An Empirical Study of the Impact of IT Intensity and Organizational Absorptive Capacity on Customer Relationship Management Performance

In recent years, e-Business has emerged as a mainstream business practice. Engaged in highlycompetitive Internet -enabled markets, many business organizations have turned to customer relationship management (CRM), a computer -based information system that allows them to gain greater insight into their customers’ needs, to gain a competitive advantage. Consequently, CRM has risen to become a key ebusiness issue. Yet, many critical organizational factors underlie the success and performance of CRM. This study examines the impact of information technology (IT) intensity and organizational absorptive cap acity on CRM practices and performance, and presents a research model. Data collected through a survey of Taiwan financial service institutions suggest that CRM practices mediate the effects of IT intensity and organizational absorptive capacity on CRM performance

An Exploratory Study of the Effects of CRM Practices on CRM Effectiveness and Business Performance

Continual advances in information technology (IT) have opened new business opportunities in global marketplaces. As a result, many businesses have turned to CRM to gain greater insights into their customers and apply this knowledge toward forging long-term relationships with them. This study examines the relationships of CRM practices (marketing and operational programs) with three antecedent elements (IT investments, absorptive capacity, strategic alignment), CRM effectiveness and firm (business) performance. The results of a survey suggest the following: absorptive capacity and strategic alignment have positive effects on CRM practices, CRM practices affect CRM effectiveness, CRM effectiveness affects firm performance, and CRM effectiveness mediates the effect of CRM practices (marketing programs) on firm performance. Hence, the CRM practices a business adopts will have an impact on its performance

An Examination of the Effects of IT Intensity and Organizational Absorptive Capacity on CRM Practices

Electronic business (e-business) brings many new opportunities as well as several challenges to business organizations. Many organizations have turned to customer relationship management (CRM) to leverage their market orientation, customiz e their products and services, and build loyalty programs. However, capitalizing on the opportunities will require organizational investments in information technology (IT) and absorptive capacity. This study examines the effects of investments in IT (IT intensity) and absorptive capacity on CRM practices, particularly market orientation, customization and loyalty programs. The results suggest that a positive relationship exists among them. Thus, organizations should devote resources toward developing their IT investments and absorptive capacity to benefit from their CRM practices

Organizational Learning and Absorptive Capacity in Managing ERP Implementation Projects

In this paper we focus on large-scale IS implementation using the lens of absorptive capacity. Our case study concentrates on the double loop learning process that occurs over the implementation phase of ERP which we depict as a series of learning cycles. From this perspective, ERP implementation is best viewed not as a one-time process but rather as a series of implementation and practical use cycles. Our results highlight that the learning process requires the accumulation of knowledge, a long-term perspective, and phases of explorative and exploitative learning that overlap. This learning process requires a) the development of specific organizational capabilities which allow organizational actors to “accept” and assimilate external knowledge, b) the understanding that such capabilities should be developed over time, and c) the capacity to explore and exploit knowledge simultaneously. Suggestions are provided for future field research on absorptive capacity in the realm of the qualitative research

Applying Absorptive Capacity Construct to Customer-related Knowledge Processing

The importance of customer-related knowledge as a source of competitive advantage has been addressed by several researchers during the last decade. However, only a little is known about the processes through which firms learn to know their customers organization-wide. In this article we propose that one possibility to study how firms process customer-related knowledge, and thus learn about and from their customers organization-wide, is to apply absorptive capacity construct originally developed in the context of innovation activities. By building on previous literature on absorptive capacity, customer knowledge management and relationship marketing, we introduce a conceptual framework of customer-related absorptive capacity, and discuss the external and internal antecedents to the construct. We propose that customer relationship performance could at least partly be explained by the capability of the supplier firm to acquire, assimilate, transform and exploit customer-related knowledge

