Firm Growth in Family Businesses—The Role of Entrepreneurial Orientation and the Entrepreneurial Activity

Previous studies show that growth is an important goal for businesses, but little is known of how the entrepreneurial orientation–performance relationship works in family businesses and how this differs from their nonfamily peers. We examine that and how entrepreneurial activity mediates the relationship in family and nonfamily businesses. Our results on 532 firms show that family businesses benefit from innovative orientation, which is both directly and indirectly associated with firm growth via entrepreneurial activity. This association does not exist in nonfamily businesses. Furthermore, risk taking does not influence family business growth even if it does in nonfamily businesses.     

Towards a Successful CRM Implementation in Banks: An Integrated Model

In recent years, customer relationship management (CRM) has been the favoured theme for numerous studies and reports. Yet, there is a lack of systematic empirical evidence regarding the critical success factors (CSFs) for the CRM implementation, the activities that are affected by the use of the CRM programmes, and their consequent performance outcomes. In this article, we document the role of the CRM programmes in the banking sector and identify marketing activities that are affected by CRM usage. Taking a sample of 159 banks that utilise a CRM system, we found a substantial positive effect of the CRM usage on relationships effectiveness and marketing objectives. The results of this study have major implications for marketing people, as they suggest the notion that the CRM critical success factors should be implemented holistically rather than piecemeal to achieve the full potential of the CRM. The findings also stress the central role of customer services in the successful implementation of CRM programmes within banks.     

Product Innovation in Family versus Nonfamily Firms: An Exploratory Analysis

How family firms manage product innovation remains an overlooked topic in existing business research. This happens despite the fact that family businesses play a crucial role across all economies, and they often use technological innovation to nurture their competitive advantage. By drawing upon the resource‐based view of the firm as well as agency, stewardship, and behavioral theories and using empirical evidence gathered through a multiple case study, the paper studies how and why the anatomy of the product innovation process differs between family and nonfamily firms. The analysis shows that family businesses differ from nonfamily ones as regards product innovation strategies and organization of the innovation process.     

The CRM process in retail and service sector firms in Japan: Loyalty development and financial return

Research on customer relationship management (CRM) in general has focused on the effects of customer satisfaction with CRM, customer retention and profit management, and the effects of CRM technique on performance. Conceptually, however, a sequence of effects of CRM is expected, from CRM implementation to financial performance, but this sequence has not been explored. Whilst several definitions of CRM have been proposed, this article defines CRM as relationship-development programmes based on IT. CRM is regarded as the integration of relationship technology (i.e. data consolidating and data mining) with loyalty schemes. Survey research was conducted in Japan in the retail and service industries to test three hypotheses: (1) a firm's relationship orientation has a positive effect on CRM implementation (data warehousing, data mining, using customer data for decision making); (2) CRM implementation has a positive effect on return on equity; and (3) CRM implementation has an indirect effect on return on equity, mediated by customisation. Using a structural equation model the first hypothesis was supported, but the third hypothesis was only partially supported. In these analyses a direct effect of CRM implementation on return on equity (ROE) was supported; however, a negative impact of customisation on ROE was found.     

Conceptual analysis and implementation of an integrated CRM system for service providers

Customer relationship management (CRM) has become a critical issue in services management. Ensuring customer satisfaction and maintaining long-term relationships with customers have become essential for survival amongst competitive service industries. However, few studies have attempted to integrate all relevant factors in a comprehensive model of CRM implementation. The current study addresses this need by proposing a conceptually integrated five-phase model that incorporates elements of CRM, the service-delivery process and customer satisfaction (represented by the extended American Customer Satisfaction Index (ASCI) model). This integrated model of CRM is assessed in an empirical study of 63 leading Taiwanese service firms distributed amongst eight service industries. The implementation levels of various phases of CRM are assessed in a range of service industries by means of a questionnaire survey and in-depth interviews. The results of this empirical study reveal the strengths and weaknesses of various industries in their implementation of CRM. These results also represent a useful benchmarking reference for service organisations that have lower implementation levels in some CRM practices.     

