Assessing the influence of customer relationship management (CRM) dimensions on organization performance

Abstract

Purpose The purpose of this paper is to investigate the relationship between CRM dimensions (i.e. customer orientation, CRM organization, knowledge management, and technology based CRM) and various aspects of organization performance (i.e. financial, customer, internal process, and learning and growth) in Malaysian hotels. Design/methodology/approach This is a quantitative study, the response came from the managers of 152 Malaysian hotels (3 to 5 star) and data collected was subjected to correlation and regression analysis in pursuance of the study's stated objectives. Findings The results of this study suggest that all dimensions of CRM (i.e. customer orientation, CRM organization, knowledge management and technology based CRM) have a positive and significant impact on different perspectives of hotel performance. However, CRM technology failed to show a significant relationship with learning and growth perspective of hotel performance. Research limitations/implications An emphasis has been placed on the direct relationship between CRM dimensions and organization performance perspectives as well as, the study concentrated only on 3 to 5 star hotels. Practical implications Meaningful implications are made that building an extensive and effective CRM dimensions in hotel firms is crucial to face a high competition and improve performance in Malaysia hotel sector. Originality/value The paper addresses CRM dimensions issues specifically for hotels in Malaysia.

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