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Do strong innovation capability and environmental turbulence influence the nexus between CRM and business performance?

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  • Sikandar Ali Qalati
  • MengMeng Jiang
  • Samuel Gyedu
  • Emmanuel Kwaku Manu

Abstract

This research has dealt with the gaps in the previous literature and the preponderant problems in the Ghana telecom industry. The main objective is to explore the roles of innovation capability and environmental turbulence on the relationship between customer relationship management and business performance in the Ghana telecommunication industry. Hierarchical linear regression and structural equation models through STATA and AMOS statistical software were employed to analyze the obtained data from a structured questionnaire. These models were used based on the type of analyses employed in our study and since they are robust in determining and validating the proposed causal relationships among variables. To summarize the findings, (1) the study found that customer relationship management constructs have a positive impact on innovation capability and business performance. (2) We discovered that innovation capability constructs have a positive effect on business performance. (3) Innovation capability mediates the relationship between customer relationship management and business performance. (4) Environmental turbulence moderates the relationship between customer relationship management and business performance. These findings contribute immensely to managerial and practical implications by entreating managers to intensify their commitment to CRM and innovation activities such as sharing indispensable information, involving customers, solving problems jointly, building long‐term relationships, and using modern technologies in building powerful partnerships with customers to meet their needs in order to accelerate performance.

Suggested Citation

  • Sikandar Ali Qalati & MengMeng Jiang & Samuel Gyedu & Emmanuel Kwaku Manu, 2024. "Do strong innovation capability and environmental turbulence influence the nexus between CRM and business performance?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7887-7904, December.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:8:p:7887-7904
    DOI: 10.1002/bse.3896
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    References listed on IDEAS

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    1. Li, Biao & Mousa, Saeed & Reinoso, Johanna Rosali Reyes & Alzoubi, Haitham M. & Ali, Anis & Hoang, Anh Duong, 2023. "The role of technology innovation, customer retention and business continuity on firm performance after post-pandemic era in China’s SMEs," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1209-1220.
    2. Kong YuSheng & Masud Ibrahim, 2020. "Innovation Capabilities, Innovation Types, and Firm Performance: Evidence From the Banking Sector of Ghana," SAGE Open, , vol. 10(2), pages 21582440209, May.
    3. Pratono, Aluisius Hery & Mahmood, Rosli, 2014. "The Moderating Effect of Environmental Turbulence in the Relationship between Entrepreneurial Management and Firm Performance," MPRA Paper 58493, University Library of Munich, Germany.
    4. Prajogo, Daniel I., 2016. "The strategic fit between innovation strategies and business environment in delivering business performance," International Journal of Production Economics, Elsevier, vol. 171(P2), pages 241-249.
    5. Najafi-Tavani, Saeed & Zaefarian, Ghasem & Robson, Matthew J. & Naudé, Peter & Abbasi, Faramarz, 2022. "When customer involvement hinders/promotes product innovation performance: The concurrent effect of relationship quality and role ambiguity," Journal of Business Research, Elsevier, vol. 145(C), pages 130-143.
    6. Frederick Owusu Agyapong & Ahmed Agyapong & Kofi Poku, 2017. "Nexus between social capital and performance of micro and small firms in an emerging economy: The mediating role of innovation," Cogent Business & Management, Taylor & Francis Journals, vol. 4(1), pages 1309784-130, January.
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    Cited by:

    1. Drydakis, Nick, 2025. "AI Business Applications Training and Business Outcomes: An Inclusive Intervention for Underrepresented Entrepreneurs," IZA Discussion Papers 18143, Institute of Labor Economics (IZA).
    2. Xianghua Yuan, 2025. "Integrating Fintech, CSR, and green finance: impacts on financial and environmental performance in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-15, December.
    3. Drydakis, Nick, 2025. "AI Business Applications Training and Business Outcomes: An Inclusive Intervention for Underrepresented Entrepreneurs," GLO Discussion Paper Series 1670, Global Labor Organization (GLO).

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