Customer relationship management implementation: An investigation of a scale's generalizability and its relationship with business performance in a developing country context

Abstract

Purpose

The purpose of this paper is to examine the generalizability of the customer relationship management (CRM) scale originally developed by Sin et al. as well as to investigate the strength of linkages between CRM implementation components and business performance in Jordan's financial service organizations (FSOs).

Design/methodology/approach

Using a quantitative methodology, data were collected through a survey that included FSOs that are operating in the Jordanian market. The original adopted CRM scale was administered to 12 banks and 18 insurance companies that were found to be implementing CRM. An overall number of 320 questionnaires were sent to these banks and insurance companies' top management members who were directly involved in CRM implementation and performance assessments. Exploratory and confirmatory factor analyses were used to assess the generalizability of the CRM scale developed by Sin et al. Structural path model analysis was also used to test the research hypotheses concerning the relationship between CRM implementation and business performance.

Findings

The results suggest that the CRM implementation scale originally developed by Sin et al. does generalize to a Jordanian FSOs context. The findings indicate that there is a positive and significant relationship between CRM implementation components and FSOs' business performance comprised of financial and marketing performances. CRM organization and technology‐based CRM are the strongest predictors of variations in FSOs' business performance.

Originality/value

This paper is the first systematic research project in Jordan that isdevoted to investigating the scale and components of CRM implementation in Jordan and in the Middle East.

Citation

Akroush, M.N., Dahiyat, S.E., Gharaibeh, H.S. and Abu‐Lail, B.N. (2011), "Customer relationship management implementation: An investigation of a scale's generalizability and its relationship with business performance in a developing country context", International Journal of Commerce and Management, Vol. 21 No. 2, pp. 158-190. https://doi.org/10.1108/10569211111144355