39 Pages Posted: 16 Apr 2009
Date Written: April 16, 2009
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.
Keywords: Customer Relationship Management, Strategic IT, Capabilities, Performance
Suggested Citation: 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: https://ssrn.com/abstract=1386484 or http://dx.doi.org/10.2139/ssrn.1386484