The Effect of Family Business Professionalization as a Multidimensional Construct on Firm Performance

In family business literature, business professionalization is often simplified into a binary characteristic, that is, the presence of a nonfamily manager. We contend that other professionalization features, which may act simultaneously, can influence firm performance. This study addresses professionalization as a multidimensional construct, as intended by general management literature, and assesses the impact on business performance based on these underlying dimensions. Using a representative sample of 523 private Belgian family businesses, we identify five different dimensions of the professionalization construct by means of an exploratory factor analysis. Further regression results revealed significant positive effects of increasing nonfamily involvement, implementing human resource control systems, and/or decentralizing authority on firm performance. However, nonfamily involvement only seems to improve firm performance if there is sufficient decentralization of authority and an average or even low amount of formal financial control systems.     

Country Effects on CRM Success

Abstract

Customer relationship management (CRM) adoption is growing at a dramatic pace in firms and is significantly impacting customer and business market behaviors. As a result, most firms have started developing and implementing CRM strategies. However, country effects on CRM strategy outcomes in international environments have not been discussed and are the focus of this paper. In this paper, we examine the impacts of marketing infrastructure and marketing institutions on the development of CRM strategies and success in the implementation of such strategies. Our framework has utility in understanding the impacts of country-specific factors in the outcomes of CRM Strategy.     

餐饮企业客户关系管理研究

客户是餐饮企业生存与发展的基础,客户关系管理可以提高餐饮企业的顾客忠诚度。当前,餐饮业客户关系管理还存在着对客户关系管理重视不够,对客户的服务意识不到位,吸引客户的营销手段单调,企业内部组织结构不完善,对企业的价值顾客群判断不准等问题。餐饮企业应利用CRM管理系统,了解顾客,并建立良好客户关系;加强员工培训,提升员工的服务素质;制定合理的价格,维系客户永久关系;树立顾客成本概念,通过提高客户满意度和忠诚度,达到提升客户价值和提升品牌形象的目的,从而实现企业利润最大化。     

A framework for customer relationship management strategy orientation support in higher education institutions

ABSTRACT

A number of generic Customer Relationship Management (CRM) implementation frameworks have been developed, yet no systematic framework has been developed to help HEIs orientate CRM strategy to align with university business strategies and stakeholder needs. This research iteratively develops the CRM Strategy Orientation Support (CRM-SOS) framework, which aims to support HEIs in orientating their strategic CRM system at the pre-implementation stage and align CRM strategy with the business strategy; thus, reducing the chance that HEIs will experience CRM implementation failure. To reach our proposed CRM-SOS framework, we employed Design Science Research (DSR) methodology steps by analysing UK HEIs specific CRM implementation case studies, conducting semi-structured HEIs-based interviews, followed by evaluation of the resulted framework by HEI Information Systems (IS) experts. We concluded with a new CRM-SOS framework for HEIs consisting of five stages. The framework can be used to personalise the stages until they fit the strategic outputs and match the top management KPIs. Although existing research agrees that intensive attention should be given to CRM planning, there is no consensus or developed framework, for use within HEIs, demonstrating how CRM strategy can be orientated to align with university strategies and customer needs.     

The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention

In recent years, customer relationship management (CRM) has been a topic of the utmost importance for scholars and managers. Despite the evidence provided by numerous empirical studies, many companies that have implemented CRM systems report unsatisfactory levels of improvement. This study analyzes what influence companies can expect CRM implementation to have on performance and how they can leverage its impact. The authors propose a conceptual model that investigates the link between technological and organizational implementations, as well as the implementations' interactions with management and employee support and CRM process-related performance. By measuring CRM performance in terms of the initiation, maintenance, and retention of customer relationships, the study provides a detailed picture of what CRM implementations are capable of achieving. The results of the empirical study, conducted across four industries and ten European countries, indicate that CRM implementation does not impact performance equally for different aspects of the CRM process, and that it has an impact only if adequately supported by the appropriate company stakeholders.     

