The Social Sciences

Year: 2016
Volume: 11
Issue: 11
Page No. 2836 - 2844

Analyzing the Mediating Effects of Market Orientation on CRM Practices and Organizational Performance

Authors : Siti Hajar Mohamad, Haslinda Musa, Norfaridatul Akmaliah Othman, Juhaini Jabar and Izaidin Abdul Majid

Abstract: Customer Relationship Management (CRM) is an important topic discussed by managers and scholars in recent years. Despite the evidence provided by numerous empirical studies, organizations that practice market information and implement market orientation will gain more competitive advantage and dynamic environments. Based on theoretical considerations, this study investigates the mediating effects of market orientation on CRM practices and organizational performance of the food manufacturing industry. A structural equation modelling was used to test a developed model on a sample of 364 organizations. The findings depict that infrastructural CRM resources and technological CRM resources affect the market orientation which in turn determine organizational performance. Further test showed that market orientation fully mediates the relationship between infrastructural CRM resources and organizational performance while in contrast the relationship between technological CRM resources and organizational performance only provides partial mediation. The implication for managerial concern which food manufacturer that practiced CRM in order to get better organizational performance was partly dependent on using market orientation to maintain and create long term channel relationship. The impact of market orientation as a mediating medium in this study provides ample opportunities for further research on marketing issue.

How to cite this article:

Siti Hajar Mohamad, Haslinda Musa, Norfaridatul Akmaliah Othman, Juhaini Jabar and Izaidin Abdul Majid, 2016. Analyzing the Mediating Effects of Market Orientation on CRM Practices and Organizational Performance. The Social Sciences, 11: 2836-2844.

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