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Does Customer Relationship Management Activity Affect Firm Performance?

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  • Harmeen Soch

    (Harmeen Soch (Ph.D.) is Senior Lecturer of Marketing, Department of Commerce & Business Management, Guru Nanak Dev University, Amritsar, India. E-mail: meenu_soch@yahoo.com)

  • H.S. Sandhu

    (H.S. Sandhu (Ph.D.) is Professor of Marketing, Department of Commerce & Business Management, Guru Nanak Dev University, Amritsar, India. E-mail: sandhu_hs12@yahoo.com)

Abstract

The focus of this study is to find out the impact of Customer Relationship Management (CRM) on the financial performance of firms in India. The study identifies four CRM constructs – customer need sensing, communication, intermediaries, and the internal environment of firms. A CRM scale is developed, refined and validated and confirmatory factor analysis is used to examine the model fit. Firm data on profitability and growth is used as performance indicators for estimating the regression model. Using a large sample of 171 firms from eight different industry types, results suggest that there is a positive influence of CRM on firm performance but that this impact is insignificant.

Suggested Citation

  • Harmeen Soch & H.S. Sandhu, 2008. "Does Customer Relationship Management Activity Affect Firm Performance?," Global Business Review, International Management Institute, vol. 9(2), pages 189-206, August.
    • Handle: RePEc:sae:globus:v:9:y:2008:i:2:p:189-206
    DOI: 10.1177/097215090800900202
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    References listed on IDEAS

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    Cited by:

    1. Abdul Alem Mohammed & Basri B. Rashid & Shaharuddin B. Tahir, 2017. "Customer relationship management and hotel performance: the mediating influence of marketing capabilities—evidence from the Malaysian hotel industry," Information Technology & Tourism, Springer, vol. 17(3), pages 335-361, September.
    2. Shafat Maqbool, 2019. "Does corporate social responsibility lead to superior financial performance? Evidence from BSE 100 index," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(3), pages 219-231, September.

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