Exploring CRM effectiveness: an institutional theory perspective |
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Authors: | Bas Hillebrand Jurriaan J Nijholt Edwin J Nijssen |
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Institution: | (1) Institute for Management Research, Radboud University Nijmegen, Nijmegen, Netherlands;(2) Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands;(3) Industrial Engineering & Innovation Sciences, Eindhoven University of Technology, Eindhoven, Netherlands |
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Abstract: | This study identifies the potential contribution that institutional theory can make to understanding the success of marketing
practices. Based on institutional theory, we argue that the effectiveness of marketing practices decreases when firms are
motivated to adopt such practices under the influence of institutional pressures originating in firms’ environments. However,
alignment between a practice and a firm’s marketing strategy may buffer against these negative effects. We apply these insights
to the case of customer relationship management (CRM). CRM is considered an important way to enhance customer loyalty and
firm performance, but it has also been criticized for being expensive and for not living up to expectations. Empirical data
from 107 organizations confirm that, in general, adopting CRM for mimetic motives is likely to result in fewer customer insights
as a result of using this practice. Our study suggests that institutional theory has much to offer to the investigation of
the effectiveness of marketing practices. |
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