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

  • Chang, Woojung
  • Park, Jeong Eun
  • Chaiy, Seoil
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    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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    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
    Contact details of provider: Web page: http://www.elsevier.com/locate/jbusres

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    1. 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.
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    5. 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.
    6. 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.
    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. 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.
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