Multivariate Analysis: Investigating the Adoption of Customer Relation Management System among the Business Establishments in Butuan City, Philippines

Abstract

The purpose of this study was to determine the usefulness of different types of multivariate analyses in predicting CRM system adoption among selected commercial establishments in Butuan City, Philippines. The researchers employed the Technology Acceptance Model (TAM), and the Technology-Organization-Environment (TOE) were used as independent variables, the Diffusion of Innovation (DOI) was used as a mediating variable, and respondents' profile was used as a moderating variable. The researchers generated empirical data for both descriptive and correlational analyses by utilizing the Multiple Regression Analysis (MRA) model, Hierarchical Regression Analysis (HRA) moderation, Hierarchical Regression Analysis (HRA) mediation analysis, and Analysis of Variance (ANOVA) techniques. The researchers were able to collect 148 responses out of 1,765 registered business establishment in Butuan City, and data were treated with different type of statistical tools. The descriptive information about CRM system acceptance using technology-organization-environment framework, most of the business establishments responses are verbally interpreted as “acceptable”, while the features of CRM system such as compatibility, relative advantage, and complexity are verbally interpreted as “high” and the possibility of adopting CRM system is verbally interpreted as “influential” indicating that the factors included in technology adoption models are effective in projecting the intended results while most of the organizations agreed that CRM system can help them in improving their business performance while providing better customer service and customer relationship management. The results of ANOVA test showed that there are no significant differences on the assessment of the features of CRM system indicating that most of the respondents agreed that CRM system can have value in their business once it is implemented in their respective organization. The overall likelihood of CRM adoption among the business establishments showing R-squared of .863 indicating that the MRA model predicted 86 percent of the variance in technology adoption core contexts model that can explain factors influencing business establishments in Butuan City to implement CRM system as part of their marketing strategy. The HRA moderation model showed that the respondent’ profile cannot moderate the relationship between the level of technology adoption contexts and the possibility of CRM system adoption showing new finding. The mediation analyses revealed that perceived features of the CRM system have no significant effect to the relationship between the level of technology adoption contexts and the possibility of CRM system adoption the finding contradict to the previous study where in the CRM system features can influence to adoption. The findings have practical implications for business owners considering CRM adoption as part of their marketing strategy. Though the researchers believed that this study has contributed a lot to the body of knowledge of CRM system adoption both in local and international context and were able to expand the TAM and TOE frameworks through adding constructs that are relevant to the study, the results of interpretations and analyses are still not enough because of limited sample size, limited coverage on target population, and some factors in technology acceptance models are not included in this study. Future researchers may consider including the technology adoption classifications, the process of technology diffusion, system risks, and link it to the framework such as business performance.