The effect of customer relationship management adoption on organizational performance in business-to-business setting

Abstract

The main purpose of this study is to investigate the effects of customer relationship management (CRM) practices on customer satisfaction and firm performance in business-to-business markets. The model developed for this purpose is tested empirically through data obtained from Turkish companies. The results indicate that CRM adoption has a significant positive effect on both customer satisfaction and organizational performance. It is also observed that CRM adoption significantly affects organizational marketing performance, but not financial performance. Additionally, the results reveal that enhanced customer satisfaction leads to better organizational performance in business-to-business organization. This study contributes to existing literature in terms of new variables in the operationalization of CRM adoption in business-to-business markets, and the novel investigation of the CRM concept in business-to-business organizations.