Skip to main content
SpringerLink
Log in

Customer relationship management and hotel performance: the mediating influence of marketing capabilities—evidence from the Malaysian hotel industry

  • Original Research
  • Published:
Information Technology & Tourism Aims and scope Submit manuscript

Abstract

The aim of this study is to assess the influence of customer relationship management (CRM) on marketing capabilities (planning and implementation) and organizational performance, through an analysis of the hotel industry in Malaysia. The study uses partial least squares to examine the mediating influence of marketing capabilities on the association between CRM and hotel performance. A survey of hotel managers was conducted, and a total of 152 usable questionnaires were obtained. The results enrich the literature by showing a positive relationship between CRM and hotel performance; they also indicate that marketing planning and implementation play a mediating role in the relationship between CRM and hotel performance. From the practical perspective, by understanding the relationship among the constructs in the research model, hotel managers could maximize use of their internal resources to improve organizational performance.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Abdullateef AO (2011) The impact of customer relationship management on caller satisfaction in customer contact centers: Evidence from Malaysia. Unpublished PhD thesis, UUM, Malaysia

  • Abdullateef AO, Mokhtar SS, Yusoff RZ (2010) The impact of CRM dimensions on call center performance. Int J Comput Sci Netw Secur 10(12):184–195

    Google Scholar 

  • Akroush MN, Dahiyat SE, Gharaibeh HS, Abu-Lail BN (2011) Customer relationship management implementation: an investigation of a scale’s generalizability and its relationship with business performance in a developing country context. Int J Commerce Manag 21(2):158–190. doi:10.1108/10569211111144355

    Article  Google Scholar 

  • Anderson RE, Swaminathan S (2011) Customer satisfaction and loyalty in e- markets: a PLS path modeling approach. J Mark Theory Pract 19(2):221–234. doi:10.2753/MTP1069-6679190207

    Article  Google Scholar 

  • Attharangsun N, Ussahawanitchakit P (2008) The antecedents and consequences of CRM effectiveness in health service industry of Thailand. Rev Bus Res 8(4):1–16

    Google Scholar 

  • Awang KW, Ishak NK, Mohd Radzi S, Taha AZ (2008) Environmental variables and performance: evidence from the hotel industry in Malaysia. Int J Econ Manag 2(1):59–79

    Google Scholar 

  • Azizi S, Movahed SA, Khah MH (2009) The effect of marketing strategy and marketing capability on business performance. Case study: Iran’s medical equipment sector. J Med Mark Device Diagn Pharm Mark 9(4):309–317. doi:10.1057/jmm.2009.33

    Article  Google Scholar 

  • Bagozzi RP, Yi Y (1988) On the evaluation of structural equation models. J Acad Mark Sci 16(1):74–94. doi:10.1007/BF02723327

    Article  Google Scholar 

  • Baran RJ, Galka RJ, Strunk PD (2008) Principles of customer relationship management. Thomson, USA

    Google Scholar 

  • Barney JB (1991) Firm resources and sustained competitive advantage. J Manag 17(1):99–120. doi:10.1177/014920639101700108

    Google Scholar 

  • Becker JU, Greve G, Albers S (2009) The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention. Int J Res Mark 26(3):207–215. doi:10.1016/j.ijresmar.2009.03.006

    Article  Google Scholar 

  • Boulding W, Staelin R, Ehret M, Johnston WJ (2005) A customer relationship management roadmap: what is known, potential pitfalls, and where to go. J Mark 69(4):155–166. doi:10.1509/jmkg.2005.69.4.155

    Article  Google Scholar 

  • Business Monitor International (2011) Malaysia Tourism Report, Q2. London

  • Castellanos-Verdugo M, Oviedo-García M, Roldán JL, Veerapermal N (2009) The employee-customer relationship quality: antecedents and consequences in the hotel industry. Int J Contemp Hosp Manag 21(3):251–274. doi:10.1108/09596110910948288

    Article  Google Scholar 

  • Chang TL (1996) Cultivating global experience curve advantage on technology and marketing capabilities. Int Mark Rev 13(6):22–42. doi:10.1108/02651339610151908

    Article  Google Scholar 

  • Chang W, Park JE, Chaiy S (2010) How does CRM technology transform into organizational performance? A mediating role of marketing capability. J Bus Res 63(8):849–855. doi:10.1016/j.jbusres.2009.07.003

    Article  Google Scholar 

  • Chen IJ, Popovich K (2003) Understanding customer relationship management (CRM): people, process and technology. Bus Process Manag J 9(5):672–688. doi:10.1108/14637150310496758

