Customer relationship management and firm performance: The mediating role of business strategy

Martin Reimann, Oliver Schilke, Jacquelyn S. Thomas

Research output: Contribution to journalArticle

104 Scopus citations

Abstract

As managers and academics increasingly raise issues about the real value of CRM, the authors question its direct and unconditional performance effect. The study advances research on CRM by investigating the role of critical mechanisms underlying the CRM-performance link. Drawing from the sources→positions→performance framework, the authors build a research model in which two strategic postures of firms-differentiation and cost leadership-mediate the effect of CRM on firm performance. This investigation also contributes to the literature by drawing attention to the differential impact of CRM in diverse industry environments. The study analyzes data from in-depth field interviews and a large-scale, crossindustry survey, and results reveal that CRM does not affect firm performance directly. Rather, the CRM-performance link is fully mediated by differentiation and cost leadership. In addition, CRM's impact on differentiation is greater when industry commoditization is high.

Original languageEnglish (US)
Pages (from-to)326-346
Number of pages21
JournalJournal of the Academy of Marketing Science
Volume38
Issue number3
DOIs
StatePublished - Jan 1 2010
Externally publishedYes

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Keywords

  • Business strategy
  • CRM
  • Customer relationship management
  • Industry commoditization
  • Mediation
  • Structural equation modeling

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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