The Effects of Enterprise Systems on the Absorptive Capacity of Greek Firms

In the highly dynamic, competitive, complex and ‘knowledge intensive’ modern economy the exploitation and management of external knowledge has become of critical importance for the success of firms, and this has led to increasing interest of both researchers and practitioners in the concept of firm’s absorptive capacity (ACAP). It has been recognized that information and communication technologies (ICT) can be quite useful for the improvement of firms’ ACAP. Some empirical research has been conducted in this direction, which however has not examined the role from this perspective of the most important ICT investments of firms: the different types of enterprise systems (ES) implemented by firms increasingly, which become critical infrastructures of their operation. This paper contributes to filling this research gap, by presenting an empirical investigation of the effects of the five most important and widely used types of enterprise systems (ERP, CRM, SCM, business intelligence/business analytics and collaboration support systems) on the ACAP of Greek firms. It is based on data collected through a survey from 122 Greek firms from both manufacturing and services sectors, which are used for the estimation of regression models of firm’s ACAP. It has been concluded that the use of three of the above types of ES, the ERP, the CRM and the business intelligence/business analytics ones, have positive effects on firm’s ACAP, which concern mainly two of its dimensions: the internal diffusion and analysis of external knowledge, and also the assimilation/integration in the knowledge base of the firm

Drivers and Impacts of R&D Adoption on Transport and Logistics Services

Actually, technologies and applications in industries are changing via business restructuring, new business models, new knowledge and supply chains. So R&D is not focused primarily on manufacturing industry as it used to be, but on different kinds of industries as logistics and transport (TLS). Nevertheless, the characteristics of the TLS industry determine the introduction of specific R&D solutions accordingly to sectors operations. The objective of this paper is to describe the R&D opportunities in the TLS industry and how managers use them to make their businesses more innovative and efficient. Using the Structure-Conduct-Performance (SCP) model the paper identifies the links between R&D adoption and innovation dynamics. Relating the findings, on the driver’s side there are three points that are worth mentioning: increasing market competition, the relationships of firms interacting with each other and the availability and quality of complementary assets such as employee skills and IT know-how. On the impacts’ side, firms advanced in terms of implementing R&D solutions are more likely to implement organizational changes. Finally, a set of recommendations on how to further improve the continuous innovation in the TLS industry is presented

The influence of absorptive capacity and networking capabilities on small and medium enterprises

Abstract: Background: In response to the ever-growing complexity in the business environment that has resulted from the dramatic technological transformation, businesses have altered the way they conduct business. The influence of the external business environment is increasing in significance, rendering traditional methods of operating business outdated and forcing the adoption of new methods. Objective: The aim of this study is to investigate how organisational capabilities influence small and medium enterprises’ (SMEs) operational performance (OP), by specifically looking at absorptive capacity (ACAP), networking capabilities (NCs) and customer relational capabilities (CRCs). Setting: This study was conducted in Zimbabwe and was spread across the 10 provinces, focusing on 388 randomly selected SMEs. Methods: Data were collected through self-administering questionnaires to respondents, using the drop-off or pickup technique and making telephonic follow-ups to increase the response rate. Analysis of the data in this study was largely quantitative in nature and it was performed using a two-step structural equation modelling approach. Results: The results of the study indicate that CRCs lead both ACAP and NCs to improve OP. Conclusion: This study enlightens both SMEs’ managers and policymakers on the significance of capabilities, as opposed to resources, in the growth of the SMEs sector. In light of the results, it is imperative that firms orientate themselves to embrace networking and ACAP as central tenets of their day-to-day operations while attending to customers timely and innovatively

Drivers and Impacts of ICT Adoption on Transport and Logistics Services.

The availability of high-quality transport and logistics services (TLS) is of paramount importance for the growth and competitiveness of an economy. The objective of this paper is to describe how European companies in this industry use information and communication technology (ICT) for conducting business and to assess the impact of this development for firms and the industry as a whole. A comparison with some important Asia Pacific economies is also presented, indicating that some of these countries (Singapore, Hong Kong, Japan, Taiwan, and Korea) boast very good transport infrastructure compared with the most developed European economies. Using the structure-conduct-performance (SCP) model and the bi-directional relationships of its elements, the paper identifies the links between ICT adoption and market structure, innovation dynamics, and firm performance. A set of recommendations on how to further improve the actual scenario of e-business in the TLS industry is also presented. The model could also be implemented in Asian countries

Foreign competition and innovation: The mediating role of imitation

This study examines the extent to which foreign competition affects the innovation performance of domestic firms through imitation, given firms’ absorptive capacity. In analyzing longitudinal firm-level data from the U.K., we find a mediating effect of imitation on the relationship between foreign competition and local firms’ innovation performance, and an inverted U-shaped relationship between imitation and the innovation performance of local firms. Our findings further reveal that absorptive capacity moderates the mediating effect of imitation, diminishing innovation gains at moderate levels of imitation and mitigating the diminishing innovation performance at high levels of imitation