Case Study of Customer Relationship Management (CRM) in the On-Line Affluent Financial Services Market

ABSTRACT

In the current period of constrained economic conditions, this study initiates an analysis of customer relationship management (CRM) on the Web sites of financial service businesses. Customer relationship management is a critical differential that enables competitive edge for businesses focused on the affluent customer market. Though investment in marketing, sales and service innovation is limited under existing conditions, the analysis of the study on large financial businesses indicates that the businesses enable higher commerce, content and context, but lower and generally inadequate communication, community, connection and customization design on their Web sites. The analysis, conducted as an assignment by adult graduate students in an information systems course, contributes important insight into the competitive dynamics of customer relationship management for Web empowered financial service businesses striving to service the demanding affluent market. This study furnishes an expanded framework to research customer relationship management of financial service businesses competing in the paradigm of the Web.     

‘What's so special about family business?’ An exploratory study of UK and Irish consumer experiences of family businesses

While family‐owned businesses are considered to have specific advantages in customer relationships, limited research has been conducted into how these abilities are developed or understood by the public. Consumers may indeed perceive family businesses differently from non‐family businesses, but this aspect has received scant attention within the literature. This paper sets out exploratory work designed to gain an understanding of Irish and UK consumer perceptions of family‐owned businesses, within both urban and rural communities. The study provides insight into the meaning of ‘familiness’ in consumers' minds when linked to family businesses, and explores the relationships and experiences that respondents have of family firms. Emerging issues include family business heritage, community bonds and social stewardship, consumer loyalty and generational transfer, distinction, choice and retail heterogeneity. The findings of this exploratory study suggest that researchers should be paying more attention to the positive aspects of family businesses within communities, and concludes with suggestions for future research to further extend this area of study.     

Strategically embedding CRM

Scepticism and disappointment have replaced initial enthusiasm about customer relationship management (CRM). The disappointing results of CRM projects are often related to difficulties that managers encounter in embedding CRM in their strategy and organisation structure. Fred Langerak and Peter C Verhoef believe that distinguishing between strategic and tactical CRM might lead to more effective understanding and implementation of CRM.     

Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures

This paper empirically explores a highly relevant, although poorly investigated topic: internationalization of family firms that operate in high-tech industries. Specifically, we compare internationalization of family and nonfamily entrepreneurial ventures in these industries. Relying on prior studies on internationalization of family firms, we speculate on how the specificities of high-tech industries shape the advantages and disadvantages of family entrepreneurial ventures in pursuing internationalization as compared with their nonfamily peers. In the empirical part of the paper, through a rigorous quantitative analysis of unique data from 264 Italian high-tech entrepreneurial ventures, we explore whether in high-tech industries family entrepreneurial ventures are more (or less) likely to pursue internationalization than their nonfamily counterparts. Surprisingly enough, our econometric estimates indicate that, in high-tech industries, family entrepreneurial ventures exhibit a higher internationalization propensity than their nonfamily peers.     

Empowering salespeople: Personal,managerial, and organizational perspectives

The traditional seven steps of personal selling have remained virtually unchanged since the early 1900s. Meanwhile, the actual roles and duties of salespeople have pushed far into customer relationship management (CRM). Psychologically and professionally, salespeople need greater empowerment for their expanding CRM responsibilities. However, empowerment is a complex process requiring several individual, managerial, and organizational changes for successful implementation. As part of the empowerment process for its salespeople, companies need to provide supporting structures, processes, and incentives for customer‐oriented behavior. At the same time, the Internet and other telecommunications advances in the macroenvironment are accelerating empowerment changes in personal selling—mainly on the customer side of the exchange. To effectively and efficiently carry out their growing yet still poorly defined CRM roles, salespeople need to be comprehensively empowered, trained, motivated, and rewarded. Companies that most effectively empower their salespeople should reap substantial rewards in profitability and loyalty from both their salespeople and customers. © 2006 Wiley Periodicals, Inc.     