    Article  Google Scholar 

  • Chin WW (1998a) Issues and opinion on structural equation modeling. MIS Q 22(1):1–8

    Article  Google Scholar 

  • Chin WW (1998b) The partial least squares approach for structural equation modeling. In: Marcoulides GA (ed) Modern methods for business research. Lawrence Erlbaum Associates, London, pp 295–336

    Google Scholar 

  • Chin WW (2010) How to write up and report PLS analyses. In: Esposito V et al (eds) Handbook of partial least squares. Springer, New York, pp 655–688

    Chapter  Google Scholar 

  • Cizmar S, Weber S (2000) Marketing effectiveness of the hotel industry in Croatia. Int J Hosp Manag 19(3):227–240. doi:10.1016/S0278-4319(00)00020-7

    Article  Google Scholar 

  • Daghfous A, Barkhi R (2009) The strategic management of information technology in UAE hotels: an exploratory study of TQM, SCM, and CRM implementations. Technovation 29(9):588–595. doi:10.1016/j.technovation.2009.05.007

    Article  Google Scholar 

  • Day GS (1994) The capabilities of market-driven organizations. J Mark 58:37–52. doi:10.2307/1251915

    Article  Google Scholar 

  • Dev CS, Olsen MD (2000) Marketing challenges for the next decade. Cornell Hotel Restaurant Admin Q 41(1):41–47

    Article  Google Scholar 

  • Dimitriadis S, Stevens E (2008) Integrated customer relationship management for service activities: an internal/external gap model. Manag Service Qual 18(5):496–511. doi:10.1108/09604520810898857

    Article  Google Scholar 

  • Dutu C, Hălmăjan H (2011) The effect of organizational readiness on CRM and business performance. Int J Comput 1(5):106–114

    Google Scholar 

  • Eisenhardt KM, Martin JA (2000) Dynamic capabilities: what are they? Strategic Manag J 21(10–11):1105–1121

    Article  Google Scholar 

  • Fornell C, Bookstein FL (1982) Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. J Mark Res 19(4):440–452. doi:10.2307/3151718

    Article  Google Scholar 

  • Fornell C, Larcker DF (1981) Evaluating structural equation models with unobservable variables and measurement error. J Mark Res 18(1):39–50. doi:10.2307/3150979

    Article  Google Scholar 

  • Garrido-Moreno A, Padilla-Meléndez A (2011) Analyzing the impact of knowledge management on CRM success: the mediating effects of organizational factors. Int J Inf Manag 31(5):437–444. doi:10.1016/j.ijinfomgt.2011.01.002

    Article  Google Scholar 

  • Gartner Group (2003) CRM success is in strategy and implementation, not software. http://www.gartner.com

  • Goldenberg BJ (2008) CRM in real time: empowering customer relationships. Information Today Inc, New Jersey

    Google Scholar 

  • Grant RM (1991) The resource-based theory of competitive advantage: Implications for strategy formulation. Caledonia Manag Rev 33(3):114–135. doi:10.2307/41166664

    Article  Google Scholar 

  • Gustafsson A, Johnson MD, Roos I (2005) The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. J Mark 69(4):210–218. doi:10.1509/jmkg.2005.69.4.210

    Article  Google Scholar 

  • Hair JF, Ringle CM, Sarstedt M (2013) Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance. Long Range Plan 46(1–2):1–12. doi:10.1016/j.lrp.2013.01.001

    Article  Google Scholar 

  • Hair JF Jr, Hult GTM, Ringle C, Sarstedt M (2014) A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications, Thousand Oaks

    Google Scholar 

  • Hamid H (2009) Toward unfolding CRM implementation in Pakistan: a case study. In: 17th European conference on information systems, Islamabad. http://is2.lse.ac.uk/asp/aspecis/20090249.pdf. Retrieved 28 June 2011

  • Hayes AF (2013) Introduction to mediation, moderation, and conditional process analysis: a regression-based approach. Guilford Press

  • Hayes AF, Preacher KJ (2014) Statistical mediation analysis with a multi categorical independent variable. Br J Math Stat Psychol 67(3):451–470. doi:10.1111/bmsp.12028

    Article  Google Scholar 

  • Hendricks KB, Singhal VR, Stratman JK (2007) The impact of enterprise systems on corporate performance: a study of ERP, SCM, and CRM system implementations. J Oper Manag 25(1):65–82. doi:10.1016/j.jom.2006.02.002

    Article  Google Scholar 

  • Henseler J, Ringle CM, Sinkovics RR (2009) The use of partial least squares path modeling in international marketing. Adv Int Mark 12(1):277–320

