The Impact of Customer Relationship Management on Business Performance : The Mediating Effect of Innovation Capability

Abstract

The motivation of this research is to assess the relationship existing between Customer Relationship Management (CRM) and Business Performance (BP) alongside the mediating effect of Innovation Capability (IC) as a crucial study in the telecommunication sector in Ghana. The proposed model was blueprinted based on relationship marketing theory, innovation theory, resource-based view theory and related literature of CRM as an independent variable, Business Performance as an independent variable and Innovation Capability as a mediating variable. Data was collected from 579 various departmental heads, branch managers and the permanent staff of six mobile communication companies in Ghana turned out to be analysed by the use of multiple linear regression analysis and Structural Equation Model (SEM). The analysis of the study was enacted by using STATA and AMOS statistical software package to excerpt the results. The results indicated a statistically positive and significant relationship among CRM, innovation capability and business performance. Also, it was found that innovation capability has a significantly positive and partially mediating effect on CRM constructs and business performance.