Abstract
Due to the aggressive market competition in hotel sector, it is critical that hotels should adopt new strategy like CRM technology to assist hotel employees, serve customers better and improve organization performance. However, prior studies indicated that the relationship between CRM technology and organization performance is equivocal. These mixed results may be to a lack of understanding of the mechanisms that link CRM technology and organization performance. For this reason, the study used marketing capabilities (planning and implementation) as mediators between CRM technology and organization performance. The study surveyed a sample of 447 hotels firm in Malaysia and used correlation and regression for analyses and testing. The findings suggest that CRM technology is associated with the four dimensions of organization performance (i.e. financial, customer, internal process and learning and growth). In addition the findings reveal that marketing capabilities (planning and implementation) play a mediator role in the relationship between CRM technology and various dimensions of organization performance.
Highlights
With current advance of information technology, a new system can be used to enhance the power of organization toward reduction of internal costs, better relationship with the environment, which may lead to economic profit in the long run
The results demonstrated that only when the Customer Relationship Management (CRM) technology resources are integrated into the marketing capabilities in organization, will the firm be able to create an organizational capability in CRM that is difficult to imitate and replicate, becoming a source of sustainable competitive advantage
This study examined the holistic process by which CRM technology leads to organizational performance, providing a knowledge base for organizations to know what it should do in order to actualize CRM technology performance
Summary
With current advance of information technology, a new system can be used to enhance the power of organization toward reduction of internal costs, better relationship with the environment, which may lead to economic profit in the long run. In this regard, it has been shown that different classes of hotels implement different Customer Relationship Management (CRM) systems (Moriarty-Jones, Rowley & Kupiec-Teahan, 2008). CRM is bound to constantly receive attention for future research in hospitality industry. It was contended that there is research opportunity regarding hospitality industry, and scholars can contribute to theory development in that direction (Yoo, Lee & Bai, 2011; Line & Runyan, 2012)
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