• DOI:10.20431/2349-0349.0502007
• Corpus ID: 56406982

A Multidimensional CRM Approach for Enhancing Marketing Innovation Capabilities of Construction Companies Using Structural Equation Modeling

@inproceedings{Ahmed2017AMC,
  title={A Multidimensional CRM Approach for Enhancing Marketing Innovation Capabilities of Construction Companies Using Structural Equation Modeling},
  author={Tarek Taha Ahmed},
  year={2017}
}

• Tarek Taha Ahmed
• Published 2017
• Business

Despite, customer relationship management (CRM) has reengineered the traditional marketing practices and recently gained wide attention in business and literature as an essential approach for achieving competitive advantage and profitability few works empirically investigated the impact of implementing CRM on marketing innovation capabilities in construction industry and particularly in developing countries context. In responding to this call, the current study aimed at helping to narrow the existing research gap in the literature and contribute to the accumulated knowledge by (1) empirically examining the effects of implementing the new dimensions of customer relationships on enhancing marketing innovation capabilities. (2) assessing the mediating role of CRM readiness in the relationship between CRM implementation and marketing innovation capability; (3) developing and validating a structural equation model for predicting the construction companies' marketing innovation capabilities; and (4) determining the extent to which the new multidimensional approach of CRM is actually applied in construction industry. A multi-stage research methodology was utilized, combining quantitative and qualitative methodologies to validate the research model and empirically test the hypothesized relationships. The research design involved a cross-sectional national sample survey for data collection during September to November 2016 (n=186). The developed questionnaire was pretested and feedback from the pre-test and the panel of experts used to revise the survey instrument. The reliability analysis was taken for each construct and the results showed that the value of Cronbach’s alpha of every construct is significantly higher than the reliability acceptable level (ranging from 0.81 to 0.94). Also exploratory factor analysis was used to evaluate the construct validity and the results demonstrate acceptable standard. The evidence of a good fit, reliability and validity indicated that the measurement model deemed appropriate for testing the structural model that demonstrated highly explanatory power. The results indicated that strengthen the completeness of CRM new dimensions can establish lifetime value based on sustainable relationship and in turn enhance construction company competitive advantage and marketing innovation capability. As the current research offered a multidimensional approach of CRM differs than the traditional perspective of CRM, the results can help practitioners and construction companies to develop more customized CRM practices as well as overcoming the barriers of both organizational and technical CRM readiness. Unlike previous studies with similar objectives, this study taken a further significant step in contributing to both theory and practice and expand the research scope through integrating the most critical antecedent predictors, into one framework subject to examination for validation and relationship. Therefore, the structural research model contained variables that have not been examined simultaneously.