Information Technology & Tourism

, Volume 17, Issue 3, pp 335–361 | Cite as

Customer relationship management and hotel performance: the mediating influence of marketing capabilities—evidence from the Malaysian hotel industry

  • Abdul Alem Mohammed
  • Basri B. Rashid
  • Shaharuddin B. Tahir
Original Research

Abstract

The aim of this study is to assess the influence of customer relationship management (CRM) on marketing capabilities (planning and implementation) and organizational performance, through an analysis of the hotel industry in Malaysia. The study uses partial least squares to examine the mediating influence of marketing capabilities on the association between CRM and hotel performance. A survey of hotel managers was conducted, and a total of 152 usable questionnaires were obtained. The results enrich the literature by showing a positive relationship between CRM and hotel performance; they also indicate that marketing planning and implementation play a mediating role in the relationship between CRM and hotel performance. From the practical perspective, by understanding the relationship among the constructs in the research model, hotel managers could maximize use of their internal resources to improve organizational performance.

Keywords

CRM Hotel performance Marketing capabilities Partial least squares 

References

  1. Abdullateef AO (2011) The impact of customer relationship management on caller satisfaction in customer contact centers: Evidence from Malaysia. Unpublished PhD thesis, UUM, MalaysiaGoogle Scholar
  2. Abdullateef AO, Mokhtar SS, Yusoff RZ (2010) The impact of CRM dimensions on call center performance. Int J Comput Sci Netw Secur 10(12):184–195Google Scholar
  3. Akroush MN, Dahiyat SE, Gharaibeh HS, Abu-Lail BN (2011) Customer relationship management implementation: an investigation of a scale’s generalizability and its relationship with business performance in a developing country context. Int J Commerce Manag 21(2):158–190. doi: 10.1108/10569211111144355 CrossRefGoogle Scholar
  4. Anderson RE, Swaminathan S (2011) Customer satisfaction and loyalty in e- markets: a PLS path modeling approach. J Mark Theory Pract 19(2):221–234. doi: 10.2753/MTP1069-6679190207 CrossRefGoogle Scholar
  5. Attharangsun N, Ussahawanitchakit P (2008) The antecedents and consequences of CRM effectiveness in health service industry of Thailand. Rev Bus Res 8(4):1–16Google Scholar
  6. Awang KW, Ishak NK, Mohd Radzi S, Taha AZ (2008) Environmental variables and performance: evidence from the hotel industry in Malaysia. Int J Econ Manag 2(1):59–79Google Scholar
  7. Azizi S, Movahed SA, Khah MH (2009) The effect of marketing strategy and marketing capability on business performance. Case study: Iran’s medical equipment sector. J Med Mark Device Diagn Pharm Mark 9(4):309–317. doi: 10.1057/jmm.2009.33 CrossRefGoogle Scholar
  8. Bagozzi RP, Yi Y (1988) On the evaluation of structural equation models. J Acad Mark Sci 16(1):74–94. doi: 10.1007/BF02723327 CrossRefGoogle Scholar
  9. Baran RJ, Galka RJ, Strunk PD (2008) Principles of customer relationship management. Thomson, USAGoogle Scholar
  10. Barney JB (1991) Firm resources and sustained competitive advantage. J Manag 17(1):99–120. doi: 10.1177/014920639101700108 Google Scholar
  11. Becker JU, Greve G, Albers S (2009) The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention. Int J Res Mark 26(3):207–215. doi: 10.1016/j.ijresmar.2009.03.006 CrossRefGoogle Scholar
