Merger: institutional interplay with customer relationship management

Abstract

Purpose -The purpose of this paper is to discuss institutional influence on customer relationship management (CRM) practices and the restructuring of portfolios during the merger of two pharmaceutical companies. Design/methodology/approach -An explanatory case study from the perspective of the focal actor. Findings -Isomorphic pressures and some organizational conditions are identified as relevant factors in the redefinition of the customer, the outcome of which is the deinstitutionalization of some CRM practices and the restructuring of customer portfolios. It is also proposed that procedural legitimacy drives the change within the network organization. Research limitations/implications -This study reported in this paper is idiographic and explores one case. Further longitudinal research is needed in order to generalize the findings. Practical implications -CRM practices are contingent upon how isomorphic pressures are coped with and how the institutional arrangements are utilized during the merger. Originality/value -This paper contributes to the discussion on institutional influence on CRM in network organizations.

The adoption of customer relationship management (CRM) technology in SMEs

“…Many studies suggest that SMEs lack knowledge, understanding and the capability to deploy CRM applications (Ö zgener andIraz, 2006, Peltier et al, 2009). Most research on CRM has been undertaken within large organisations and there are few studies which have investigated CRM adoption within SMEs (Krasnikov et al, 2009;Lukkari, 2011). Where technology adoption of CRM has been the focus, models such as the Technology Acceptance Model (TAM), the Diffusion of Innovation (DoI) or the Technology, Organisation and Environment (TOE) framework have provided insight into key barriers that affect organisational adoption, while also providing frameworks around which critical factors for adoption can be grouped (Ko et al, 2008;Peltier et al, 2009;Venkatesh and Davis, 2000).…”

“…These figures demonstrate the importance of this sector to the California, and hence to the US economy. There has been much research carried out into the adoption of CRM technology in larger firms (Lukkari, 2011), but CRM adoption in SMEs is an area that is under-researched (Wahlberg et al, 2009). Given the benefits of CRM technology (Nguyen et al 2007) and the importance of SMEs to the US economy, it is essential that the adoption and implementation of CRM in these businesses is better understood.…”

Testing and Validating Customer Relationship Management Implementation Constructs in Egyptian Tourism Organizations

“…It causes vast change within the organization that needs to be managed carefully to get the full advantage of CRM software. It is a mistake to view CRM project implementation as only an IT project Davenport & Short, 1990;Greenberg, 2010;Johnson, 2004;Hande Kimiloglu & Zarali, 2009;Lukkari, 2011;McKenzie, 2001;Porter, 1987;Ranjan & Bhatnagar, 2011). CRM has become one of the critical driving forces for business success.…”

“…Successful CRM implementation focuses on understanding customer needs and desires and integrating them with the organization strategy, technology, and business processes (Greenberg, 2010;Gupta & Shukla, 2001;Lukkari, 2011). True success is created when the company applies the best technology that enables the best processes to be executed by the best people.…”

Electronic Customer Relationship Management Assimilation in Southeastern European Companies—Cluster Analysis

“…On the other hand, as a large amount of research already exists in relation to the acceptance of the CRM by big companies, and a smaller amount exists for SMEs [32], [33], this research comprises both groups. Additionally, in focusing on a specific geographical region, the authors hope to provide findings which will further serve to confirm whether or not different regions have a tendency to create their own organizational arrangements which support IT innovations and IT practices, as some previous researchers have claimed [34], [35].…”