The Moderating Effect of Environmental Turbulence on the Relationship Between Customer Relationship Management and Business Performance

Abstract

This article mainly aims to verify the moderating role environmental turbulence plays on the relationship between customer relationship management and business performance. The research was performed based on the survey performed in Ghana telecommunication sector, and the sample included 579 staff from MTN Ghana, VODAFONE Ghana, ALTEL/TIGO Ghana, ESPRESSO Ghana and GLOBACOM Ghana. The statistical analysis of the obtained results was carried out using multiple linear regression analysis with STATA and AMOS statistical software package. The obtained results clearly show that all constructs of CRM namely information sharing, customer involvement, joint problem solving, long-term partnership and technology-based CRM have a significantly positive impact on business performance. The moderation analysis indicated that technological turbulence positively moderates the relationship that existed between the various constructs of customer relationship management and business performance indicating that technological turbulence significantly strengthens the relationship between these variables. On the contrary, market turbulence significantly weakens the relationship between the various customer relationship management constructs and business performance. These findings contribute immensely to literature and knowledge by indicating which moderating environmental turbulence significantly strengthens and weakens the existing relationship between customer relationship management and business performance within the Ghanaian telecommunication sector.

Customer Relationship Management, Innovation Capability, Technological Environment, and Performance of Small and Medium Scale Enterprises: A Research Framework and Proposition

“…Environmental variable have always been adjudged as an important contingency factor in the customer orientation performance relationship [45,46]. Previous studies such as [39,13,12] found that technology turbulence moderates the relationship between CRM and business performance. In addition, the study of Neneh [46] revealed that environmental factor as market turbulence, competitive intensity, and technology turbulence moderates the association between CRM and SMEs performance.…”

“…Prior studies on customer relationship management and firm performance have produced difference results with some showing positive association [12,13]. In Nigeria researches by Aremu, Adeniran, and Adesola [14] found that CRM increases organizational performance.…”