Abstract
Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.
Highlights
Customer Relationship Management (CRM) is an enterprise approach that understands and impacts customer behaviour through effective interactions with them for the purpose of enhancing customer attraction, retention, loyalty and, customer profitability [1,2,3]
This study aims to examine the joint influence of CRM dimensions and relational capital on SEMs’ performance in Yemen
Based on the suggestion of Fornell and Larcker [84], this study conducted an assessment of the discriminant validity with the help of AVE; the correlations among the latent constructs were compared with the square roots of AVE [84]
Summary
CRM is an enterprise approach that understands and impacts customer behaviour through effective interactions with them for the purpose of enhancing customer attraction, retention, loyalty and, customer profitability [1,2,3]. CRM is important for top management to deliver the vision and CRM strategy to their employees [4,5]. This interaction between the organization and its employees is important to ensure the CRM process can be successful in achieving the objectives and enhancing organizational performance [1,6]. Several quantitative studies on CRM have explored its function and influence in specific sectors in developed countries It remains to examine and confirm the applicability of the concept of CRM in manufacturing industries and in developing countries [9,10]
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