The Influence of Customer Relationship Management in Enhancing Hospitality Business Performance: The Conditional Mediation of Digital Marketing Capabilities

Figures & data

Figure 1. Model research.

Table 1. Respondents’ profile.

		Frequency	Percentage
Time used CRM	Less than 1 year	178	31.3
	From 1 to 3 years	291	51.1
	more than 3 years	100	17.6
Job’s title	Customer Service Director	354	62.2
	IT Administrator	101	17.8
	Finance Administrator	83	14.6
	Owner	31	5.4
Types of lodges	1 star	30	5.3
	2-star	92	16.2
	3-star	286	50.3
	4-star	88	15.5
	5-star	73	12.8

Table 2. Factor loadings.

	Factor loadings
Constructs/measurement items	EFA	CFA 1 order	t-values	CFA 2 order	t-values
Digital Marketing Capabilities α = 0.868; CR = 0.868, AVE = 0.569
Your business creates and manages durable customer relationships through digital media.	0.740	0.747	Fixed
Your business predicts changes in customer preferences using digital media to enhance market-sensing digital.	0.814	0.767	17.679
Your business use channel-bonding with wholesalers, retailers through digital media.	0.694	0.721	16.592
Your business takes advantages of capabilities in creating durable relationships with suppliers through digital platforms	0.670	0.746	17.181
Your business is able to use digital marketing to retain customers.	0.816	0.789	18.196
CRM α = 0.863; CR = 0.863, AVE = 0.558
CRM System uses personal information to provide customized products/services.	0.689	0.729	Fixed
CRM System has many functions to enhance customer experience (reservation, customer type analysis, customer profile …).	0.722	0.761	17.009
CRM System provides Process-driven approach (correctly, rapidly).	0.795	0.751	16.791
CRM System provides technology orientation well (e-mail reply, inbox pop-up, online real-time human response …).	0.745	0.758	16.933
CRM System is reliable to use.	0.747	0.736	16.457
HBP α = 0.789; CR = 0.887, AVE = 0.663
Learning growth α = 0.836; CR = 0.836, AVE = 0.630				0.809	Fixed
Employees improve their problem-solving ability	0.787	0.762	Fixed
Employees intend to learn in the near future	0.739	0.825	18.853
Employees effectively promote the corporate culture	0.734	0.792	18.233
Financial return α = 0.865; CR = 0.866, AVE = 0.564				0.846	13.482
Your business increases return on investment	0.795	0.780	Fixed
Your business grows in return on assets	0.672	0.695	16.809
Your business reduces unexpected losses	0.746	0.770	18.89
Your business reduces total costs	0.719	0.715	17.354
Your business increases net profit margin	0.734	0.791	19.49
Customers α = 0.864; CR = 0.864, AVE = 0.615				0.822	13.452
Your business satisfies the needs of various types of customers	0.829	0.801	Fixed
Your business makes an increase in customers intending to purchase	0.705	0.781	19.631
Your business increases customer satisfaction	0.773	0.779	19.571
The customers loyal to your business	0.734	0.774	19.436
Internal process α = 0.862; CR = 0.863, AVE = 0.611				0.78	12.852
Your business increases operating efficiency	0.814	0.783	Fixed
Your business reduces customer complaint	0.740	0.782	18.995
Your business improves the ability to retain old customers	0.736	0.782	18.994
Your business improves the ability to confirm target customers	0.777	0.78	18.953

Table 3a. Convergent validity – CFA 1 order.

	Mean	SD	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
(1) DMC	3.208	0.589	0.754
(2) CRM	3.320	0.628	0.548	0.747
(3) GROW	3.465	0.754	0.515	0.511	0.793
(4) FIN	3.472	0.731	0.528	0.560	0.690	0.751
(5) CUSTOM	3.448	0.747	0.500	0.543	0.670	0.689	0.784
(6) INTER	3.433	0.736	0.484	0.525	0.622	0.657	0.647	0.781
(7) Used_CRM			0.407	−0.003	0.062	0.027	−0.025	0.043
(8) Job’s title			0.364	0.007	−0.063	−0.038	−0.008	−0.079	−0.761
(9) Types_of_lodges			0.322	−0.016	0.051	0.014	−0.024	0.061	0.854	−0.771

(i) Model Fit Statistics (χ2 = 298.904, df = 284; χ2/df = 1.052, CFI = 0.998, SRMR = 0.010, RMSEA = 0.024). (ii) DMC: Digital Marketing Capabilities; CRM: Customer Relationship Management; GROW: Learning Growth; CUSTOM: Customers; INTER: Internal Process; FIN: Financial Return.

Table 3b. Discriminant validity- CFA 1 order.

	DMC	CRM	GROW	FIN	CUSTOM	INTER
DMC
CRM	0.552
GROW	0.514	0.507
FIN	0.528	0.558	0.689
CUSTOM	0.501	0.543	0.665	0.692
INTER	0.486	0.525	0.621	0.656	0.649

(i) Discriminant validity achieved at HTMT_0.85 (ii) DMC: Digital Marketing Capabilities; CRM: Customer Relationship Management; GROW: Learning Growth; CUSTOM: Customers; INTER: Internal Process; FIN: Financial Return.

