An Empirical Study of the Relationship of IT Intensity and Organizational Absorptive Capacity on CRM Performance

Abstract

In recent years, e-business has emerged as a mainstream business practice for engaging in global markets. To gain a competitive advantage in these highly competitive markets, many business organizations have turned to customer relationship management (CRM), an integrated system that draws upon the strengths of IT, to allow them to gain greater insights into their customers’ needs. This study examines the relationship of information technology (IT) intensity and organizational absorptive capacity to CRM practices and performance. Data collected through a survey of Taiwanese financial service companies generally suggest that CRM practices mediate the effects of IT intensity and organizational absorptive capacity on CRM performance. Thus, it behooves organizations that seek to compete in global markets to invest in developing both their IT infrastructure and organizational absorptive capacity, and apply these resources toward building their marketing intelligence and innovating products and services that meet their customers’ needs and expectations.