Innovative CRM and Performance of SMEs: The Moderating Role of Relational Capital

Abstract

Customer Relationship Management (CRM) is more than an information tool and plays a critical role in small and medium enterprises (SMEs). The present study explored the moderating effect of relational capital (RC) on the relationship between CRM dimensions and the performance of 284 Yemeni manufacturing SMEs. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to test the study’s hypotheses. Results indicate that only three of the CRM dimensions have a significant effect on performance. The moderating effects of relational capital on this relationship were also examined and were found to be significant for only two CRM dimensions: technology-based CRM and CRM organization. Key customer focus and CRM knowledge management had no effect. The findings of this study offer important insights for owners and managers of SMEs, researchers, and policymakers to further understand the effects of relational capital and CRM on SMEs’ performance. SMEs should be encouraged to develop their CRM and relational capital to improve their performance.

Intellectual capital and innovation performance: the moderating role of big data analytics: evidence from the banking sector in Jordan

“…Relational capital can help organisations benefit from opportunities abroad and from existing knowledge and technology. New products, services or ways of working can be created that enhance the competitiveness of these organisations (AlQershi et al, 2020;Paoloni et al, 2019). The study results agree with many previous studies in the literature, such as those of Buenechea-Elberdin et al (2018a, b), Ibidunni et al (2020), Onofrei et al (2020), Ryu et al (2021) and Vlaisavljevic et al (2016).…”

“…Relational capital helps organisations and their employees benefit from external knowledge found abroad. Relational capital allows employees in the organisation to conduct social interaction among themselves and with others to obtain and evaluate new knowledge and exploit it to invent new methods to enhance the effectiveness of the knowledge within the organisation – ultimately, turning this process into an organisational routine (AlQershi et al. , 2020; Carmeli and Azeroual, 2009; Paoloni et al.…”

Intellectual capital and performance of automotive manufacturers: the role of strategic thinking

“…The level to which a specific latent construct is different from other constructs in the model is known as discriminant validity (DV) (Baker and Hart, 2016); according to Hulland (1999), DV can be assessed using AVE, in which the relationships amongst the latent constructs are compared to the AVE square roots. DV can also be obtained using Alqershi et al 's (2020a, b) criterion, in which the indicator loadings are compared with those of other reflective indicators within the cross-loading Table 4, it is evident that this is the case.…”

“…The measurement items were obtained from the literature, specifically 22 measuring ST adopted from AlQershi (2021) and Liedtka (1998); 9 measuring IC from Sharabati et al (2010) and 10 measuring performance from Alqershi et al (2020a, b) and Gupta and Govindarajan (1984). The responses to the items of ST and IC were measured on a five-point Likert scale ranging from 1 “strongly disagree” to 5 “strongly agree”, while those on performance were measured on a five-point Likert scale ranging from 1 “much lower” to 5 “much higher” (refer to Appendix).…”

The effect of digital marketing on the management of relationships with university students in times of Covid-19

“…According to Alqershi (2020), the size of the global market in relation to customers is constantly growing that is why the technology evolved adapting to the real needs of companies making what at first were doubts now are certainties, making references to CRM which is a tool that will customize the shopping experience of customers, getting that in the long-term customers are loyal and tend to be less sensitive to price and commercial stimuli of competitors.…”