Determinants of Mobile Customer Relationship Management Adoption and Its Impact on Firm Performance in Kenya

ABSTRACT

This study investigates the determinants of mobile customer relationship management (mCRM) adoption, and its impact on firm performance measured as sales revenue performance. Data collected from business enterprises in Kenya is analyzed using an instrumental variables endogenous treatment effects model. We find that information technology infrastructure, firm size, and competition are positively associated with the adoption of mCRM. We also find that mCRM has a positive and significant impact on sales revenue performance. We conclude that government investment in information and communications technology infrastructure facilitating the mCRM interface may play a critical role in enhancing firm performance.

RESPONSIBLE EDITOR:

• Simplice Asongu

KEYWORDS:

• Mobile customer relationship management (mCRM)
• customer experience
• firm performance
• instrumental variables endogenous treatment effects
• Kenya

Acknowledgments

The authors would like to thank Ajua CEO Kenfield Griffith for giving us the opportunity to study mCRM. The authors are also grateful for the support given by Claire Munene, Samuel Kamande, Caroline Onyari, Lawrence Wamweya, and all other Ajua staff members.

The authors would also like to give special thanks to, Arianna Legovini, Shahrokh Fardoust, Matt Ripley, and anonymous reviewers for their helpful suggestions and comments.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 This is an adaptation of Simon et al. (2016) Customer Centricity Scorecard.

Additional information

Funding

The work was supported by the European Investment Bank [GDNIO/GRANT/2018-19/034/EIB2016]; European Investment Bank [GDNIO/GRANT/2018-19/029/EIB2016].