Service, People and Customer Orientation: A Capability View to CRM and Sustainable Competitive Advantage

Abstract

In today’s highly competitive business environment enterprises are continuously striving to achieve a sustainable advantage. This sustainable advantage can be accomplished only when the enterprise is realizes a value-creating strategy, simultaneously not being implemented by any current or potential competitor(s) and when other firms are unable to replicate the benefits of this strategy. A very little literature is available that investigates the relationship among customer relationship management (CRM) capability variables and sustainable competitive advantage (SCA). In this backdrop, the article tries to analyse the role of CRM capability towards the goal of SCA. It identifies three CRM capability factors, that is, service capability, personnel capability and customer orientation and examines their effect on SCA. Structural equation modelling (SEM) has been used on a sample of 204 respondents who were selected randomly from the population of bank employees. The data have been collected from the bank employees through a structured questionnaire. The findings of the study reveal that CRM capability (having three domains—service capability, personnel capability and customer orientation) has a significantly positive impact on the SCA. This article contributes to the theory by examining CRM capability variables and tries to determine their impact on SCA in the banking sector, as CRM is now becoming strategically crucial in the banking industry.

Leveraging knowledge sharing and innovation culture into SMEs sustainable competitive advantage

“…The sustainable competitive advantage used seven dimensions, namely, innovation practices, service delivery systems, growth and performance, market share (Singh and Verma, 2019; Soetjipto et al , 2018; Zainol and Al Mamun, 2018), value, rareness and imperfectly non-imitable (Anwar et al , 2018; Bhat and Darzi, 2018; Sigalas and Papadakis, 2018). In measuring these dimensions, modified and elaborated measurements were adopted to best suit the research topic (see Table 3).…”

“…It occurs when other companies do not replicate the benefits of competitive advantage. Organizations focus on identifying different product strategies, building core competencies, employing skilled personnel and accumulating intellectual property to achieve performance in competitive markets (Bhat and Darzi, 2018). According to Amoako (2019), sustainable competitive advantage is achieved through the role of leadership and the effectiveness of implementing strategies that affect the organization's environmental activities.…”

Leveraging Knowledge Sharing and Innovation Towards Resilient Competitive Advantage:

“…Organizations are expected to focus on different strategy, enhance service delivery, and hiring high quality manpower [18] to achieve performance [25]. Resilient competitive advantage achieved through effective strategy [26] namely: leadership, organizational culture, team-based structure, and human capital and control management [13].…”

“…Innovation develop of new products, processes, and added value [35]. Competitive advantage refers that organization has resources and capabilities [36] capacity to adapt, respond, and detect opportunities [37] and react successfully to change [38]; [11] both in the technical and non-technical [25]. Based on this, the hypothesis can be formulated as follows.…”

“…Resilient competitive advantage is measured by seven indicators, namely innovation practices, service delivery systems, growth and performance, market share [10,34,41], value, rareness, and imperfectly non-imitable [1,25].…”