IDEAS home Printed from https://ideas.repec.org/a/inm/orserv/v14y2022i1p60-75.html

Linking Customization Capability with CRM Technology Adoption and Strategic Alignment

Author

Listed:
  • Hung-Tai Tsou

    (College of Management and Design, Ming Chi University of Technology, New Taipei City 243303, Taiwan)

Abstract

Building on contingency theory and the input–process–output model, this paper investigates the relationships between customer relationship management (CRM) technology adoption, customization capability, CRM effectiveness, and strategic alignment. By surveying senior managers of customized service projects from 288 information technology service firms in Taiwan, we find that CRM technology adoption has a positive relationship with customization capacity, which is, in turn, positively correlated with CRM effectiveness with the correlation being moderated by strategic alignment. This study suggests that CRM marketing and operational technologies can enhance CRM effectiveness via customization capability. This study also uncovers approaches to achieving enhancement.

Suggested Citation

  • Hung-Tai Tsou, 2022. "Linking Customization Capability with CRM Technology Adoption and Strategic Alignment," Service Science, INFORMS, vol. 14(1), pages 60-75, March.
    • Handle: RePEc:inm:orserv:v:14:y:2022:i:1:p:60-75
    DOI: 10.1287/serv.2021.0286
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/serv.2021.0286
    Download Restriction: no
    File URL: https://libkey.io/10.1287/serv.2021.0286?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ryding, Daniella, 2010. "The impact of new technologies on customer satisfaction and business to business customer relationships: Evidence from the soft drinks industry," Journal of Retailing and Consumer Services, Elsevier, vol. 17(3), pages 224-228.
    2. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris & Thrassou, Alkis & Ghosh, Soumya Kanti, 2021. "Adoption of artificial intelligence-integrated CRM systems in agile organizations in India," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    3. Sandrin, Enrico & Trentin, Alessio & Forza, Cipriano, 2018. "Leveraging high-involvement practices to develop mass customization capability: A contingent configurational perspective," International Journal of Production Economics, Elsevier, vol. 196(C), pages 335-345.
    4. Qiang Wang & Zhiqiang Wang & Xiande Zhao, 2015. "Strategic orientations and mass customisation capability: the moderating effect of product life cycle," International Journal of Production Research, Taylor & Francis Journals, vol. 53(17), pages 5278-5295, September.
    5. Becker, Jan U. & Greve, Goetz & Albers, Sönke, 2009. "The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention," International Journal of Research in Marketing, Elsevier, vol. 26(3), pages 207-215.
    6. Peltier, James W. & Zahay, Debra & Lehmann, Donald R., 2013. "Organizational Learning and CRM Success: A Model for Linking Organizational Practices, Customer Data Quality, and Performance," Journal of Interactive Marketing, Elsevier, vol. 27(1), pages 1-13.
    7. Rajiv Sabherwal & Yolande E. Chan, 2001. "Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders," Information Systems Research, INFORMS, vol. 12(1), pages 11-33, March.
    8. N. Venkatraman, 1989. "Strategic Orientation of Business Enterprises: The Construct, Dimensionality, and Measurement," Management Science, INFORMS, vol. 35(8), pages 942-962, August.
    9. Jonathan W. Palmer & M. Lynne Markus, 2000. "The Performance Impacts of Quick Response and Strategic Alignment in Specialty Retailing," Information Systems Research, INFORMS, vol. 11(3), pages 241-259, September.
    10. Jie G. McCardle & Mary Beth Rousseau & Dennis Krumwiede, 2019. "The effects of strategic alignment and competitive priorities on operational performance: The role of cultural context," Operations Management Research, Springer, vol. 12(1), pages 4-18, June.
    11. Vlačić, Božidar & Corbo, Leonardo & Costa e Silva, Susana & Dabić, Marina, 2021. "The evolving role of artificial intelligence in marketing: A review and research agenda," Journal of Business Research, Elsevier, vol. 128(C), pages 187-203.
    12. Damien Chaney & Julien Gardan & Julien de Freyman, 2021. "A framework for the relationship implications of additive manufacturing (3D printing) for industrial marketing: servitization, sustainability and customer empowerment," Post-Print hal-03624662, HAL.
