An empirical investigation of the economic payoffs of e-business and CRM innovations (original) (raw)

The Impact of E-CRM on Organisational and Individual Behavior

International Journal of E-Business Research, 2007

This article examines how electronic customer relationship management (e-CRM) has affected both organizational and individual behavior in a leading Canadian bank. The innovative and customer-driven culture of this bank pushed it toward early adoption of e-CRM technology. The findings emphasize the role played by many strategic and organizational dimensions in the success of e-CRM implementation. In fact, to make e-CRM efforts pay off, new business pro-cesses are required to achieve more effective and closer interactions with customers. The shift toward customer orientation needs to be supported by a shift in organizational objectives and processes. The results indicate that employees’ individual behavior successfully changed from a transactional to a relational perspective and that training and coaching ensured a successful integration of e-CRM technology. Nevertheless, the employee reward and evaluation system, which should have been changed to leverage CRM impact, has surprisingly...

Putting market-facing technology to work: Organizational drivers of CRM performance

Marketing Letters, 2010

A large proportion of firms that adopt customer relationship management (CRM) technology find it challenging to integrate CRM technology into their core marketing processes and utilize CRM strategically to appreciably improve their performance. The authors conceptualize a model to understand the drivers of superior CRM performance after CRM technology has been adopted by a firm and examine strategic utilization of CRM technology as driven by user acceptance and proficiency in the form of employee buy-in and expertise. Top management championship practices, employee information technology (IT) skills, and CRM knowledge are identified and examined as key building blocks toward strategic utilization. The empirical test of the conceptual model is based on a mail survey of North American firms that have adopted information technology-based CRM systems. The results, based on random effects model, show that strategic utilization of CRM technology leads to higher performance when there is an emphasis on using it to manage business-to-business rather than business-to-consumer relationships, user expertise (but not buy-in) impacts CRM performance through strategic utilization, and top management championship practices, CRM knowledge, and employee IT skills impact strategic utilization through buy-in and expertise.

How Implementation of E-CRM May Enhance an Organization’s Internal and External Success

2012

Due to recent advancements in information technology and communication, Electronic Customer Relationship Management has drawn the attention of many firms to achieve competitive advantages. Despite the increasing importance given to understanding their customers better, organizations find inconsistencies between information technology and the existing marketing strategies, when they come to decide upon implementing e-CRM, as well as lack of theoretical backgrounds for developing success measures in this domain. Therefore, this study deals with describing a model for successful e-CRM, using variables such as customer information quality, technology system, efficiency, customer satisfaction, and profitability. These constructs cover most of variables and concepts presented yet in theories of successful information systems and views about customer satisfaction. Ample empirical evidence is gained through this research from analyzing the outcomes of 309 questionnaires distributed to emplo...

The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations

Journal of Operations Management, 2007

This paper documents the effect of investments in Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM) systems on a firm's long-term stock price performance and profitability measures such as return on assets and return on sales. The results are based on a sample of 186 announcements of ERP implementations, 140 SCM implementations, and 80 CRM implementations. Our analysis of the financial benefits of these implementations yields mixed results. In the case of ERP systems, we observe some evidence of improvements in profitability but not in stock returns. The results for improvements in profitability are stronger in the case of early adopters of ERP systems. On average, adopters of SCM system experience positive stock returns as well as improvements in profitability. There is no evidence of improvements in stock returns or profitability for firms that have invested in CRM. Although our results are not uniformly positive across the different enterprise systems (ES), they are encouraging in the sense that despite the high implementation costs, we do not find persistent evidence of negative performance associated with ES investments. This should help alleviate the concerns that some have expressed about the viability of ES given the highly publicized implementation problems at some firms.

E-Business Strategy and Firm Performance

Concepts, Methodologies, Tools and Applications (4 Volumes)

Electronic business (e-business) has been popularly lauded as “new economy.” As a result, firms are prompted to invest heavily in e-business related activities such as supplier/procurement and online exchanges. Whether the investments have actually paid off for the firms remain largely unknown. Using the data on the top 100 e-business leaders compiled by InternetWeek, this chapter compares the leaders with their comparable counterparts in terms of profitability and cost in both short-run and long-run. The authors find that while the leaders have superior performance based on most of the profitability measurements, such superiority is not observed when cost measurements are used. Based on the findings, this chapter offers managerial implications accordingly.

E-BUSINESS AS A SOURCE OF COMPETITIVE ADVANTAGE

The article presents the analysis of the relationship between e-business benefits and competitive advantage. Different approaches of authors towards e-business and competitive advantages have been analyzed and summed up, the analysis of the e-business impact on usual business processes has been outlined, resource-based as well as M. Porter's approaches to competitive advantage were compared. The model relating positive impact of e-business on nine different business processes and competitive advantage was developed. The model may be integrated into broader research framework constructed for the analysis of e-business development and its role in gaining competitive advantage in any industry. Although many studies confirmed that e-business solutions have a positive impact on various business processes e-business benefits do not necessarily lead to the increased profits and/or sales, thus the association of e-business value with the competitive advantage should be made with caution. The type of the article: Theoretical article.