The Influence of Customer Knowledge on CRM Performance of Malaysian ICT Companies: A Structural Equation Modeling Approach

Hadi Nejatian, Ilham Sentosa, Shishi Kumar Piaralal, Abdul Manaf Bohari

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.


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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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