Table 4a. Convergent validity – CFA 2 order.

	Mean	SD	DMC	CRM	HBP	Used_CRM	Job	Types_of_hotels
DMC	3.208	0.589	0.754
CRM	3.320	0.628	0.548	0.747
HBP	3.454	0.610	0.622	0.657	0.814
Used_CRM			0.043	−0.003	0.033
Job’s title			−0.060	0.007	−0.057	−0.761
Types_of_lodges			0.007	−0.016	0.031	0.854	−0.771

(i) Model Fit Statistics (χ2 = 300.819, df = 292; χ2/df = 1.030, CFI = 0.999, SRMR = 0.025, RMSEA = 0.007). (ii) DMC: Digital Marketing Capabilities; CRM: Customer Relationship Management; HBP: Hospitality Business Performance.

Table 4b. Discriminant validity- CFA 2 order.

	CRM	DMC	HBP
CRM
DMC	0.552
HBP	0.593	0.626

(i) Discriminant validity achieved at HTMT_0.85 (ii) DMC: Digital Marketing Capabilities; CRM: Customer Relationship Management; HBP: Hospitality Business Performance.

Table 5. Model fit of structural model.

Model	χ2	df	χ2/df	Δχ2/df	GFI	TLI	CFI	RMSEA	SRMR
1	156.298	1	156.298	-	0.893	0.287	0.881	0.523	0.067
2	6.546	6	1.091	155.207	0.996	0.999	1.000	0.013	0.017
3	15.677	11	1.425	0.334	0.992	0.995	0.997	0.027	0.036

Note: (i) Model 1: 3 control variables (Used_CRM, Types_of_hotels, Job’s Title) and HBP; Model 2: 3 control variables, DMC, CRM and HBP; Model 3: 3 control variables, DMC, CRM, DMC*CRM and HBP. (ii) CFI: Comparative fit index; GFI: Goodness-of-fit index; TLI: Tucker-Lewis index; RMSEA: Root mean square error of approximation; SRMR: Standardized root mean squared residual.

Table 6. Structural model evaluation.

Relationships	Direct model		Conditional Indirect Effect for Moderator
	Unstandardized Coefficient	p-Value	Unstandardized Coefficient	p-Value	Confidence Interval
Used_CRM ->HBP	−0.069	0.217
Types_of_lodges ->HBP	0.033	0.299
Job’s title ->HBP	−0.031	0.354
H1: DMC -> HBP	0.343	<0.001
H2: DMC -> CRM	0.508	<0.001
H3a: CRM -> HBP	0.367	<0.001
H3b: DMC -> CRM -> HBP	0.343	<0.001	0.187	<0.001	[0.145; 0.235]
H4: DMC_X_CRM -> HBP	0.340	<0.001
Index of Moderated Mediation			0.172	<0.001	[0.122; 0.222]
High Level of DMC			0. 292	<0.001	[0.237; 0.352]
Mean Level of DMC			0.187	<0.001	[0.145; 0.235]
Low Level of DMC			0.081	<0.001	[0.033; 0.137]

Note: (i) DMC: Digital Marketing Capabilities; CRM: Customer Relationship Management; HBP: Hospitality Business Performance.

Figure 2. Conditional indirect effect for mediation.

Table

Variables	Items
Digital Marketing Capabilities (Hashim et al., 2023; F. Wang, 2020)	Your business creates and manages durable customer relationships through digital media. Your business predicts changes in customer preferences using digital media to enhance market-sensing. Your business use channel-bonding with wholesalers, retailers through digital media. Your business takes advantages of digital platform capabilities in creating durable relationships with suppliers. Your business is able to use digital marketing to retain customers.
Customer Relationship Management (Roy et al., 2012)	CRM System uses personal information to provide customized products/services. CRM System has many functions to enhance customer experience (reservation, customer type analysis, customer profile …). CRM System provides Process-driven approach (correctly, rapidly). CRM System provides technology orientation well (e-mail reply, inbox pop-up, online real-time human response …). CRM System is reliable to use.
Hospitality Business performance (Foltean et al., 2019)	Learning Growth Employees improve their problem-solving ability. Employees intend to learn in the near future. Employees effectively promote the corporate culture
	Financial Return Your business increases return on investment. Your business grows in return on assets. Your business reduces unexpected losses. Your business reduces total costs. Your business increases net profit margin
	Customers Your business satisfies the needs of various types of customers. Your business makes an increase in customers intending to purchase. Your business increases customer satisfaction The customers loyal to your business
	Internal process Your business increases operating efficiency. Your business reduces customer complaints. Your business improves the ability to retain old customers. Your business improves the ability to confirm target customers.

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Data Availability Statement

The data that support the findings of this study are available from the corresponding author upon request.