    Google Scholar 

  • Hsin Chang H, Ku P (2009) Implementation of relationship quality for CRM performance: acquisition of BPR and organizational learning. Total Qual Manag 20(3):327–348. doi:10.1080/14783360902719758

    Article  Google Scholar 

  • Hulland J (1999) Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Manag J 20(2):195–204. http://www.jstor.org/stable/3094025

  • Iacobucci D, Saldanha N, Deng X (2007) Meditation on mediation: evidence that structural equations models perform better than regressions a meditation on mediation. J Consum Psychol 17(2):140–154

    Article  Google Scholar 

  • Jusoh R (2008) Environmental uncertainty, performance, and the mediating role of balanced scorecard measures use: evidence from Malaysia. Int Rev Bus Res Papers 4(2):116–135

    Google Scholar 

  • Kaplan RS, Norton DP (1992) The balanced scorecard: measures that drive performance. Harvard Business Review, January–February, pp 71–79

  • Kaplan RS, Norton DP (2004) Measuring the strategic readiness of intangible assets. Harvard Business Review 82(2):52–63

    Google Scholar 

  • Kasim A, Minai B (2009) Linking CRM strategy, customer performance measures and performance in the hotel industry. Int J Econ Manag 3(2):297–316. http://econ.upm.edu.my/ijem/vol3_no2.htm

  • Kim J, Suh E, Hwang H (2003) A model for evaluating the effectiveness of CRM using the balanced scorecard. J Interact Mark 17(2):5–19. doi:10.1002/dir.10051

    Article  Google Scholar 

  • Kincaid JW (2003) Customer relationship management: getting it right!. Upper Saddle River, New Jersey

    Google Scholar 

  • King SF, Burgess TF (2008) Understanding success and failure in customer relationship management. Ind Mark Manag 37(4):421–431. doi:10.1016/j.indmarman.2007.02.005

    Article  Google Scholar 

  • Kohli AK, Jaworski BJ (1990) Market orientation: the construct, research propositions, and managerial implications. J Mark 54(April):1–18. http://www.jstor.org/stable/1251866

  • Kotler P (2002) When to use CRM and when to forget it! Paper presented at the Academy of Marketing Science, Sanibel Harbour Resort and Spa

  • Krasnikov A, Jayachandran S, Kumar V (2009) The impact of customer relationship management implementation on cost and profit efficiencies: evidence from the US commercial banking industry. J Mark 73(6):61–76. doi:10.1509/jmkg.73.6.61

    Article  Google Scholar 

  • Lin Y, Su HY (2003) Strategic analysis of customer relationship management—a field study on hotel enterprises. Total Qual Manag 14(6):715–731. doi:10.1080/1478336032000053843

    Article  Google Scholar 

  • Lo AS, Stalcup LD, Lee A (2010) Customer relationship management for hotels in Hong Kong. Int J Contemp Hosp Manag 22(2):139–159. doi:10.1108/09596111011018151

    Article  Google Scholar 

  • Luck D, Stephenson ML (2009) An evaluation of the significant elements of customer relationship management within the hotel industry. Tour Today 9:7–26

    Google Scholar 

  • Luo X, Li H, Zhang J, Shim JP (2010) Examining multi-dimensional trust and multi-faceted risk in initial acceptance of emerging technologies: an empirical study of mobile banking services. Decis Support Syst 49(2):222–234. doi:10.1016/j.dss.2010.02.008

    Article  Google Scholar 

  • Malaysian Association of Hotels (MAH) (2012) Membership Directory 2012 (February), Kuala Lumpur

  • Mithas S, Krishnan MS, Fornell C (2005) Why do customer relationship management applications affect customer satisfaction? J Mark 69(October):201–209. doi:10.1509/jmkg.2005.69.4.201

    Article  Google Scholar 

  • Mohammad AA, Rashid B, Tahir S (2013) Assessing the influence of customer relationship management (CRM) dimensions on organization performance: an empirical study in the hotel industry. J Hosp Tour Technol 4(3):228–247. doi:10.1108/JHTT-01-2013-0002

    Article  Google Scholar 

  • Mohammed AA, Rashid BB, Tahir SB (2014) Customer relationship management (CRM) Technology and organization performance: is marketing capability a missing link? An empirical study in the malaysian hotel industry. Asian Soc Sci 10(9):197

    Article  Google Scholar 

  • Morgan NA, Zou S, Vorhies DW, Katsikeas CS (2003) Experiential and informational knowledge, architectural marketing capabilities, and the adaptive performance of export ventures. Decis Sci 34(2):287–321. doi:10.1111/1540-5915.02375

    Article  Google Scholar 

  • Narver JC, Slater SF (1990) The effect of a market orientation on business profitability. J Mark 45(4):20–36. http://www.jstor.org/stable/1251757