People-driven processes in customer relationship management

Customer relationship management (CRM) is one of the most popular strategies for an organization to satisfy its customers and obtain growth profits. Much attention of the research to date, however, has been paid to strategy, implementation, and organization performance, with the people dimension in CRM being under-researched. This study attempts to investigate the importance of people-driven processes of CRM in organizations and identify factors affecting the effectiveness of people-driven CRM processes. A multiple case study approach was applied and in-depth interviews were conducted with managers from four case companies to identify the factors influencing the people-driven CRM processes. Four dependency factors affecting the effectiveness of people-driven processes were identified, including customer emotional needs, customer involvement, employee capabilities, and organizational customer-oriented culture.     

Family control,accounting misstatements,and market reactions to restatements: Evidence from China

We examine the impact of family control on the likelihood of accounting misstatements and on market reactions to subsequent restatements. Using a matched-firm approach, we find that family control overall reduces the incidence of misstatements, consistent with the notion that controlling families have a greater concern for reputation than nonfamily blockholders. However, compared to nonfamily firm restatements, restatements announced by family-controlled firms trigger significantly more negative market reactions. We attribute the more negative market reactions to the greater loss in reputation and higher investor scepticism of the credibility of corporate insiders for family firms than for nonfamily firms following restatements.     

Students,Patients, Citizens,and Believers as “Customers”: A Cross-National Exploratory Study

ABSTRACT

Executives in 94 large UK companies engaging in cause related marketing (CRM) completed a questionnaire concerning (i) their firms' approaches to the management and evaluation of CRM, (ii) the benefits perceived to accrue to the practice, and (iii) whether these businesses applied commercial rather than philanthropic principles when selecting CRM partners. It emerged that, in general, the sample firms employed mainly commercial criteria when choosing CRM projects, that selections were frequently influenced by employee opinion, and that most of the evaluation techniques conventionally used to appraise commercial sponsorship and advertising were also utilised to assess CRM programmes. Companies were reported to demand close and obvious links between their products and the activities of partner charities. Typically, they preferred to affiliate with well-known charities and tended to dislike “controversial” causes. In the main the respondents held low opinions of their charity partners' marketing abilities. The article concludes with a number of recommendations regarding the ways in which charities should formulate proposals when inviting businesses to participate in CRM programmes.     

Is blood always thicker than water? Family firm parents,kinship ties,and the survival of spawns

We theorize that due to their ability to draw upon the distinctive bonding and bridging social capital resources of their family firm parents, family member spawns have longer early survival times than nonfamily member spawns from family firms, which in turn should have longer early survival times than spawns from nonfamily firm parents. We also predict that the survival enhancing effects of family parent bonding and bridging social capital are conditional on the spatial, cognitive and social proximity between the parent and the spawn. Using a population wide sample of 114,837 spawns founded in Sweden between 2000 and 2007, we find that nonfamily member spawns survive longer than spawns from nonfamily firms, and that this survival enhancing effect is contingent on the spatial and social proximity between the spawn and its parent. We also find that spawns founded by family members, on average, do not survive longer than spawns from family firms founded by nonfamily members, and that greater spatial and cognitive distance even hurt the survival of family member spawns. We discuss the contributions of our research to the spawning, family firm, and entrepreneurship literatures.     

Corporate social responsibility disclosure and market value: Family versus nonfamily firms

We investigate the moderating role of family involvement in the relationship between corporate social responsibility (CSR) reporting and firm market value using a longitudinal archival data set in the French context. Our empirical results show that family firms report less information on their CSR duties than do nonfamily firms. However, market-based financial performance, as measured by Tobin's q, is positively related to CSR disclosure for family firms and negatively related to CSR disclosure for nonfamily firms. Family firms would benefit greatly from communicating commitment to CSR; specifically, they could obtain shareholders' endorsement more easily than nonfamily firms could.