, the Fang and Choai<br />(2009) questionnaire was applied, to evaluate organizational variables (staffs, leadership, organizational<br />structure), Greve &amp; Albers (2006) questionnaire was used and to assess technology of customer relationship<br />management, Chang et al (2006) questionnaire was employed and regarding success of customer relationship<br />management, Bang (2005) and Chen and Chung (2004) questionnaires were used. The population of this study<br />included all staffs of capital bank in Tehran city that were 642 staffs which based on Cochran formula, 240 staffs<br />were selected by cluster sampling. To analyze data, Pearson correlation test and structural equation model were<br />employed by using SPSS and AMOS software. The obtained results of this study indicated that the knowledge<br />management affected significantly on organizational factors (staffs, leadership, organizational structure).<br />Furthermore, the technology of interaction management affected significantly on success of customer<br />relationship management and also technology of customer relationship management influenced significantly on<br />organizational factors (staffs, leadership, organizational structure). Organizational factors (staffs, leadership,<br />organizational structure) affected significantly on success of customer relationship management. The findings of<br />this study showed that the knowledge management did not affect significantly on success of customer<br />relationship management. Technology of customer relationship management by mediating variable of<br />organizational factors did not affect significantly on success of customer relationship management.</p>


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gordon Abekah-Nkrumah ◽  
Maame Yaa Antwi ◽  
Stephen Mahama Braimah ◽  
Charles Gyamfi Ofori

Purpose This paper aims to examine the effect of customer relationship management (CRM) on patient satisfaction and patient loyalty, controlling for other socio-demographic characteristics. Design/methodology/approach The study used a two-stage sampling process and structured questionnaires to collect data from 788 patients from three health facilities (public, quasi-public and private) in Greater Accra, Ghana. The data collected was analyzed using descriptive statistics and regression via the partial least squares-based structural equation model. Findings The results suggest that CRM is significantly positively correlated with patient satisfaction and patient loyalty, with patient satisfaction also significantly correlated with patient loyalty. Additionally, the results suggest that the introduction of education, health facility ownership, health insurance status and gender, neither impact significantly on the relationship between CRM and patient satisfaction/patient loyalty nor influenced patient satisfaction and patient loyalty directly. Research limitations/implications The findings of the current paper can have substantial practice implications for operators in the health-care industry in Ghana. CRM components such as service quality, customer service, communication and the use of appropriate technology to deliver service will be fundamental if organizations operating in the health-care ecosystem in Ghana are to be able to compete effectively. Originality/value This is one of the very few papers on the relationship between CRM and patient satisfaction and patient loyalty in African health-care literature. Thus, the findings of the paper can constitute a great resource not only to academics but also to practitioners who are looking to be competitive in the health-care market.


2019 ◽  
Vol 7 (3) ◽  
pp. 313-324
Author(s):  
Muhammad Azhar Bhatti ◽  
Muhammad Farhan ◽  
Munawar Javed Ahmad ◽  
Muhammad Naeem Sharif

This research aims to analyze the impact of social customer relationship management (CRM) capabilities and customer engagement on the firm performance in the textile industry of Pakistan. Another purpose of the article is to examine the mediating role of social media usage on the nexus of social CRM capabilities, customer relationship management and firm performance. The customer relation officers of textile industry situated in the Punjab province of Pakistan are the respondents and data were gather by using questionnaires and PLS-SEM was employed for hypotheses testing. The findings revealed that social CRM capabilities and customer engagement have positive nexus with the firm performance while social media usage positively mediates the relationship among the social CRM capabilities, customer relationship management and firm performance. These findings provide the guidance to the regulations making authorities that they should enhance their emphasis on the CRM capabilities, employee engagement and social media usage that enhance the firm performance.


2021 ◽  
Vol 29 (1) ◽  
pp. 103-122
Author(s):  
Cristina Gallego-Gomez ◽  
Carmen De-Pablos-Heredero ◽  
José Luis Montes-Botella

The banking industry has been forced to restructure its processes to get adapted to a more technological environment as a consequence of the changes experienced in the market. Academic literature has paid special attention to the most critical relationship at firms, customers. Customer relationship management (CRM) offers good opportunities to increase efficiencies in this relationship. For this reason, this research analyses to what extent the implementation of CRM systems in the banking industry has offered good results in terms of dynamic capabilities. For that, some dynamic capabilities have been identified after CRMs implementation process has taken place. A theoretical model has been built and empirically validated by means of a representative sample of banking firms applying structural equation model analysis (SEM). Results show how firms, by properly implementing CRM systems, can reach dynamic capabilities. As main practical implications for firms, it is interesting to orient CRMs implementation to reach dynamic capabilities.


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