    13. Foltean, Florin Sabin & Trif, Simona Mihaela & Tuleu, Daniela Liliana, 2019. "Customer relationship management capabilities and social media technology use: Consequences on firm performance," Journal of Business Research, Elsevier, vol. 104(C), pages 563-575.
    14. Inayat Ullah & Rakesh Narain, 2020. "The Impact of Customer Relationship Management and Organizational Culture on Mass Customization Capability and Firm Performance," International Journal of Customer Relationship Marketing and Management (IJCRMM), IGI Global Scientific Publishing, vol. 11(3), pages 60-81, July.
    15. Zhang, Min & Guo, Hangfei & Huo, Baofeng & Zhao, Xiande & Huang, Jianbo, 2019. "Linking supply chain quality integration with mass customization and product modularity," International Journal of Production Economics, Elsevier, vol. 207(C), pages 227-235.
    16. Christoph Zott & Raphael Amit, 2008. "The fit between product market strategy and business model: implications for firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(1), pages 1-26, January.
    17. Mincong Tang & Yinan Qi & Min Zhang, 2017. "Impact of Product Modularity on Mass Customization Capability: An Exploratory Study of Contextual Factors," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 939-959, July.
    18. Lewlisa Saha & Hrudaya Kumar Tripathy & Soumya Ranjan Nayak & Akash Kumar Bhoi & Paolo Barsocchi, 2021. "Amalgamation of Customer Relationship Management and Data Analytics in Different Business Sectors—A Systematic Literature Review," Sustainability, MDPI, vol. 13(9), pages 1-35, May.
    19. Michael Ahearne & Eli Jones & Adam Rapp & John Mathieu, 2008. "High Touch Through High Tech: The Impact of Salesperson Technology Usage on Sales Performance via Mediating Mechanisms," Management Science, INFORMS, vol. 54(4), pages 671-685, April.
    20. Peppard, Joe, 2000. "Customer Relationship Management (CRM) in financial services," European Management Journal, Elsevier, vol. 18(3), pages 312-327, June.
    21. Margaret Peteraf & Randal Reed, 2007. "Managerial discretion and internal alignment under regulatory constraints and change," Strategic Management Journal, Wiley Blackwell, vol. 28(11), pages 1089-1112, November.
    22. Neeraj Arora & Ty Henderson, 2007. "Embedded Premium Promotion: Why It Works and How to Make It More Effective," Marketing Science, INFORMS, vol. 26(4), pages 514-531, 07-08.
    23. Sardana, Deepak & Terziovski, Mile & Gupta, Narain, 2016. "The impact of strategic alignment and responsiveness to market on manufacturing firm's performance," International Journal of Production Economics, Elsevier, vol. 177(C), pages 131-138.
    24. Fogliatto, Flavio S. & da Silveira, Giovani J.C. & Borenstein, Denis, 2012. "The mass customization decade: An updated review of the literature," International Journal of Production Economics, Elsevier, vol. 138(1), pages 14-25.
    25. Steve Brown & Kate Blackmon, 2005. "Aligning Manufacturing Strategy and Business‐Level Competitive Strategy in New Competitive Environments: The Case for Strategic Resonance," Journal of Management Studies, Wiley Blackwell, vol. 42(4), pages 793-815, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Minnu F. Pynadath & T. M. Rofin & Sam Thomas, 2023. "Evolution of customer relationship management to data mining-based customer relationship management: a scientometric analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(4), pages 3241-3272, August.
    2. Pînzaru Florina & Zbuchea Alexandra & Stratone Mădălina-Elena, 2025. "AI in Project Management: Technical Prerequisites, Digital Knowledge, and Organizational Maturity," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 19(1), pages 4146-4160.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abbasali Hosseinian Dastjerdi & Mustafa Tumer, 2024. "The Effects of Strategic Orientation on Mass Customization Capacity in Iran: The Mediating Role of Intellectual Capital," SAGE Open, , vol. 14(3), pages 21582440241, August.
    2. Shao, Xiao-Feng, 2020. "What is the right production strategy for horizontally differentiated product: Standardization or mass customization?," International Journal of Production Economics, Elsevier, vol. 223(C).
