Start Date
10-12-2017 12:00 AM
Description
The ability to manage customer relationships has become a key differentiating factor for companies that compete in a hypercompetitive environment. The purpose of this research is to investigate the mechanisms by which CRM-systems in their distinct architecture contribute to firm profitability. Drawing from prior work in the information systems and accounting literature, we examine the effect of CRM system effectiveness on profitability, considering the mediating roles of firms’ customer knowledge and customer strategy proactiveness. The results of serial mediation analysis based on data from a sample of 138 executives offer novel insights into the mechanism through which CRM systems contribute to performance gains. Our research contributes to the IS and the strategic management literatures by developing a conceptualization for CRM-system effectiveness and by delineating the causal process between CRM-system effectiveness and profitability.
Recommended Citation
Hein, Daniel; Ivens, Björn; Leischnig, Alexander; and Wölfl, Steffen, "From CRM-System-Effectiveness to Profitability" (2017). ICIS 2017 Proceedings. 21.
https://aisel.aisnet.org/icis2017/General/Presentations/21
From CRM-System-Effectiveness to Profitability
The ability to manage customer relationships has become a key differentiating factor for companies that compete in a hypercompetitive environment. The purpose of this research is to investigate the mechanisms by which CRM-systems in their distinct architecture contribute to firm profitability. Drawing from prior work in the information systems and accounting literature, we examine the effect of CRM system effectiveness on profitability, considering the mediating roles of firms’ customer knowledge and customer strategy proactiveness. The results of serial mediation analysis based on data from a sample of 138 executives offer novel insights into the mechanism through which CRM systems contribute to performance gains. Our research contributes to the IS and the strategic management literatures by developing a conceptualization for CRM-system effectiveness and by delineating the causal process between CRM-system effectiveness and profitability.