Customer relationship management and firm performance

Coltman, T; Devinney, TM; Midgley, DF

Customer relationship management and firm performance

Coltman, T Devinney, TM Midgley, DF

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Publication Type:: Journal Article
Citation:: Journal of Information Technology, 2011, 26 (3), pp. 205 - 219
Issue Date:: 2011-09-01

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Field	Value	Language
dc.contributor.author	Coltman, T	en_US
dc.contributor.author	Devinney, TM	en_US
dc.contributor.author	Midgley, DF	en_US
dc.date.issued	2011-09-01	en_US
dc.identifier.citation	Journal of Information Technology, 2011, 26 (3), pp. 205 - 219	en_US
dc.identifier.issn	0268-3962	en_US
dc.identifier.uri	http://hdl.handle.net/10453/17394
dc.description.abstract	In this paper, we examine the impact of customer relationship management (CRM) on firm performance using a hierarchical construct model. Following the resource-based view of the firm, strategic CRM is conceptualized as an endogenously determined function of the organization's ability to harness and orchestrate lower-order capabilities that comprise physical assets, such as IT infrastructure, and organizational capabilities, such as human analytics (HA) and business architecture (BA). Our results reveal a positive and significant path between a superior CRM capability and firm performance. In turn, superior CRM capability is positively associated with HA and BA. However, our results suggest that the impact of IT infrastructure on superior CRM capability is indirect and fully mediated by HA and BA. We also find that CRM initiatives jointly emphasizing customer intimacy and cost reduction outperform those taking a less balanced approach. Overall, this paper helps explain why some CRM programs are more successful than others and what capabilities are required to support success. © 2011 JIT Palgrave Macmillan All rights reserved.	en_US
dc.relation.ispartof	Journal of Information Technology	en_US
dc.relation.isbasedon	10.1057/jit.2010.39	en_US
dc.subject.classification	Information Systems	en_US
dc.title	Customer relationship management and firm performance	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	26	en_US
utslib.for	1503 Business and Management	en_US
utslib.for	08 Information and Computing Sciences	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
utslib.for	17 Psychology and Cognitive Sciences	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Strength - CMOS - Centre for Management and Organisation Studies
utslib.copyright.status	closed_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	26	en_US

Abstract:

In this paper, we examine the impact of customer relationship management (CRM) on firm performance using a hierarchical construct model. Following the resource-based view of the firm, strategic CRM is conceptualized as an endogenously determined function of the organization's ability to harness and orchestrate lower-order capabilities that comprise physical assets, such as IT infrastructure, and organizational capabilities, such as human analytics (HA) and business architecture (BA). Our results reveal a positive and significant path between a superior CRM capability and firm performance. In turn, superior CRM capability is positively associated with HA and BA. However, our results suggest that the impact of IT infrastructure on superior CRM capability is indirect and fully mediated by HA and BA. We also find that CRM initiatives jointly emphasizing customer intimacy and cost reduction outperform those taking a less balanced approach. Overall, this paper helps explain why some CRM programs are more successful than others and what capabilities are required to support success. © 2011 JIT Palgrave Macmillan All rights reserved.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/17394