How Do Competitive Environments Moderate CRM Value?

Decision Support Systems, 2013

43 Pages Posted: 20 Sep 2008 Last revised: 7 Jul 2015

See all articles by Alfred Z. Liu

Alfred Z. Liu

University at Albany, SUNY

Hongju Liu

University of Connecticut

Sean Xu

Hong Kong University of Science & Technology (HKUST) - HKUST School of Business and Management

Date Written: November 11, 2012

Abstract

Customer relationship management (CRM) plays a critical role in e-business. In this study we seek to quantify the value of Internet-based CRM applications, and the purpose of our research is to identify the mechanisms underlying CRM value creation. Using a unique dataset collected from vendor archives of CRM implementations, we find an increase in firm value associated with CRM applications. This value implication, however, is attributable to integration of CRM with existing enterprise resource planning (ERP) applications, instead of installing CRM functional modules per se. Further, we find that the integration contributes more value in markets featuring higher product differentiation or lower entry costs. Together these findings shed light on the mechanisms through which CRM applications increase firm value in specific competitive environments.

Keywords: E-business, customer relationship management, competitive environments, business value, enterprise resource planning, integration, product differentiation, entry costs

Suggested Citation

Liu, Zhu and Liu, Hongju and Xu, Sean, How Do Competitive Environments Moderate CRM Value? (November 11, 2012). Decision Support Systems, 2013. Available at SSRN: https://ssrn.com/abstract=1270791 or http://dx.doi.org/10.2139/ssrn.1270791

Zhu Liu

University at Albany, SUNY ( email )

Albany, NY 12222
United States

Hongju Liu

University of Connecticut ( email )

2100 Hillside Rd, U-1041
Storrs, CT 06269-1063
United States

Sean Xu (Contact Author)

Hong Kong University of Science & Technology (HKUST) - HKUST School of Business and Management ( email )

Clear Water Bay
Kowloon
Hong Kong

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