  12. Boulding W, Staelin R, Ehret M, Johnston WJ (2005) A customer relationship management roadmap: what is known, potential pitfalls, and where to go. J Mark 69(4):155–166. doi: 10.1509/jmkg.2005.69.4.155 CrossRefGoogle Scholar
  13. Business Monitor International (2011) Malaysia Tourism Report, Q2. LondonGoogle Scholar
  14. Castellanos-Verdugo M, Oviedo-García M, Roldán JL, Veerapermal N (2009) The employee-customer relationship quality: antecedents and consequences in the hotel industry. Int J Contemp Hosp Manag 21(3):251–274. doi: 10.1108/09596110910948288 CrossRefGoogle Scholar
  15. Chang TL (1996) Cultivating global experience curve advantage on technology and marketing capabilities. Int Mark Rev 13(6):22–42. doi: 10.1108/02651339610151908 CrossRefGoogle Scholar
  16. Chang W, Park JE, Chaiy S (2010) How does CRM technology transform into organizational performance? A mediating role of marketing capability. J Bus Res 63(8):849–855. doi: 10.1016/j.jbusres.2009.07.003 CrossRefGoogle Scholar
  17. Chen IJ, Popovich K (2003) Understanding customer relationship management (CRM): people, process and technology. Bus Process Manag J 9(5):672–688. doi: 10.1108/14637150310496758 CrossRefGoogle Scholar
  18. Chin WW (1998a) Issues and opinion on structural equation modeling. MIS Q 22(1):1–8CrossRefGoogle Scholar
  19. Chin WW (1998b) The partial least squares approach for structural equation modeling. In: Marcoulides GA (ed) Modern methods for business research. Lawrence Erlbaum Associates, London, pp 295–336Google Scholar
  20. Chin WW (2010) How to write up and report PLS analyses. In: Esposito V et al (eds) Handbook of partial least squares. Springer, New York, pp 655–688CrossRefGoogle Scholar
  21. Cizmar S, Weber S (2000) Marketing effectiveness of the hotel industry in Croatia. Int J Hosp Manag 19(3):227–240. doi: 10.1016/S0278-4319(00)00020-7 CrossRefGoogle Scholar
  22. Daghfous A, Barkhi R (2009) The strategic management of information technology in UAE hotels: an exploratory study of TQM, SCM, and CRM implementations. Technovation 29(9):588–595. doi: 10.1016/j.technovation.2009.05.007 CrossRefGoogle Scholar
  23. Day GS (1994) The capabilities of market-driven organizations. J Mark 58:37–52. doi: 10.2307/1251915 CrossRefGoogle Scholar
  24. Dev CS, Olsen MD (2000) Marketing challenges for the next decade. Cornell Hotel Restaurant Admin Q 41(1):41–47CrossRefGoogle Scholar
  25. Dimitriadis S, Stevens E (2008) Integrated customer relationship management for service activities: an internal/external gap model. Manag Service Qual 18(5):496–511. doi: 10.1108/09604520810898857 CrossRefGoogle Scholar
  26. Dutu C, Hălmăjan H (2011) The effect of organizational readiness on CRM and business performance. Int J Comput 1(5):106–114Google Scholar
  27. Eisenhardt KM, Martin JA (2000) Dynamic capabilities: what are they? Strategic Manag J 21(10–11):1105–1121CrossRefGoogle Scholar
  28. Fornell C, Bookstein FL (1982) Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. J Mark Res 19(4):440–452. doi: 10.2307/3151718 CrossRefGoogle Scholar
  29. Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18(1):39–50. doi: 10.2307/3150979 CrossRefGoogle Scholar
  30. Garrido-Moreno A, Padilla-Meléndez A (2011) Analyzing the impact of knowledge management on CRM success: the mediating effects of organizational factors. Int J Inf Manag 31(5):437–444. doi: 10.1016/j.ijinfomgt.2011.01.002 CrossRefGoogle Scholar
  31. Gartner Group (2003) CRM success is in strategy and implementation, not software. http://www.gartner.com
