A Model Predicting CRM Resource Effect on Business Performance through CRM Capabilities

Abstract

This study employs the CRM measurement model to the context of customer relationship management (CRM). It is aimed at indirectly examining the relationships between various resources of CRM and business performance. Additionally, this study is aimed at contributing to marketing research by placing an emphasis on CRM technology and their impact on performance. Through collecting secondary data, the direct and indirect effects of CRM resources and capabilities on business performance are examined within a sample of 6 case companies in the UK grocery market during 20152017. Additional measure of CRM capability is aggregated into the firm level to examine its relationship with their corporate performance. Furthermore, capability is categorized through defining the intention of initiating CRM programme. The results find a positive relationship between both CRM resources and their capabilities and performance. Besides, interactive capability is most essential for companies to enhance their CRM. Lastly, the interaction between technology and other resource is significantly associated with business performance. Managers may improve their CRM programs and eliminate side effects more effectively by concentrating on one type of resource to strengthen their most common CRM capability. This paper bridges significant gaps in the current literature through combining RBV and DC perspective, meanwhile, taking a capability view of CRM. Under a contemporary CRM measurement model, it examines how the possession of important CRM resource influences business performance in UK supermarket.