A CRM-based pathway to improving organisational responsiveness: an empirical study

Abstract

Successful organisations are characterised by how they adjust their organisational practices in response to the external environment. The concept of organisational responsiveness has been used to describe this ability to respond to market changes. The role played by customer relationship management (CRM) in supporting this process is considered, with a focus on the contribution made by how CRM is approached and embedded in the organisation, effective information systems, and staff empowerment. Drawing on data from an empirical study of financial services firms in Brazil, the findings show that improved organisational responsiveness is more effectively enabled by a ‘CRM approach – systems effectiveness – staff empowerment’ pathway, rather than the simple ‘CRM approach – systems implementation’ pathway adopted by many firms. The theoretical and managerial implications of the findings are explored.