  32. Goldenberg BJ (2008) CRM in real time: empowering customer relationships. Information Today Inc, New JerseyGoogle Scholar
  33. Grant RM (1991) The resource-based theory of competitive advantage: Implications for strategy formulation. Caledonia Manag Rev 33(3):114–135. doi: 10.2307/41166664 CrossRefGoogle Scholar
  34. Gustafsson A, Johnson MD, Roos I (2005) The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. J Mark 69(4):210–218. doi: 10.1509/jmkg.2005.69.4.210 CrossRefGoogle Scholar
  35. Hair JF, Ringle CM, Sarstedt M (2013) Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Plan 46(1–2):1–12. doi: 10.1016/j.lrp.2013.01.001 CrossRefGoogle Scholar
  36. Hair JF Jr, Hult GTM, Ringle C, Sarstedt M (2014) A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications, Thousand OaksGoogle Scholar
  37. Hamid H (2009) Toward unfolding CRM implementation in Pakistan: a case study. In: 17th European conference on information systems, Islamabad. http://is2.lse.ac.uk/asp/aspecis/20090249.pdf. Retrieved 28 June 2011
  38. Hayes AF (2013) Introduction to mediation, moderation, and conditional process analysis: a regression-based approach. Guilford PressGoogle Scholar
  39. Hayes AF, Preacher KJ (2014) Statistical mediation analysis with a multi categorical independent variable. Br J Math Stat Psychol 67(3):451–470. doi: 10.1111/bmsp.12028 CrossRefGoogle Scholar
  40. Hendricks KB, Singhal VR, Stratman JK (2007) The impact of enterprise systems on corporate performance: a study of ERP, SCM, and CRM system implementations. J Oper Manag 25(1):65–82. doi: 10.1016/j.jom.2006.02.002 CrossRefGoogle Scholar
  41. Henseler J, Ringle CM, Sinkovics RR (2009) The use of partial least squares path modeling in international marketing. Adv Int Mark 12(1):277–320Google Scholar
  42. Hsin Chang H, Ku P (2009) Implementation of relationship quality for CRM performance: acquisition of BPR and organizational learning. Total Qual Manag 20(3):327–348. doi: 10.1080/14783360902719758 CrossRefGoogle Scholar
  43. Hulland J (1999) Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Manag J 20(2):195–204. http://www.jstor.org/stable/3094025
  44. Iacobucci D, Saldanha N, Deng X (2007) Meditation on mediation: evidence that structural equations models perform better than regressions a meditation on mediation. J Consum Psychol 17(2):140–154CrossRefGoogle Scholar
  45. Jusoh R (2008) Environmental uncertainty, performance, and the mediating role of balanced scorecard measures use: evidence from Malaysia. Int Rev Bus Res Papers 4(2):116–135Google Scholar
  46. Kaplan RS, Norton DP (1992) The balanced scorecard: measures that drive performance. Harvard Business Review, January–February, pp 71–79Google Scholar
  47. Kaplan RS, Norton DP (2004) Measuring the strategic readiness of intangible assets. Harvard Business Review 82(2):52–63Google Scholar
  48. Kasim A, Minai B (2009) Linking CRM strategy, customer performance measures and performance in the hotel industry. Int J Econ Manag 3(2):297–316. http://econ.upm.edu.my/ijem/vol3_no2.htm
  49. Kim J, Suh E, Hwang H (2003) A model for evaluating the effectiveness of CRM using the balanced scorecard. J Interact Mark 17(2):5–19. doi: 10.1002/dir.10051 CrossRefGoogle Scholar
  50. Kincaid JW (2003) Customer relationship management: getting it right!. Upper Saddle River, New JerseyGoogle Scholar
  51. King SF, Burgess TF (2008) Understanding success and failure in customer relationship management. Ind Mark Manag 37(4):421–431. doi: 10.1016/j.indmarman.2007.02.005 CrossRefGoogle Scholar
