Impact of CRM resources and capabilities on business performance in the mobile telecommunications industry: A resource-based view

Abstract

Organisations are becoming increasingly aware of the necessity to maintain sustainable long-term relationships with customers in order to survive in the global competition. They are also aware that the changing needs and purchase patterns of customers requires them to choose differentiated customer-oriented marketing strategies so as to acquire a competitive advantage over their rivals and enhance their business performance. Customer Relationship Management (CRM) enables organisations to create and manage relationships with customers more effectively through a detailed and accurate analysis of consumer data using various information technologies. Several CRM theories like the resource-based view (RBV), and theories of institutions, cultures, entrepreneurship, and dynamic theory can help a company gain over competitors. If implemented appropriately, the CRM approach can help a firm with managerial efficiency, cost reduction, enhanced customer services, and increased sales and profits. The present study aims to develop a novel and comprehensive model to measure the effect of CRM resources over CRM capabilities and the effects on business performance. The present study covers infrastructural and cultural CRM resources with CRM capabilities. The results are based on information collected from three Kuwaiti mobile network operators using a questionnaire in adherence with ethical guidelines. The study measures business performance comprehensively from financial and marketing perspectives using regression analysis to determine if there is a mediation role between two variables. The results show that CRM infrastructural resources positively and directly affect CRM capabilities. However, the effect of customer and learning orientation cultures on CRM capabilities is considerably stronger than that of infrastructural resources. The study also reveals that CRM capabilities significantly and positively affect business performance from marketing and financial standpoints although the effect on marketing performance was stronger.