Assessing the Influence Integration of Customer Relationship Management (CRM) on Financial Performance: An Empirical Study on Commercial Jordanian Banks in Amman

Sultan Alshourah

doi:10.7176/jrdm/60-06

Abstract

Purpose : The purpose of this paper is to investigate the relationship between Integration of CRM and various aspects of organization performance (i.e. financial, customer, internal process, and learning and growth) in Jordan banks. Design/methodology/approach: This is a quantitative study, the response came from the managers of 155 Commercial banks and data collected was subjected to correlation and regression analysis in pursuance of the study's stated objectives. Findings: The results of this study suggest that tow dimension of CRM integration (Data Integration and CRM Functionality). CRM Functionality has a positive and significant impact on different perspectives of bank performance. However, Data integration failed to show a significant relationship with perspective of financial performance. Research limitations/implications: An emphasis has been placed on the direct relationship between CRM Functionality and organization performance perspectives as well as, the study concentrated only on bank in Amman. Practical implications: Meaningful implications are made that building an extensive and effective CRM integration in bank firms is crucial to face a high competition and improve performance in Jordan bank sector. Originality/value: The paper addresses CRM integration issues specifically for bank in Jordan. Keywords: CRM, CRM integration, CRM Functionality, Bank performance. DOI : 10.7176/JRDM/60-06 Publication date :October 31 st 2019

Highlights

Customer-Relationship Management (CRM) is generally viewed as a way to integrate sales, marketing and service strategies in order to increase customer benefits and optimize business-customer relationship in the long term (Alshourah, 2016.2018), Dalwooetal., 2018).customer relationship management (CRM) is considered to be one of the most well known management strategies of the past decades
According to Xu et al (2002), CRM covers the entire management approaches, which assist in almost all fields including integrating sales, marketing, field support, customer services and other organizational functions that concern the customer (Dalwooetal., 2018). despite many studies conducted on CRM in various industries in the past 20 years, there is still significant disagreement about its definition and meaning (Buttle, 2004; Adam et al, 2010; Abdellatif, 2011, Al-Weshah et al, 2018) and the framework (Sigala, 2005) for the effective implementation and evaluation of CRM practices and integration
Based on recourse based view (RBV) theory by Barey (1991), the model of competitive advantage and previous research on customer relationship management (CRM) and CRM performance, this study investigated CRM performance and it impact on organizational performance

Summary

Introduction

Customer-Relationship Management (CRM) is generally viewed as a way to integrate sales, marketing and service strategies in order to increase customer benefits and optimize business-customer relationship in the long term (Alshourah, 2016.2018), Dalwooetal., 2018).CRM is considered to be one of the most well known management strategies of the past decades. Despite many studies conducted on CRM in various industries in the past 20 years, there is still significant disagreement about its definition and meaning (Buttle, 2004; Adam et al, 2010; Abdellatif, 2011, Al-Weshah et al, 2018) and the framework (Sigala, 2005) for the effective implementation and evaluation of CRM practices and integration. Such an absence of known related factors (Data integration and CRM Integration) may be linked to why Bank managers have been developing wrong CRM strategies. The need for a more systematic and deliberate study in order to identify and link the success of CRM Integration with Organization performance is crucial

Objectives

Methods

Findings

Discussion

Conclusion