  52. Kohli AK, Jaworski BJ (1990) Market orientation: the construct, research propositions, and managerial implications. J Mark 54(April):1–18. http://www.jstor.org/stable/1251866
  53. Kotler P (2002) When to use CRM and when to forget it! Paper presented at the Academy of Marketing Science, Sanibel Harbour Resort and SpaGoogle Scholar
  54. Krasnikov A, Jayachandran S, Kumar V (2009) The impact of customer relationship management implementation on cost and profit efficiencies: evidence from the US commercial banking industry. J Mark 73(6):61–76. doi: 10.1509/jmkg.73.6.61 CrossRefGoogle Scholar
  55. Lin Y, Su HY (2003) Strategic analysis of customer relationship management—a field study on hotel enterprises. Total Qual Manag 14(6):715–731. doi: 10.1080/1478336032000053843 CrossRefGoogle Scholar
  56. Lo AS, Stalcup LD, Lee A (2010) Customer relationship management for hotels in Hong Kong. Int J Contemp Hosp Manag 22(2):139–159. doi: 10.1108/09596111011018151 CrossRefGoogle Scholar
  57. Luck D, Stephenson ML (2009) An evaluation of the significant elements of customer relationship management within the hotel industry. Tour Today 9:7–26Google Scholar
  58. Luo X, Li H, Zhang J, Shim JP (2010) Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: an empirical study of mobile banking services. Decis Support Syst 49(2):222–234. doi: 10.1016/j.dss.2010.02.008 CrossRefGoogle Scholar
  59. Malaysian Association of Hotels (MAH) (2012) Membership Directory 2012 (February), Kuala LumpurGoogle Scholar
  60. Mithas S, Krishnan MS, Fornell C (2005) Why do customer relationship management applications affect customer satisfaction? J Mark 69(October):201–209. doi: 10.1509/jmkg.2005.69.4.201 CrossRefGoogle Scholar
  61. Mohammad AA, Rashid B, Tahir S (2013) Assessing the influence of customer relationship management (CRM) dimensions on organization performance: an empirical study in the hotel industry. J Hosp Tour Technol 4(3):228–247. doi: 10.1108/JHTT-01-2013-0002 CrossRefGoogle Scholar
  62. Mohammed AA, Rashid BB, Tahir SB (2014) Customer relationship management (CRM) Technology and organization performance: is marketing capability a missing link? An empirical study in the malaysian hotel industry. Asian Soc Sci 10(9):197CrossRefGoogle Scholar
  63. Morgan NA, Zou S, Vorhies DW, Katsikeas CS (2003) Experiential and informational knowledge, architectural marketing capabilities, and the adaptive performance of export ventures. Decis Sci 34(2):287–321. doi: 10.1111/1540-5915.02375 CrossRefGoogle Scholar
  64. Narver JC, Slater SF (1990) The effect of a market orientation on business profitability. J Mark 45(4):20–36. http://www.jstor.org/stable/1251757
  65. Nasution HN, Mavondo FT (2008) Organizational capabilities: antecedents and implications for customer value. Eur J Mark 42(3/4):477–501CrossRefGoogle Scholar
  66. Ngai EWT (2005) Customer relationship management research (1992–2002): an academic literature review and classification. Mark Intell Plan 23:582–605. doi: 10.1108/02634500510624147 CrossRefGoogle Scholar
  67. Noble CH, Mokwa MP (1999) Implementing marketing strategies: developing and testing a managerial theory. J Mark 63(4):57–73. doi: 10.2307/1251974 CrossRefGoogle Scholar
  68. Nunes JC, Dréze X (2006) Your loyalty program is betraying you. Harvard Bus Rev 84(4):124–131Google Scholar
  69. Özgener Ş, İraz R (2006) Customer relationship management in small–medium enterprises: the case of Turkish tourism industry. Tour Manag 27(6):1356–1363. doi: 10.1016/j.tourman.2005.06.011 CrossRefGoogle Scholar
