A model for understanding the market-orientation effects of CRM on the organizational processes

Abstract

To build an understanding of the impacts of Customer Relationship Management (CRM) on organizational behaviors and processes this study strives to develop a model of CRM effects on work practice, value-creation processes and organizational performance. Moderating factors that affect the transition results are also studied. The model is developed by iterative steps of content analysis. The objectives of building this model are: 1) to establish a framework with propositions about the chained effects of CRM on organizational performance and the influential management activities and 2) to develop a measurement instrument of the CRM effects on market-oriented behaviors and performance. Although the model testing and enhancement are in progress, the preliminary findings reveal that behavioral changes towards market-orientation can be reflected in two levels of work practice: coordinated intelligence management in the team work and proactive attitude with individuals. With such a market-oriented focus, CRM user organizations are more likely to develop positive market performance as well as process performance, and indirectly bring up financial performance.