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Customer relationship management and innovation capability: an empirical study

Ru‐Jen Lin (Graduate School of Business and Management, Lunghwa University of Science and Technology, Taoyuan, Taiwan, Republic of China)
Rong‐Huei Chen (Department of Business Administration, Lunghwa University of Science and Technology, Taoyuan, Taiwan, Republic of China)
Kevin Kuan‐Shun Chiu (Graduate School of Business and Management, Lunghwa University of Science and Technology, Taoyuan, Taiwan, Republic of China)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 2 February 2010

13603

Abstract

Purpose

The purpose of this paper is to investigate the effects of various dimensions of customer relationship management (CRM) on innovation capabilities. Five dimensions of CRM (information sharing, customer involvement, long‐term partnership, joint problem‐solving, and technology‐based CRM) and five aspects of innovation capability (product, process, administrative, marketing, and service innovations) are identified. The one‐to‐one associations between the two constructs are developed and verified.

Design/methodology/approach

Data from 107 Taiwanese computer manufacturers are collected. Multiple regression analysis is employed to examine the effects of CRM on innovation capabilities.

Findings

The following results are offered: computer manufacturers in Taiwan perform various levels of CRM and, consequently, display different levels of effects on each of the five innovation capabilities. Generally, firms are able to increase their innovation capability by ad hoc CRM; the relationship between customer involvement and process innovation; customer involvement and administrative innovation; and long‐term partnership and marketing innovation are not significant; and technology‐based CRM has positive effects on all five types of innovation.

Practical implications

The findings suggest that not all CRM activities contribute to innovation programs, which clearly indicates the need for applying other mechanisms, such as supplier integration, to form a complete innovation program. Managers should align the development of their supplier management and CRM practices with the desired innovation capability.

Originality/value

The one‐to‐one relationships between CRM practices and innovation capabilities have not been properly examined. The findings suggest the need for more research in this area, and the statistical results provide managers with useful guidelines for implementing appropriate CRM practices to develop specific innovation capabilities to respond to enhanced competitiveness.

Keywords

Citation

Lin, R., Chen, R. and Kuan‐Shun Chiu, K. (2010), "Customer relationship management and innovation capability: an empirical study", Industrial Management & Data Systems, Vol. 110 No. 1, pp. 111-133. https://doi.org/10.1108/02635571011008434

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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