  • Nasution HN, Mavondo FT (2008) Organizational capabilities: antecedents and implications for customer value. Eur J Mark 42(3/4):477–501

    Article  Google Scholar 

  • Ngai EWT (2005) Customer relationship management research (1992–2002): an academic literature review and classification. Mark Intell Plan 23:582–605. doi:10.1108/02634500510624147

    Article  Google Scholar 

  • Noble CH, Mokwa MP (1999) Implementing marketing strategies: developing and testing a managerial theory. J Mark 63(4):57–73. doi:10.2307/1251974

    Article  Google Scholar 

  • Nunes JC, Dréze X (2006) Your loyalty program is betraying you. Harvard Bus Rev 84(4):124–131

    Google Scholar 

  • Özgener Ş, İraz R (2006) Customer relationship management in small–medium enterprises: the case of Turkish tourism industry. Tour Manag 27(6):1356–1363. doi:10.1016/j.tourman.2005.06.011

    Article  Google Scholar 

  • Payne A, Frow P (2005) A strategic framework for customer relationship management. J Mark 69(4):167–176. doi:10.1509/jmkg.2005.69.4.167

    Article  Google Scholar 

  • Piskar F, Faganel A (2009) A successful CRM implementation project in a service company: case study. J Manag Inf Hum Resour 42(5):199–208. doi:10.2478/v10051-009-0017-y

    Google Scholar 

  • Poon WC, Low KLT (2005) Are travelers satisfied with Malaysian hotels? Int J Contemp Hosp Manag 17(3):217–227. doi:10.1108/09596110510591909

    Article  Google Scholar 

  • Preacher KJ, Hayes AF (2008) Asymptotic and resampling strategies for assessing and comparing indirect effects in simple and multiple mediator models. Behav Res Methods 40:879–891. doi:10.3758/BRM.40.3.879

    Article  Google Scholar 

  • Pulendran S, Speed R (1996) Planning and doing: The relationship between marketing planning styles and market orientation. J Mark Manag 12(1–3):53–68. doi:10.1080/0267257X.1996.9964400

    Article  Google Scholar 

  • Ramani G, Kumar V (2008) Interaction orientation and firm performance. J Mark 72(1):27–45. doi:10.1509/jmkg.72.1.27

    Article  Google Scholar 

  • Razalli MR (2008) The consequences of service operations practice and service responsiveness on hotel performance: examining hotel in Malaysia. Unpublished PhD thesis, University Sains Malaysia, Malaysia

  • Reimann M, Schilke O, Thomas JS (2010) Customer relationship management and firm performance: the mediating role of business strategy. J Acad Mark Sci 38(3):326–346. doi:10.1007/s11747-009-0164-y

    Article  Google Scholar 

  • Reinartz W, Krafft M, Hoyer WD (2004) The customer relationship management process: its measurement and impact on performance. J Mark Res 41(3):293–305. doi:10.1509/jmkr.41.3.293.35991

    Article  Google Scholar 

  • Reinartz W, Haenlein M, Henseler J (2009) An empirical comparison of the efficacy of covariance based and variance based SEM. Int J Res Mark 26(4):332–344. doi:10.1016/j.ijresmar.2009.08.001

    Article  Google Scholar 

  • Richards KA, Jones E (2008) Customer relationship management: finding value drivers. Ind Mark Manag 37(2):120–130. doi:10.1016/j.indmarman.2006.08.005

    Article  Google Scholar 

  • Rigby DK, Reichheld FF, Schefter P (2002) Avoid the four perils of CRM. Harvard Bus Rev 80(2):101–109

    Google Scholar 

  • Roberts ML, Liu RR, Hazard K (2005) Strategy, technology and organisational alignment: key components of CRM success. J Database Mark Custom Strategy Manag 12(4):315–326. doi:10.1057/palgrave.dbm.3240268

    Article  Google Scholar 

  • Ryals LJ (2005) Making customer relationship management work: the measurement and profitable management of customer relationships. J Mark 69(4):252–261. doi:10.1509/jmkg.2005.69.4.252

    Article  Google Scholar 

  • Sigala M (2005) Integrating customer relationship management in hotel operations: managerial and operational implications. Int J Hosp Manag 24(3):391–413

  • Sin LY, Alan CB, Yim FH (2005) CRM: conceptualization and scale development. Eur J Mark 39(11/12):1264–1290. doi:10.1108/03090560510623253

    Article  Google Scholar 

  • Slotegraaf RJ, Dickson PR (2004) The paradox of a marketing planning capability. J Acad Mark Sci 32(4):371–385. doi:10.1177/0092070304265217

