Customer Relationship Management

Assignment 04
“Journal of High Technology Management Research”

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 CONTENT

TITLE PAGE

I. Introduction 04

II. Literature review 06

III. Research model and Hypotheses 07

IV. Research methodology 10

V. Analysis of data and presenting 12

data
VI. Discussion and conclusion 13

VII. Research’s future lines and 14

limitation

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 Introduction
When we consider the introduction of the Journal of High Technology Management Research we can
see they have indicated lot of things through the introduction as well, but when we summarize those
things we will be easy to critical thinking and soundness about the research paper. So I have
emanated some important points from the lengthy research paper. So we will see following points
that included in research paper are how far it is true or not.

 Relationship Marketing (RM) principles, a developing area of modern day marketing, is the base of
Customer Relationship Management.

As my point of view this statement is true because to understand the customer relationship
management that is essential to realize the principles of relationship marketing such as “know
potential customers”, “show experiences”, “start a dialog to establish trust”, “follow up”, “offer
excellent customer services”, “educate subscribers”, “sell or recommend only quality products”. some
business owners become fail, because of they couldn’t realize the fundamental principles of
relationship marketing.

 Since in the 21st century everyone and everything is getting online, society is highly affected by the
Internet and a new revolution is created and technology is seen as life's indispensable and effective
element.

With the evolution of the technological, internet has become indispensable for everyone. With the
integrated email marketing, marketing automation, etc. there are number of internet technologies that
are directly connected to CRM and one of these is online chat tools. So with the internet and online
CRM become easy and above statement is true.

 Since the world of business has changed its focus from product orientation to customer-orientation,
it is perceived that enhancing relations with customers leads to the profitable and sustainable growth
of revenue.

Product orientation mean consider the needs and wants of consumers. Consumer orientation means
every business activity clusters around the needs and wants of consumes. So with the change of

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business world they realize it is important of Consumer orientation than Product orientation. As well
as launching consumer orientation leads the business to growth and profitable. So I can agree with
above statement.

 A business is enabled by CRM to better understand its customers' implied and the stated needs and
corporations have invested in heavily and have adopted it as a core business strategy.

CRM enables organizations to get closer with their customers in order to serve their needs in better
way. Also to improve customer service, enhance customer satisfaction and thereby maximize
customer loyalty and retention. So we can say CRM enables business to better understand with their
customers. Otherwise they can’t retain their customers. So above statement is true.

 CRM focuses on enhancing, maintaining, and establishing long-term associations with customers
and is based on information collection before decision making.

There are lot of definitions about CRM, as my point of view, the primary focus of CRM is managing
and improving relationships, differentiation, Revenue enhancement, and growing the organization. So
the meaning of above statement is looks same as my point. So I can agree with above statement.

 CRM systems' recent emergence has focused even more on the customer data value as a key
organizational asset.
Customers are the single most valuable asset of every business. They are the number one resource for
invaluable information about products and services and serve as the spring board for new ideas and
concepts. And CRM system also focus about these point. So as my point of view, this statement is
also a true.
 CRM operation, by which the implementation and development of more effective and efficient
strategies focused on the customer are enabled, leads to firm's success. They use market effectiveness,
efficiency (profitability, and customer satisfaction to measure the performance of an organization.
The primary objective is every organization is to growth and development of the organization. With a
solid CRM strategy in place, organization can collect detailed, in depth customer data and use it to
streamline organization communication and overall business practices. This data will empower all
parts of the company, customer service, sales, marketing, and other departments and better serve
customers. So CRM strategies also help to achieve primary objectives of the organization. So we can
agree above statement also.

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 Literature review
According to Literature review it is true that in order to have long-term profitability and to
compete in nowadays business world, organizations should both take customer attraction into
consideration and gain the persevering requisite which is customers' faith and also old customers
should be kept. And the most fundamental and profitable strategy for preserving and keeping
customers is the CRM.

We can agree the CRM has been paid a lot of attention in different fields of information
technology and marketing, in the recent years, communicating with customers is considered as
profitable trading for the organizations and customers have important possession in
organizations' view. They have investigated the effect of social CRM adoption on firm
performance in small and medium enterprises (SMEs) context. And their study confirms that
social CRM adoption and SMEs performance are significantly related to each other. They have
shown that quality of service and CRM capability of the organization are very important
mediating variables between performances and customer orientation. They have shown that
organizational commitment's crucial role acts as a relevant mediator and brings the most
influence on CRM success. As well as performance of customer relationship is positively
affected by the quality of customer information, which as a result improves the performance of
firms. They have found that the key success factors for CRM are organizational variables (human
resources, organizational structure, top-management support, and strategy). And to effectively
use the technology of CRM, management should organize a management system and an
organizational culture which focus on the customer.

