The mediating effect of marketing capability in the relationship between CRM on business performance in Indonesia and Thailand service industry

Abstract

This study empirically contributes to customer relationship management (CRM) activities on marketing capability and business performance. The authors also investigate the mediating role of marketing capability in enhancing business performance. A quantitative approach was employed by comparing service industry companies in Indonesia and Thailand. The respondents were managers responsible for managing relationships with customers. The sample size is 406 respondents consisting of 207 from Thailand and 199 from Indonesia, who were selected using the purposive sampling method. Results indicated that CRM activities positively affect marketing capabilities and business performance. This study also found that marketing capability played an essential role in mediating the relationship between CRM activities and business performance.