    Article  Google Scholar 

  • Soch H, Sandhu HS (2008) Does customer relationship management activity affect firm performance? Global Bus Rev 9(2):189–206. doi:10.1177/097215090800900202

    Article  Google Scholar 

  • Srinivasan R, Moorman C (2005) Strategic firm commitments and rewards for customer relationship management in online retailing. J Mark 69(4):193–200. doi:10.1509/jmkg.2005.69.4.193

    Article  Google Scholar 

  • Srivastava RK, Fahey L, Christensen HK (2001) The resource-based view and marketing: the role of market- based assets in gaining competitive advantage. J Manag 27(6):777–802

    Google Scholar 

  • Stockdale R (2007) Managing customer relationships in the self-service environment of e-tourism. J Vacat Mark 13(3):205–219. doi:10.1177/1356766707077688

    Article  Google Scholar 

  • Tourism Malaysia (2013) Tourism Malaysia-Statistics. http://corporate.tourism.gov.my/research.asp?page=facts_figures. Retrieved 26 April 2013

  • Tourism Malaysia (2016) Tourism Malaysia-statistics. http://www.tourism.gov.my/statistics. Retrieved 3 Jan 2016

  • Valerie F (2012) Re-discovering the PLS approach in management science. Management 15(1):101–123

    Google Scholar 

  • Verma S, Chaundhuri R (2009) Effect of CRM on customer satisfaction in service sector in India. J Mark Commun 5(2):55–69

    Google Scholar 

  • Vogt CA (2011) Customer relationship management in tourism: management needs and research applications. J Travel Res 50(4):356–364. doi:10.1177/0047287510368140

    Article  Google Scholar 

  • Vorhies DW, Morgan NA (2005) Benchmarking marketing capabilities for sustainable competitive advantage. J Mark 69(1):80–94. doi:10.1509/jmkg.69.1.80.55505

    Article  Google Scholar 

  • Vorhies DW, Morgan RE, Autry CW (2009) Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance. Strategic Manag J 30(12):1310–1334. doi:10.1002/smj.798

    Article  Google Scholar 

  • Wilcox PA, Gurau C (2003) Business modeling with UML: the implementation of CRM system for online retailing. J Retail Consum Services 10:181–191

    Article  Google Scholar 

  • Wu SI, Hung JM (2007) The performance measurement of cause-related marketing by balance scorecard. Total Qual Manag 18(7):771–791. doi:10.1080/14783360701349831

    Article  Google Scholar 

  • Wu SI, Li PC (2011) The relationships between CRM, RQ and CLV based on different hotel preferences. Int J Hosp Manag 30(2):262–271. doi:10.1016/j.ijhm.2010.09.011

    Article  Google Scholar 

  • Wu SI, Lu CL (2012) The relationship between CRM, RM, and business performance: a study of the hotel industry in Taiwan. Int J Hosp Manag 31(1):276–285. doi:10.1016/j.ijhm.2011.06.012

    Article  Google Scholar 

  • Xu M, Walton J (2005) Gaining customer knowledge through analytical CRM. Ind Manag Data Syst 105(7):955–972. doi:10.1108/02635570510616139

    Article  Google Scholar 

  • Yen FL, Othman M (2011) Data envelopment analysis to measure efficiency of hotels in Malaysia. SEGi Rev 41(1):25–36

    Google Scholar 

  • Yim FHK, Anderson RE, Swaminathan S (2004) Customer relationship management: its dimensions and effect on customer outcomes. J Person Selling Sales Manag 24(4):263–278

    Google Scholar 

  • Zhao X, Lynch JG, Chen Q (2010) Reconsidering Baron and Kenny: myths and truths about mediation analysis. J Consum Res 37:197–206. doi:10.1086/651257

    Article  Google Scholar 

  • Zikmund WG (2003) Business research methods. South-Western, Oklahoma

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Faculty of Administrative School of Tourism, Hospitality and Environmental Management, Univerisiti Utara Malaysia, Sintok, Malaysia

    Abdul Alem Mohammed, Basri B. Rashid & Shaharuddin B. Tahir

Authors
  1. Abdul Alem Mohammed
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Basri B. Rashid
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Shaharuddin B. Tahir
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Abdul Alem Mohammed.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Mohammed, A.A., Rashid, B.B. & Tahir, S.B. Customer relationship management and hotel performance: the mediating influence of marketing capabilities—evidence from the Malaysian hotel industry. Inf Technol Tourism 17, 335–361 (2017). https://doi.org/10.1007/s40558-017-0085-4

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40558-017-0085-4

Keywords

Search

Navigation