4 - Customer Knowledge & CRM Performance - IJBM Canada - July2011

4 - Customer Knowledge & CRM Performance - IJBM Canada - July2011

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International Journal of Business and Management Vol. 6, No. 7; July 2011 Published by Canadian Center of Science and Education 181 The Influence of Customer Knowledge on CRM Performance of Malaysian ICT Companies: A Structural Equation Modeling Approach Hadi Nejatian, Ilham Sentosa & Shishi Kumar Piaralal Limkokwing University of Creative Technology 63000 Cyberjaya, Selangor Darul Ehsan, Malaysia E-mail: [email protected] Abdul Manaf Bohari UUM College of Business, Universiti Utara Malaysia 315 Main Office (FPP Building), 06010 UUM Sintok, Kedah, Malaysia Tel: 60-19-424-3648 E-mail: [email protected]; [email protected] Received: October 27, 2010 Accepted: December 16, 2010 doi:10.5539/ijbm.v6n7p181 Abstract The business environment is transforming from product-centric to customer-centric. CRM as a customer-oriented business approach is considered as one of the powerful capabilities in organizations which help them to transform themselves to a customer-centric environment. The objective of the studies to configure the constructs of customer knowledge and CRM performance among 201 ICT companies in Malaysia. This study also examines the influence of customer knowledge as exogenous variable on CRM performance as endogenous variable as hypothesized. Using structural equation modeling (SEM) analysis method, the results confirmed knowledge for customer, knowledge from customer and knowledge about customer as constructs of customer knowledge. Financial, customer, internal process and innovation perspective also confirmed as constructs of CRM performance. The fundamental contribution of this study is determination of the significant interaction effect between customer knowledge and CRM performance constructs in the re-specified model of structural equation modeling (SEM). The utilization of CRM is directly related with increase in customer knowledge, which in turn has positive effect on customer satisfaction. By using knowledge management companies can improve their relationship with their valuable customers to create loyal customers and obtain competitive advantage. Keyword s : Customer knowledge, CRM performance, Structural equation modeling 1. Introduction Today, firms are considering their customers as their most important assets (Croteau and Li, 2003), therefore they are transferring their business strategies from product-centric to customer-centric (Chen and Su, 2006; Kotler, 2003).According to Park and Kim (2003); organizations are focusing more on acquiring and maintaining share of their customers rather than their markets’ and by adopting customer-centric strategies, they demonstrate their insight on the importance of managing relationships with customers (Mithas et al.,2005). Organizations recognize customer knowledge as one of the major contributors of increase in their value and therefore they review their Customer Relationship Management (CRM) initiatives (Croteau and Li, 2003) to use in-depth and integrated customer knowledge for creating collective relationships with their customers (Boulding et al., 2005; Croteau and Li, 2003; Parvatiyar and Sheth, 2001). With arrival of knowledge-economy those organizations
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  • Summer '14
  • Marketing, International Journal of Business and Management, customer knowledge, customer knowledge management, Knowledge Management and CRM

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