Customer relationship management capabilities

TLDR

The study addresses gaps in CRM literature by adopting a capability view, developing a valid measurement model, and examining how key resources influence effective deployment of CRM capabilities. The authors aim to extend the resource‑based view to CRM by developing a measurement model of CRM capabilities and exploring its antecedents and performance consequences. Using multiple rounds of questionnaire surveys and structural equation modeling, the authors collected data to build and validate the CRM capabilities measurement model. The three‑factor CRM capabilities model—customer interaction management, customer relationship upgrading, and customer win‑back—was validated, and results confirm that customer orientation, a customer‑centric system, and CRM technology drive capabilities and improve organizational performance, offering managers a practical tool to assess and strengthen CRM programs.

Abstract

Purpose This study seeks to extend the resource‐based view to the context of customer relationship management. It is intended to develop a measurement model of customer relationship management (CRM) capabilities, and to explore the key antecedents and performance consequences of CRM capabilities. Design/methodology/approach Questionnaire survey was used to collect data. In order to develop a reliable and valid measurement model of CRM capabilities, several rounds of questionnaire survey were conducted, and hypotheses were tested by utilizing the technique of structural equation modeling. Findings A three‐factor (customer interaction management capability, customer relationship upgrading capability and customer win‐back capability) measurement model of CRM capabilities is developed and tested. Furthermore, results support the hypothesized influences of customer orientation, customer‐centric organizational system and CRM technology on CRM capabilities, as well as the influence of CRM capabilities on organizational performance. Practical implications This study provides a useful measurement mode of CRM capabilities that managers can use to evaluate the status in quo of CRM capabilities of their firms. Managers may also improve their CRM programs more effectively and efficiently by deploying such strategic resources of firms as customer orientation, customer‐centric organizational system and CRM technology to build and strengthen their CRM capabilities. Originality/value The paper addresses significant gaps in the current literature by taking a capability view of CRM, developing a valid measurement model of CRM capabilities, and examining how possession of important CRM resources influences the effective deployment of CRM capabilities.