Abstract:
The present research examines the relationship between the elements of CRM which comprise Customer Orientation, Technology Orientation, Information Orientation, Customer Knowledge, and Customer Engagement with Firm Performance. Underpinned by the Resource-Based View (RBV) theory, the study shows that CRM constituents’ figure as strategic assets that would improve organizational performance. In this study, data was collected from the employees working in Pakistan telecom industry for firms like Jazz, Telenor, Zong and Ufone and the data was collected in a quantitative way. A structured questionnaire was administered to 242 participants, and data was analyzed with the Statistical Package for Social Sciences (SPSS) determining simple and multiple correlation coefficients, regression, and reliability tests. The results clearly show a positive correlation between all five CRM constituents and Firm Performance While Customer Engagement is the biggest determinant of Firm Performance. Information Technology Orientation and Information Orientation help firms to adopt data and sophisticated instruments for decision-making and individual client interactions. Customer knowledge helps firms in learning the customers’ preferences and buying behavior and hence will build a better product that will suit the customers thus enhancing the overall satisfaction of the customers. Self-Orientation is focused on the customer and their needs where the organizational strategies are adjusted so as to capture their confidence. As such, the study provides relevant insights for managers primarily by focusing on the linkage of the CRM components with the aim of increasing performance and gaining a competitive edge. Managerial implications found in literature encourage organizations to develop and purchase better CRM technology and further customer company (Random:87) initiatives and encourage employee involvement in CRM process. These theoretical developments support the framework of the RBV if they show that CRM is a valuable organizational asset. Nevertheless, several limitations should be noted, viz., the study adopts a cross-sectional research design and samples employees in the telecom sector only. There is a need to research future extensions of current work in longitudinal studies and comparative studies on cross-industries. This paper highlights the importance of the CRM components in relation to firms’ performance and offers a foundation for organizations to enhance customer-centered initiatives for sustainable firm profitability
