The structuration theory on CRM diffusion: IT governance issues

Abstract

This research investigates the role of IT governance in CRM diffusion, based on the structuration theory of technology assimilation and the literature on IT governance. We conceptualize decision execution mechanisms of IT governance as including two dimensions — vertical advocacy from top management and horizontal coordination between business and IT managers, which are assumed to facilitate CRM use and value creation. Further, we investigate the moderation effect of decision making structures. We analyze a dataset of 133 Chinese firms in various industries. We find that: (1) Both vertical advocacy and horizontal coordination significantly contribute to the three stages of CRM diffusion, especially CRM use and business process performance; (2) decision execution mechanisms are more effective in facilitating CRM diffusion under a centralized decision making structure where top management makes decisions on CRM initiatives. In particular, vertical advocacy has a greater effect under such a centralized structure, while horizontal coordination has a greater effect under a decentralized structure; (3) CRM use improves firm performance mainly through creating operational and strategic benefits in customer-oriented business processes.