Adoption of Customer Relationship Management in the Service Sector and Its Impact on Performance

Abstract

This article provides a comprehensive analysis of the factors that determine the adoption of customer relationship management processes in the service sector. The article conceptualises and measures adoption as a continuous multi-item construct. The conceptual model combines an extended version of Rogers's (1962) perceived attributes of innovation model with Y. M. Sin, C. B. Tse, and H. K. Yim's (2005) conceptualisation of customer relationship management practice within organisations. The outcomes of adoption are measured in terms of business performance and customer/employee satisfaction. The model is tested using structural equation methods and questionnaire data from 215 organisations in Hong Kong. This article highlights the value of analysing the adoption of a complex innovation using a multifaceted dependent variable.

KEYWORDS:

• customer relationship management
• innovation adoption
• relationship marketing
• structural equation modelling

Notes

This included organisations in retail, wholesale and retail trade, import/export trade, restaurants and hotels, transport and storage, communications, financing and insurance, and business services