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How does CRM technology transform into organizational performance? A mediating role of marketing capability

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  • Chang, Woojung
  • Park, Jeong Eun
  • Chaiy, Seoil
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    Abstract

    Customer relationship management (CRM) technology has attracted significant attention from researchers and practitioners as a facilitator of organizational performance. Even though companies have made tremendous investments in CRM technology, empirical research offers inconsistent support that CRM technology enhances organizational performance. Given this equivocal effect and the increasing need for the generalization of CRM implementation research outside western context, the authors, using data from Korean companies, address the process concerning how CRM technology translates into business outcomes. The results highlight that marketing capability mediates the association between CRM technology use and performance. Moreover, a customer-centric organizational culture and management system facilitate CRM technology use. This study serves not only to clarify the mechanism between CRM technology use and organizational performance, but also to generalize the CRM results in the Korean context.

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    Bibliographic Info

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

    Volume (Year): 63 (2010)
    Issue (Month): 8 (August)
    Pages: 849-855

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    Handle: RePEc:eee:jbrese:v:63:y:2010:i:8:p:849-855

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

    Related research

    Keywords: CRM technology use Marketing capability Customer-centric organizational culture Customer-centric management system;

    References

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    1. Ghosh, B. C. & Liang, Tan Wee & Meng, Tan Teck & Chan, Ben, 2001. "The key success factors, distinctive capabilities, and strategic thrusts of top SMEs in Singapore," Journal of Business Research, Elsevier, vol. 51(3), pages 209-221, March.
    2. Alokparna Basu Monga & Deborah Roedder John, 2007. "Cultural Differences in Brand Extension Evaluation: The Influence of Analytic versus Holistic Thinking," Journal of Consumer Research, University of Chicago Press, vol. 33(4), pages 529-536, December.
    3. Ruiz-Ortega, Mari­a José & Garci­a-Villaverde, Pedro Manuel, 2008. "Capabilities and competitive tactics influences on performance: Implications of the moment of entry," Journal of Business Research, Elsevier, vol. 61(4), pages 332-345, April.
    4. Finney, R. Zachary & Lueg, Jason E. & Campbell, Noel D., 2008. "Market pioneers, late movers, and the resource-based view (RBV): A conceptual model," Journal of Business Research, Elsevier, vol. 61(9), pages 925-932, September.
    5. Shantanu Dutta & Om Narasimhan & Surendra Rajiv, 1999. "Success in High-Technology Markets: Is Marketing Capability Critical?," Marketing Science, INFORMS, vol. 18(4), pages 547-568.
    6. Greenley, Gordon E. & Hooley, Graham J. & Rudd, John M., 2005. "Market orientation in a multiple stakeholder orientation context: implications for marketing capabilities and assets," Journal of Business Research, Elsevier, vol. 58(11), pages 1483-1494, November.
    7. Arie Y. Lewin & John W. Minton, 1986. "Determining Organizational Effectiveness: Another Look, and an Agenda for Research," Management Science, INFORMS, vol. 32(5), pages 514-538, May.
    8. 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.
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    Cited by:
    1. Abdul Alem Mohammed & Basri bin Rashid, 2012. "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, Econjournals, vol. 2(4), pages 220-230.
    2. Rapp, Adam & Trainor, Kevin J. & Agnihotri, Raj, 2010. "Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology," Journal of Business Research, Elsevier, vol. 63(11), pages 1229-1236, November.
    3. 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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