It was revealed that companies with more CRM resources deployment have better financial
performance and process capabilities. So we can say Literature review of Journal of High
Technology Management Research is true statement.

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 Research Model and hypothesis
Research Model
research model is a pictorial or graphic representation of key concepts. it shows the relationship
between various types of variables e.g. independent , dependent, moderating, mediating variables
etc. Research Model aims identifying the factored which affect the increase of performance of
the organization. The basis of the model is that the

 Customer orientation
 Organization capability
 Customer knowledge management
 Organization performance
 Information technology

Customer orientation and hypothesized

■ Customer orientation

Customer orientation is a business philosophy that puts the needs of the customer over the needs
of the business. It's a way of thinking that aligns our business goals with your customers'goals.

■ H1. CRM practices have a significant and positive impact on customer orientation.

the researcher hypothesized that it may be due to less customer orientation and thus being less
relationship oriented. The hypothesis of the study is that there is a relationship between customer
orientation and relationship marketing. The researcher has used both primary and secondary data
in the current study. The data collection method used is a mixed method. The qualitative analysis
was conducted through the case study approach where quantitative analysis.

Organizational capability and hypothesized

■ Organizational capability

An organizational capability is the means by which an organization brings together its people
and other resources to respond to changes in the business environment and deliver value to its

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customers and stakeholders. Organizational capabilities are the unique combination of skills,
processes, technologies, and human abilities that differentiate a company. They are created
internally and are thus difficult for others to replicate. The organizational capabilities are the
criteria used for organization design decisions.

■ H2. CRM practices have a significant and positive impact on organization Capability.

Many organizations are already using CRM systems. When a company uses CRM, it develops
different organizational capabilities some of which lead to innovation. Whilst there are some
studies that already analyze the creation of innovation capabilities resulting from the usage of a
CRM system, how this is achieved has not been understood.

Information technology and hypothesized

■ Information technology

Information technology is the use of computers to store, retrieve, transmit, and manipulate data
or information. IT is typically used within the context of business operations as opposed to
personal or entertainment technologies. IT is considered to be a subset of information and
communications technology.

■ H3. CRM practices have a significant and positive impact on information technology.

Information Technology and CRM have three key elements, namely Customer Touch Points,
Applications, and Data Stores. Data Mining is where an organization evaluates large Data Stores
for patterns, or relationships between groups or individuals. information technology from
different aspects in order to create and manage direct relationship between organizations and
their customers. A framework is presented to develop required infrastructure for effective and
sustainable relationship between customer and organization.

Customer knowledge management and hypothesized.

■ Customer knowledge management

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Customer knowledge management is necessary for firms in order to benefit from customer
engagement which is referred as active involvement in innovative product or service
development. Providing customized product and enhancing quality of service and product
without successful CKM is not possible. However, organizations face major challenges
concerning CKM. In this study, organizational, human and technological challenges of CKM
were investigated. Then, the CKM development phases.

■ H4. CRM practices have a significant and positive impact on Customer knowledge
management.

CRM has become the key software technology tool for leading companies to track and analyse
customer-related information, trusting that their customer relationships can be greatly improved
through the use of information technology and technology management solutions. The use of
CRM to adapt the productive efforts of the companies to the needs and particularities of the
client is therefore key based on the principle that the knowledge of the needs and expectations of
the clients is the basis of efficient knowledge management.

Organization performance and hypothesized

■ Organization performance

In an attempt to measure the impact of CRM on the company's overall business performance, the
first step should be the initial search for existing performance studies targeted at companies that
use CRM.

■ H5. CRM practices have a significant and positive impact on Organization performance.

CRM was conceived and enhanced during its development, with the main, global objective of
attracting and retaining economically valuable clients, for which its working power lies in
identifying and separating less profitable customers, which positions CRM in line with modern
customer-centric business management theory. The originality of this work is that it not only
tests the hypothesis that CRM has an impact on firm performance, but that through this
hypothesis it links firm performance to the degree of introduction of CRM or CRM Practices.

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 Research Methodology
Customer relationship management is very important to organization. Success of CRM can
enhance the organization performance. Therefore, it is very important to examine CRM factors
and it influence on organization. This research brings out that examine here.

 The researcher discusses about customer relationship management for organization

performance. But in my point of view not only customer relationship management, but also
service quality and other factors are there for organization success and performance.
(Research example)

Measure

A questionnaire is designed to measure the models elements. These questionnaires done by who
are expert in CRM.

