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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

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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jbrese:v:63:y:2010:i:8:p:849-855
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    References listed on IDEAS

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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.
    2. 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.
    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. 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.
    5. 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.
    6. 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.
    7. Shantanu Dutta & Om Narasimhan & Surendra Rajiv, 1999. "Success in High-Technology Markets: Is Marketing Capability Critical?," Marketing Science, INFORMS, pages 547-568.
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    Citations

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    Cited by:

    1. Pingsheng Tong & U. N. Umesh & Jean L. Johnson & Ruby P. Lee, 2016. "Collaborative Relationships — The Role of Information Technology," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(03), pages 1-30, June.
    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. Enrico Baraldi & Antonella La Rocca & Andrea Perna, 2013. "Intra- and inter-organizational effects of a CRM system implementation," MERCATI E COMPETITIVITÀ, FrancoAngeli Editore, vol. 2013(1), pages 13-34.
    4. 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.
    5. Ramanathan, Ramakrishnan & Ramanathan, Usha & Zhang, Yubo, 2016. "Linking operations, marketing and environmental capabilities and diversification to hotel performance: A data envelopment analysis approach," International Journal of Production Economics, Elsevier, vol. 176(C), pages 111-122.
    6. Salojärvi, Hanna & Sainio, Liisa-Maija, 2015. "CRM technology and KAM performance: The mediating effect of key account-related knowledge," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 8(1), pages 435-454.
    7. Abbas Keramati & Fatemeh Shapouri, 2016. "Multidimensional appraisal of customer relationship management: integrating balanced scorecard and multi criteria decision making approaches," Information Systems and e-Business Management, Springer, vol. 14(2), pages 217-251, May.
    8. Mohammed Alamgir & Mohammad Shamsuddoha, 2015. "Customer Relationship Management (Crm) Success Factors: An Exploratory Study," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(1), pages 1-7, January.
    9. Tuleu Daniela, 2015. "Antecedents Of Customer Relationship Management Capabilities," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1285-1294, July.
    10. repec:eee:jbrese:v:79:y:2017:i:c:p:181-188 is not listed on IDEAS
    11. Chang, Woojung & Franke, George R. & Lee, Nick, 2016. "Comparing reflective and formative measures: New insights from relevant simulations," Journal of Business Research, Elsevier, vol. 69(8), pages 3177-3185.
    12. repec:spr:infott:v:17:y:2017:i:3:d:10.1007_s40558-017-0085-4 is not listed on IDEAS
    13. 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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