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Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology

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  • Rapp, Adam
  • Trainor, Kevin J.
  • Agnihotri, Raj
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    Abstract

    This study examines how technology and complementary resources are bundled to form capabilities that foster durable customer relationships. Drawing from the literature in marketing, strategic management, and information systems, the first outcome is a theoretically grounded conceptualization of CRM technology capability comprised of three complementary resources: technology, business, and human resources. The second key finding is that CRM technology capability and customer orientation have a positive association with the development of durable customer relationships. These resources also have a positive interactive effect on customer-linking capability, highlighting the importance of aligning strategic business and technology resources. Finally, the authors find that customer-linking capability has a positive relationship with customer relationship performance and that the rapidity of changes in the external environment moderates this relationship. This study addresses these research questions in a cross-sectional study of 215 organizations using a partial least squares modeling approach.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Business Research.

    Volume (Year): 63 (2010)
    Issue (Month): 11 (November)
    Pages: 1229-1236

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    Handle: RePEc:eee:jbrese:v:63:y:2010:i:11:p:1229-1236

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    Web page: http://www.elsevier.com/locate/jbusres

    Related research

    Keywords: Customer relationship management Customer orientation Information technology Marketing capabilities;

    References

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    1. Im, Subin & Hussain, Mahmood & Sengupta, Sanjit, 2008. "Testing interaction effects of the dimensions of market orientation on marketing program creativity," Journal of Business Research, Elsevier, vol. 61(8), pages 859-867, August.
    2. Evans, Martin G., 1985. "A Monte Carlo study of the effects of correlated method variance in moderated multiple regression analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 36(3), pages 305-323, December.
    3. Ko, Eunju & Kim, Sook Hyun & Kim, Myungsoo & Woo, Ji Young, 2008. "Organizational characteristics and the CRM adoption process," Journal of Business Research, Elsevier, vol. 61(1), pages 65-74, January.
    4. Wu, Lei-Yu, 2007. "Entrepreneurial resources, dynamic capabilities and start-up performance of Taiwan's high-tech firms," Journal of Business Research, Elsevier, vol. 60(5), pages 549-555, May.
    5. Hooley, Graham J. & Greenley, Gordon E. & Cadogan, John W. & Fahy, John, 2005. "The performance impact of marketing resources," Journal of Business Research, Elsevier, vol. 58(1), pages 18-27, January.
    6. Wu, Lei-Yu, 2010. "Applicability of the resource-based and dynamic-capability views under environmental volatility," Journal of Business Research, Elsevier, vol. 63(1), pages 27-31, January.
    7. Olavarrieta, Sergio & Friedmann, Roberto, 2008. "Market orientation, knowledge-related resources and firm performance," Journal of Business Research, Elsevier, vol. 61(6), pages 623-630, June.
    8. Borges, Mauro & Hoppen, Norberto & Luce, Fernando Bins, 2009. "Information technology impact on market orientation in e-business," Journal of Business Research, Elsevier, vol. 62(9), pages 883-890, September.
    9. Chang, Woojung & Park, Jeong Eun & Chaiy, Seoil, 2010. "How does CRM technology transform into organizational performance? A mediating role of marketing capability," Journal of Business Research, Elsevier, vol. 63(8), pages 849-855, August.
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    Cited by:
    1. Dentoni, Domenico & English, Francis & Schwarz, Daniela, 2014. "The Impact of Public R&D on Marketing and Supply Chains on Small Farms’ Market Sensing Capability: Evidence from the Australian Seafood Industry," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 17(1).
    2. Roberts, Nicholas & Grover, Varun, 2012. "Investigating firm's customer agility and firm performance: The importance of aligning sense and respond capabilities," Journal of Business Research, Elsevier, vol. 65(5), pages 579-585.
    3. Rapp, Adam & Beitelspacher, Lauren Skinner & Schillewaert, Niels & Baker, Thomas L., 2012. "The differing effects of technology on inside vs. outside sales forces to facilitate enhanced customer orientation and interfunctional coordination," Journal of Business Research, Elsevier, vol. 65(7), pages 929-936.
    4. Ringle, Christian M. & Sarstedt, Marko & Schlittgen, Rainer & Taylor, Charles R., 2013. "PLS path modeling and evolutionary segmentation," Journal of Business Research, Elsevier, vol. 66(9), pages 1318-1324.
    5. Thai, Mai Thi Thanh & Turkina, Ekaterina, 2014. "Macro-level determinants of formal entrepreneurship versus informal entrepreneurship," Journal of Business Venturing, Elsevier, vol. 29(4), pages 490-510.
    6. Trainor, Kevin J. & Andzulis, James (Mick) & Rapp, Adam & Agnihotri, Raj, 2014. "Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM," Journal of Business Research, Elsevier, vol. 67(6), pages 1201-1208.

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