Discussion and conclusion
This study has provided empirical justification for the proposed research framework which describes the relationships between CRM practices, organizational performance, and innovation among Iranian manufacturing firms. Our study is contrary to findings such as Reinartz et al. (2004) and Jayachandran et al. (2005) that CRM technology does not have a significant impact on organizational performance.
Also, the findings support existing studies from Sin et al. (2005), Lin et al. (2010) and Akroush et al. (2011) by empirically validating the CRM practices framework. Furthermore, this research shows that the validated CRM practices are applicable to developing countries such as Iran. This is important as previous CRM practices have been focused on Western countries or developed countries. CRM is touted as an imperative strategy to improve a firm’s innovation capability and to enhance a firm’s competitive advantage. Missing from the literature, however, is the knowledge of how these two strategic components can be integrated (Lin et al., 2010).Therefore, in this study in addition to the relationship between CRM practices and innovation capability of firms, in line with the study of Battor & Battor (2010) the missing link of innovation capability not previously conceptualised in the context of how CRM contributes to firm performance, has been considered.
One of the most important findings of this study is the lowest rank of technology -based CRM (β =0.301) .As IT and IS play an important role in the development and implementation of CRM (Ngai, 2005) this indicates the sampled Iranian organization do not pay enough attention to employ the IT and IS related topics addressed in CRM literature such as software, tools, systems, data mining and KM. Such a supportive role of IT includes database capabilities to collect and analyze customer information using statistical techniques such as data mining. This helps transform customer data into useful information and knowledge, which is considered to be a key organizational asset that is necessary in today’s customer-centered business environment (Rygielski et al., 2002).