Customer Relationship Management (CRM) Implementation and Firm Performance: Evidence from Service Industry of Bangladesh

Abstract

Customer relationship Management (CRM) has recently become a vital issue for both researchers and professionals as the driving force of the organizational performance. Several studies conducted by both academician and researcher yielded some interesting insights but till date, the extant literature on CRM seems to be very confusing, inconsistent and lack of common conceptualization. There is an urgent need for extending the concept of CRM considering the different domain of it. Thus, to help advance an adhesive body of knowledge on this issue of growing interest among practitioners and academician, this effort aims to investigate through the development and operationalized items of CRM to be implemented in the organization. Based on the resource-based view (RBV) of the firms, the CRM concept can be developed, operationalized and implemented focusing on some basic dimensions of CRM. Different dimensions of CRM that are to be considered to form CRM capabilities incorporate the items like organizing around CRM, incorporating CRM based technology, focusing on the key customer, managing knowledge, business analytic capability and Human analytic capability which are the facilitators to boost business performance. Following the quantitative research methodology, the data were collected through the questionnaire. The survey was administered to the executives who were directly involved in CRM implementation and performance evaluation process in different service firms (banks, insurance, hotel, telecommunication and hospitals) operating in Bangladesh. A multiple regression analysis was used to analyze data and to test hypotheses concerning the relationship between CRM implementation components and form performance. The results support the hypothesized influence on form performance. The study contributes to the literature by developing a six factor model of CRM practices in the service organization. Managers of different industry can use the model to incorporate CRM in their forms. The manager may also be able to allocate the budget and resources to form CRM using this model.