The Mediating Role of Customer Orientation Strategy on the Relationship Between CRM Technology and Hotel Performance

Abdul Alem Mohammed, Basri Rashid, Shaharuddin Tahir

Abstract


Despite being acknowledged as an important element for business success, Customer Relationship Management (CRM) technology there seems to be inadequate study about the link between CRM technology and companies’ performance particularly in the Malaysian hotel industry. This paper strives to propagate the study of CRM technology in the hotel industry, by assessing the mediating role of customer orientation strategy on the CRM-performance link. Data for this study was collected through a survey and analyzed using the Partial Least Squares (PLS) method. The results indicate that CRM technology directly influences hotel performance and that the customer orientation strategy mediates the relationship between CRM and hotel performance. Hence it is recommended that hotel managers focus on customer orientation strategy in order to induce CRM technology for favorable business accomplishment.


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