  70. Payne A, Frow P (2005) A strategic framework for customer relationship management. J Mark 69(4):167–176. doi: 10.1509/jmkg.2005.69.4.167 CrossRefGoogle Scholar
  71. Piskar F, Faganel A (2009) A successful CRM implementation project in a service company: case study. J Manag Inf Hum Resour 42(5):199–208. doi: 10.2478/v10051-009-0017-y Google Scholar
  72. Poon WC, Low KLT (2005) Are travelers satisfied with Malaysian hotels? Int J Contemp Hosp Manag 17(3):217–227. doi: 10.1108/09596110510591909 CrossRefGoogle Scholar
  73. Preacher KJ, Hayes AF (2008) Asymptotic and resampling strategies for assessing and comparing indirect effects in simple and multiple mediator models. Behav Res Methods 40:879–891. doi: 10.3758/BRM.40.3.879 CrossRefGoogle Scholar
  74. Pulendran S, Speed R (1996) Planning and doing: The relationship between marketing planning styles and market orientation. J Mark Manag 12(1–3):53–68. doi: 10.1080/0267257X.1996.9964400 CrossRefGoogle Scholar
  75. Ramani G, Kumar V (2008) Interaction orientation and firm performance. J Mark 72(1):27–45. doi: 10.1509/jmkg.72.1.27 CrossRefGoogle Scholar
  76. Razalli MR (2008) The consequences of service operations practice and service responsiveness on hotel performance: examining hotel in Malaysia. Unpublished PhD thesis, University Sains Malaysia, MalaysiaGoogle Scholar
  77. Reimann M, Schilke O, Thomas JS (2010) Customer relationship management and firm performance: the mediating role of business strategy. J Acad Mark Sci 38(3):326–346. doi: 10.1007/s11747-009-0164-y CrossRefGoogle Scholar
  78. Reinartz W, Krafft M, Hoyer WD (2004) The customer relationship management process: its measurement and impact on performance. J Mark Res 41(3):293–305. doi: 10.1509/jmkr.41.3.293.35991 CrossRefGoogle Scholar
  79. Reinartz W, Haenlein M, Henseler J (2009) An empirical comparison of the efficacy of covariance based and variance based SEM. Int J Res Mark 26(4):332–344. doi: 10.1016/j.ijresmar.2009.08.001 CrossRefGoogle Scholar
  80. Richards KA, Jones E (2008) Customer relationship management: finding value drivers. Ind Mark Manag 37(2):120–130. doi: 10.1016/j.indmarman.2006.08.005 CrossRefGoogle Scholar
  81. Rigby DK, Reichheld FF, Schefter P (2002) Avoid the four perils of CRM. Harvard Bus Rev 80(2):101–109Google Scholar
  82. Roberts ML, Liu RR, Hazard K (2005) Strategy, technology and organisational alignment: key components of CRM success. J Database Mark Custom Strategy Manag 12(4):315–326. doi: 10.1057/palgrave.dbm.3240268 CrossRefGoogle Scholar
  83. Ryals LJ (2005) Making customer relationship management work: the measurement and profitable management of customer relationships. J Mark 69(4):252–261. doi: 10.1509/jmkg.2005.69.4.252 CrossRefGoogle Scholar
  84. Sigala M (2005) Integrating customer relationship management in hotel operations: managerial and operational implications. Int J Hosp Manag 24(3):391–413Google Scholar
  85. Sin LY, Alan CB, Yim FH (2005) CRM: conceptualization and scale development. Eur J Mark 39(11/12):1264–1290. doi: 10.1108/03090560510623253 CrossRefGoogle Scholar
  86. Slotegraaf RJ, Dickson PR (2004) The paradox of a marketing planning capability. J Acad Mark Sci 32(4):371–385. doi: 10.1177/0092070304265217 CrossRefGoogle Scholar
  87. Soch H, Sandhu HS (2008) Does customer relationship management activity affect firm performance? Global Bus Rev 9(2):189–206. doi: 10.1177/097215090800900202 CrossRefGoogle Scholar
