Exploring the Impacts of Knowledge Infrastructure, Dynamic Capability, and Customer Relationship Management Ability on Business Value of a Firm

Abstract

The dynamic capability of a firm is the ability to combine, develop, and reconfigure the external as well as internal expertise to respond to the changing business environment in a faster manner. A firm's knowledge infrastructure capability includes structural ability, technological ability, and human resource ability to meet the changing business requirements for the firm to manage its knowledge base. Also, the customer relationship management (CRM) ability of a firm helps it to engage with customers to meet their dynamically changing requirements. Studies show how these capabilities can enhance business value. But there is no study which investigated the combined impacts of a firm's knowledge infrastructure, dynamic capability, and CRM capability on creating business value. Therefore, this study aims to close this gap. With the help of dynamic capability view and resource-based view theory along with literature, we prepared a theoretical model. Later, we validated the model using partial least square structural equation modeling technique with 317 responses from India. The study finds that there is a significant and positive combined impact of a firm's knowledge infrastructure, dynamic capability, and CRM capability on the value creation for the firm, which in turn significantly and positively impacts firm performance.