 In my point of view when they prepare the questionnaire they have to consider not only
academics and practitioners but also employee and customer. Because they also important
part of customer relationship management process. (Research example)

The questionnaires distributed among the statistical sample and employee were provided with
questionnaires. Statistical analyze done through the SPSS and SMART-PLS software package. A
five-point scale used in Questionnaire.

 It is very important to distribute that questionnaire within the company, because it would be a
more advantage in future to that company, because they can analysis the CRM in company
according to research examine.

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  The statistical analysis done through the SPSS and SMART- PLS packages only. But in
my point of view, the researcher can use STATA and e-views also for primary data
researches
 Here the researcher has used five point scales as,
1. Strongly Agree
2. Agree
3. Neutral
4. Dis agree
5. Strongly disagree

These five-point scale produce strong output rather than three-point scale
(Agree/Neutral/disagree)

The PLS avoids many of the restrictive assumptions underlying covariance- based structural
equation medaling techniques (SEM) such as large sample size and multivariate normality.

 Here researcher has analyzed data through the PLS package rather than the SPSS
package.it is reasonable analysis, because PLS avoids many restrictive assumptions. But
SPSS also provide logical output.

Data collection and sample

Population – 260

Sample -150

 The company population was 260 persons and the researcher’s sample was 150 cases (155-5
cases return) actually according to the population the sample is more reasonable and more
logical. Because the sample covers 57% from the population its gives more accurate output.

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Analysis of Data and Presenting Results.
Evaluating the structural models and measurement with multi-item latent constructs is possible
by PLS (Sun & Mouakket, 2015).

Analyzing the empirical data was done in two stages because the Smart- PLS software 2.0 is
used to perform the analysis of PLS.

Convergent validity is measured by variance extracted (AVE) and composite reliability

examination (CR) and the average from the measurements.

In our study, (AVE) 0.5 and the second validity measure is the discriminant validity.

It is calculated by the square root of AVE numbers of the corresponding constructs. These values
should be larger than values of correlation among all the latent variables.

Goodness of fit of the model PLS-SEM contains only one measure of the goodness of fit.

According to Table 3, this studies was 0.67 which is considered as large which in turn refers to
the model validity adequacy.

Maximizing the variance, which exogenous variables in the endogenous variable explain it, is the
main goal of PLS-SEM.0.67 to 0.19 is R" values' acceptance range (Chin, 1998). Overall, 0.65%
in performance of the organization and 0.89% of the variance in the success of CRM is explained
by the model.

By use of the technique of bootstrapping, with 600 sub- achieved by the research model, the
algorithm of bootstrapping repeats itself. The hypothesis testing was done based on the re-
spectate path coefficients’ signs.

After establishing and testing the construct validity and reliability, examining the proposed
hypotheses, by running Bootstrapping and Smart PLSS Algorithm, is the task of next stage.
Corresponds to a theory. If the dependent variable is strongly influenced by a predictor latent
variable, then the path coefficient will be high. By analyzing the significance of the t value for
every path coefficient, the significance of the path coefficients (B1 to B5) was checked.

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 Discussion and Conclusion.
Based on the firm's resource-based theory view, the success of CRM is considered among the
most important resources that organizations can enhance their performance with the help of
success of CRM.

Through questionnaire surveys from the East Azerbaijan Tax Administration's employees in
Iran, this study's data was gathered.

Test the hypothesized model was done through PLS-SEM.

It is expected to see organization's performance and good success of CRM positive relationship
from this study.

This research's theoretical implications are as follow.

The statistical results showed that the five postulated hypotheses were supported.

The effect of the success of CRM in the performance of firms also proved to be positive and
significant (β = 0.80, t = 76.04, p < 0.001).H4 and H5 are supported accordingly.

This paper's contributions are described as follow.

In conclusion, it is hoped that by improving the understanding of the CRM successful

implementation, this research contributes to both practitioners of academy and business.

Also, with regards to the management implications of this study, we can affirm that the
interrelationship between customer orientation and organizational capability, information
technology, and customer knowledge management has been recognized as one of the key factors
for CRM success.

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Research’s Future Lines and Limitations.
There are some limitations.

 We can mention the use of cross-sectional data which hinders the examination of
development in time of the phenomenon under analysis.
 Next, despite the similarity of the sample which was used in the sectors' previous studies,
the size of the sample is not large.
 This problem can be solved by using other methods and asking more people in the same
organization (financial data) for measurement of CRM success.
 The fourth problem is the focus of this study which is on Tax Administration's staffs of
East Azerbaijan-Iran, so generalizing the achieved results to other countries or other
activity sectors is not possible.
 Explanatory variables which are new can also be added to the model by future research.

END.

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