  88. Srinivasan R, Moorman C (2005) Strategic firm commitments and rewards for customer relationship management in online retailing. J Mark 69(4):193–200. doi: 10.1509/jmkg.2005.69.4.193 CrossRefGoogle Scholar
  89. Srivastava RK, Fahey L, Christensen HK (2001) The resource-based view and marketing: the role of market- based assets in gaining competitive advantage. J Manag 27(6):777–802Google Scholar
  90. Stockdale R (2007) Managing customer relationships in the self-service environment of e-tourism. J Vacat Mark 13(3):205–219. doi: 10.1177/1356766707077688 CrossRefGoogle Scholar
  91. Tourism Malaysia (2013) Tourism Malaysia-Statistics. http://corporate.tourism.gov.my/research.asp?page=facts_figures. Retrieved 26 April 2013
  92. Tourism Malaysia (2016) Tourism Malaysia-statistics. http://www.tourism.gov.my/statistics. Retrieved 3 Jan 2016
  93. Valerie F (2012) Re-discovering the PLS approach in management science. Management 15(1):101–123Google Scholar
  94. Verma S, Chaundhuri R (2009) Effect of CRM on customer satisfaction in service sector in India. J Mark Commun 5(2):55–69Google Scholar
  95. Vogt CA (2011) Customer relationship management in tourism: management needs and research applications. J Travel Res 50(4):356–364. doi: 10.1177/0047287510368140 CrossRefGoogle Scholar
  96. Vorhies DW, Morgan NA (2005) Benchmarking marketing capabilities for sustainable competitive advantage. J Mark 69(1):80–94. doi: 10.1509/jmkg.69.1.80.55505 CrossRefGoogle Scholar
  97. Vorhies DW, Morgan RE, Autry CW (2009) Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance. Strategic Manag J 30(12):1310–1334. doi: 10.1002/smj.798 CrossRefGoogle Scholar
  98. Wilcox PA, Gurau C (2003) Business modeling with UML: the implementation of CRM system for online retailing. J Retail Consum Services 10:181–191CrossRefGoogle Scholar
  99. Wu SI, Hung JM (2007) The performance measurement of cause-related marketing by balance scorecard. Total Qual Manag 18(7):771–791. doi: 10.1080/14783360701349831 CrossRefGoogle Scholar
  100. Wu SI, Li PC (2011) The relationships between CRM, RQ and CLV based on different hotel preferences. Int J Hosp Manag 30(2):262–271. doi: 10.1016/j.ijhm.2010.09.011 CrossRefGoogle Scholar
  101. Wu SI, Lu CL (2012) The relationship between CRM, RM, and business performance: a study of the hotel industry in Taiwan. Int J Hosp Manag 31(1):276–285. doi: 10.1016/j.ijhm.2011.06.012 CrossRefGoogle Scholar
  102. Xu M, Walton J (2005) Gaining customer knowledge through analytical CRM. Ind Manag Data Syst 105(7):955–972. doi: 10.1108/02635570510616139 CrossRefGoogle Scholar
  103. Yen FL, Othman M (2011) Data envelopment analysis to measure efficiency of hotels in Malaysia. SEGi Rev 41(1):25–36Google Scholar
  104. Yim FHK, Anderson RE, Swaminathan S (2004) Customer relationship management: its dimensions and effect on customer outcomes. J Person Selling Sales Manag 24(4):263–278Google Scholar
  105. Zhao X, Lynch JG, Chen Q (2010) Reconsidering Baron and Kenny: myths and truths about mediation analysis. J Consum Res 37:197–206. doi: 10.1086/651257 CrossRefGoogle Scholar
  106. Zikmund WG (2003) Business research methods. South-Western, OklahomaGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2017

Authors and Affiliations

  • Abdul Alem Mohammed
    • 1
  • Basri B. Rashid
    • 1
  • Shaharuddin B. Tahir
    • 1
  1. 1.Faculty of Administrative School of Tourism, Hospitality and Environmental ManagementUniverisiti Utara MalaysiaSintokMalaysia

Personalised recommendations