Abstract

http://ssrn.com/abstract=1386484
 
 

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Customer Relationship Management and Firm Performance


Tim Coltman


University of Wollongong - SITCAS

Timothy M. Devinney


University of Leeds - Leeds University Business School (LUBS)

David Midgley


INSEAD - Marketing

April 16, 2009

INSEAD Working Paper No. 2009/18/MKT

Abstract:     
In this paper, we examine the impact of customer relationship management (CRM) on firm performance using a hierarchical construct model. Using the resource-based view (RBV) 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 and organizational capabilities. The results reveal a positive and significant path between a superior CRM capability and firm performance. It is shown that CRM initiatives that jointly emphasize customer intimacy, cost reduction and analytic intelligence outperform those that take a less balanced approach. The results help to explain why CRM programs can be successful and what capabilities are required to support success.

Number of Pages in PDF File: 39

Keywords: Customer Relationship Management, Strategic IT, Capabilities, Performance

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Date posted: April 16, 2009  

Suggested Citation

Coltman, Tim and Devinney, Timothy M. and Midgley, David, Customer Relationship Management and Firm Performance (April 16, 2009). INSEAD Working Paper No. 2009/18/MKT. Available at SSRN: http://ssrn.com/abstract=1386484 or http://dx.doi.org/10.2139/ssrn.1386484

Contact Information

Tim Coltman
University of Wollongong - SITCAS ( email )
+61 (2) 4221 3912 (Phone)
+61 (2) 9313 7279 (Fax)
Timothy M. Devinney
University of Leeds - Leeds University Business School (LUBS) ( email )
Maurice Keyworth Building
Leeds LS2 9JT
United Kingdom
+44 (77) 9302 3516 (Phone)
HOME PAGE: http://leeds.academia.edu/TimothyDevinney
David Midgley (Contact Author)
INSEAD - Marketing ( email )
Boulevard de Constance
Fontainebleau, 77305
France
+33 1 60 71 26 38 (Phone)
+33 1 60 74 55 00 (Fax)
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