    3. Alessio Trentin & Enrico Sandrin & Svetlana Suzic & Chiara Grosso & Cipriano Forza, 2025. "Reconciling Product Flexibility with Cost, Delivery, and Quality: The Importance of Bundling Mass Customization Practices," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(2), pages 269-293, June.
    4. Shi Yin & Yuanyuan Yu & Nan Zhang, 2024. "The Effect of Digital Green Strategic Orientation On Digital Green Innovation Performance: From the Perspective of Digital Green Business Model Innovation," SAGE Open, , vol. 14(2), pages 21582440241, June.
    5. Huigang Liang & Nianxin Wang & Yajiong Xue & Shilun Ge, 2017. "Unraveling the Alignment Paradox: How Does Business—IT Alignment Shape Organizational Agility?," Information Systems Research, INFORMS, vol. 28(4), pages 863-879, December.
    6. Na Liu & Pui-Sze Chow & Hongshan Zhao, 2020. "Challenges and critical successful factors for apparel mass customization operations: recent development and case study," Annals of Operations Research, Springer, vol. 291(1), pages 531-563, August.
    7. Sandrin, Enrico & Trentin, Alessio & Forza, Cipriano, 2018. "Leveraging high-involvement practices to develop mass customization capability: A contingent configurational perspective," International Journal of Production Economics, Elsevier, vol. 196(C), pages 335-345.
    8. Ivens, Björn & Kasper-Brauer, Kati & Leischnig, Alexander & Thornton, Sabrina C., 2024. "Implementing customer relationship management successfully: A configurational perspective," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    9. Siddharth Gaurav Majhi & Ambuj Anand & Arindam Mukherjee & Nripendra P. Rana, 2022. "The Optimal Configuration of IT-Enabled Dynamic Capabilities in a firm’s Capabilities Portfolio: a Strategic Alignment Perspective," Information Systems Frontiers, Springer, vol. 24(5), pages 1435-1450, October.
    10. Friess, Maximilian & Haumann, Till & Alavi, Sascha & Ionut Oproiescu, Alexandru & Schmitz, Christian & Wieseke, Jan, 2024. "The contingent effects of innovative digital sales technologies on B2B firms’ financial performance," International Journal of Research in Marketing, Elsevier, vol. 41(4), pages 703-723.
    11. Krzysztof Borodako & Jadwiga Berbeka & Michał Rudnicki, 2021. "Innovation Orientation in Business Services," Books, Edward Elgar Publishing, number 19897.
    12. Yue-Yang Chen & Hui-Ling Huang, 2014. "Conceptualizing and Developing Alignment Model between Business Strategy and Knowledge Management Strategy," Proceedings of International Academic Conferences 0201375, International Institute of Social and Economic Sciences.
    13. Mosayebi, Mohsen & Fathi, Michel & Hedayati, Mehrnaz Khalaj & Ivanov, Dmitry, 2024. "Time-to-Adapt (TTA)," International Journal of Production Economics, Elsevier, vol. 278(C).
    14. Ying-Kai Liao & Shu Wang & Vo Thi Thinh & Wann-Yih Wu, 2025. "An Investigation of Leading and Lagging Indicators for Balanced Scorecard: A Meta-Analytic Approach," SAGE Open, , vol. 15(4), pages 21582440251, October.
    15. Stefan Schweikl & Robert Obermaier, 2023. "Lost in translation: IT business value research and resource complementarity—an integrative framework, shortcomings and future research directions," Management Review Quarterly, Springer, vol. 73(4), pages 1713-1749, December.
    16. Jun Tian & Kanliang Wang & Yan Chen & Björn Johansson, 2010. "From IT deployment capabilities to competitive advantage: An exploratory study in China," Information Systems Frontiers, Springer, vol. 12(3), pages 239-255, July.
    17. 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.
    18. Jochen Nürk, 2019. "Dynamic Alignment of Digital Supply Chain Business Models," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 5(1), pages 41-82.
    19. Rahman, Muhammad Sabbir & Bag, Surajit & Gupta, Shivam & Sivarajah, Uthayasankar, 2023. "Technology readiness of B2B firms and AI-based customer relationship management capability for enhancing social sustainability performance," Journal of Business Research, Elsevier, vol. 156(C).
    20. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris & Jabeen, Fauzia, 2022. "Digital transformation of organization using AI-CRM: From microfoundational perspective with leadership support," Journal of Business Research, Elsevier, vol. 153(C), pages 46-58.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orserv:v:14:y:2022:i:1:p:60-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.