Social customer relationship management and business performance: Evidence from small and medium enterprises

Abstract

This study examines the impact of Social Customer Relationship Management (SCRM) on competitive advantage, innovation capability, and Small and Medium-sized Enterprises (SMEs) performance. Furthermore, the data was collected from 296 SME owners/managers in Indonesia and analyzed using a Structural Equation Model. The results show that SCRM positively affects SME performance and competitive advantage as well as enhances innovation capability. However, the effect of innovation capability on SME performance was not significant. Competitive advantage also mediates the relationship between SCRM and SMEs performance, and innovation capability mediates the impact of SCRM on competitive advantage. Additionally, the study highlights the importance of SCRM as a resource in driving competitive advantage and enhancing SME Performance through increased innovation capability. SMEs owners/managers should adopt CRM and leverage social media to gain a competitive advantage and improve business outcomes.