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Customer Relationship Management Constructs Initiating Successful e-business Strategy for Service-based Companies



M. Jamalzadeh, N. Behravan, A. Yusefzadeh Markhali and S. Faramarzi Jouya
 
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ABSTRACT

With blooming of Internet and information technology proliferation, notion “e-business” and e-strategy become a core objective for service industries. So, it is imperative to acknowledge e-business strategy as a predecessor requirement for success of companies operating under electronic setting. Customer Relationship Management (CRM), however, plays critical role in this context area. As such, the main purpose of this study is built on CRM constructs shaping e-strategy towards successful e-business within service industry sector. The study sought presenting comprehensive insights on e-strategies and the importance of developing an e-strategy among the service based companies. The multiple e-business strategy and e-strategy creation procedure were explored and its building block along with CRM constructs including process factor, people and technology factor was introduced. The empirical evidences revealed direct association between the CRM constructs and creating successful e-business strategy within the service industry section. Despite the strong correlation between the constructs, emphasizing on process factor was revealed to be more effective while seeking successful e-business strategy within service sector.

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M. Jamalzadeh, N. Behravan, A. Yusefzadeh Markhali and S. Faramarzi Jouya, 2013. Customer Relationship Management Constructs Initiating Successful e-business Strategy for Service-based Companies. Journal of Applied Sciences, 13: 60-69.

DOI: 10.3923/jas.2013.60.69

URL: https://scialert.net/abstract/?doi=jas.2013.60.69
 
Received: September 11, 2012; Accepted: November 21, 2012; Published: February 01, 2013



INTRODUCTION

The Internet has become an imperative part of human life and also business as well. There is a colossal revolution in terms of buying and selling caused by e-business and e-commerce throughout the world. Enterprises are not the only participant of e-business, but all business can also participate in e-business. As the information technology has been growing exponentially since recent decades, we enter through new era which is called information economy and e-business consider as corner stone for all ventures (Zeng et al., 2005). e-business is growing rapidly with more than three million new websites appearing in the Internet every month (Grzywaczewski et al., 2010). So, it is hard to ignore such obvious matter by any business. However, there still exist many enterprises which are sitting on the fence to apply e-business in their organization (Zeng et al., 2005). Business competition now changes its gear towards nations from individuals. Economy and Information and Communication Technologies (ICT) have strong interdependency which is necessary for both economy and business environment. There is a rigid struggle among the World markets, which is fundamentally based on online applications. Apart from competition the fast development of e-business needs all countries’ coordination which would bring benefits for all partners (Hu, 2010). Hanafizadeh and Nikabadi (2011) showed that market development to increase revenue, cost reduction and customer relationship is the most benefits which ranked regarding to e-business and using the Internet based technologies. Nowadays e-business and e-commerce via internet have brought efficient supply chains and boost firms’ productivity alongside with providing a wide accessibility to customers and enable business to go further beyond their traditional boundaries and amend their product or service offerings based on targeted customer and their specific needs (Kapurubandara et al., 2004).

e-business, or an internet business, may be defined as the application of Information and Communication Technologies (ICT) in support of all the activities of business (Beynon-Davies, 2004) and helps organizations match with new regulation in terms of more effective business. Rigorous implementation of e-business into organization can generate new opportunities and benefits for diverse range of companies regardless of their activities and sizes. In general, corporations will be able to create global charisma and extent their business borders by use of Internet technology. The fact that “e-business is the same as business” is much acceptable among stakeholder, so it leads corporations to concentrate on build and introduce a comprehensive e-strategy to make the business achieve its both short term and long term objectives (Phan, 2003). An e-business strategy is introduced as a tool or methodology through which business organizations employ to plan and fulfill their e-business goals. The companies vision and mission can modified and altered by e-business strategy through providing attractive aspires, revising outdated strategies and introducing new mechanisms to accomplish e-business projects. There is a big financial market and high shareholders value for companies who effectively apply e-business strategy into their company broad strategy. The body of literature Fink (2006) stated that a business strategy that fails to recognize the e-business potential is destined to fail. Developing an e-business strategy is crucially essential for business. Increasingly, the structure and the components of this strategy can define a business status quo and where the business is going to be in future. Acknowledge of e-business has inducted new rules in market environment and changed ICT roles, this business era provides information infrastructure and a corner stone to carrying out most economic activities (Spremic and Vuksic, 2005).

In order to exploit the global online market, there is no need to necessarily come up with a mega solution such as Amazon.com or eBay. Different business models and strategies combined with new thinking can do wonders to provide on-line services to millions of customers globally (Lukaszewski, 2010). Nowadays, the product life cycle has been becoming shorter in markets in e-business milieu. As a result of these ongoing changes the product designs are more rely on the need of market that is indicate the significant reliance on customer demand than product prediction. The taste of customers is changing day after days and they are not accepting whatever products are presented by corporations. Customers anticipate those products which are well-matched with their needs. Thus, these demand based markets requires high level of customer relationship management and create a competitive environment which is convincing companies to equip their business processes by current technologies such as online driven one (Cao et al., 2006). Basically, e-evolution has an extensive effect in each section of companies and e-strategy can be applied throughout every industry hence develops the general life quality of people who are living wherever in this world. The ways of trading and business now are changed by advent of Information Communications Technology (ICT) through e-business strategy. In this regards CRM based technologies have been developed in many countries which is changing their strategies and improving their infrastructures to take utmost advantages from existed new technologies in way that expand their business and reach new markets (Kapurubandara et al., 2004). With regard to CRM integration, firms need to develop better partnership relationships with customers as well as trading partners through continuous collaboration and building trust-based alliances (Chang and Graham, 2010). Thus, this study strives to investigate an integrated CRM model within online environment building successful e-strategy for the firms.

e-BUSINESS STRATEGIES

e-business multiple view: e-business has been mentioned frequently everywhere nowadays. The thing that might be very surprising is usage of the term out of its context. People regardless to its concept use e-business and e-commerce in a same context. Having the fact, recognizing e-business and e-commerce differences is the primary prerequisite for understanding of e-business strategies. Regarding to the IBM definition, we describe e-business as “a secure, flexible and integrated approach to delivering differentiated business value by combining the systems and processes that run core business operations with the simplicity and reach made possible by internet technology”. Refer to IBM definition e-business is not only a firm web page which is used for commercial activities but also it can expand throughout all organizational divisions. Increasingly e-business comprises other business activities such as serving and managing both customer and supplier and their relationship electronically, provides support throughout product distribution activities, offers services for employees to have internal communication between departments and enable external cooperation with business partners (Mohammadian et al., 2010). Based on Lord (2000) estimation, 75% of all e-business ventures will fail, due to lack of technological understanding and poor business planning. The necessity of e-business strategies has convinced IT experts and academic researchers to put more effort on this area and examine the issues related to e-business strategies as we can see now abundant researches have done in recent years.

Fig. 1: e-business strategy multiple view

The fundamental objective of establishing e-business strategy is to indicate how internet technologies provides organizational support and give competitive advantages by means of its available resources and proper configuration to achieve the market’s needs and customers, as well as support the supply chain management and Customer Relationship Management (CRM).

E-strategies have been offered in different aspects include technological, financial, individual, organizational, inter-organizational, network, market, network and strategic aspects. However, there is an important dilemma creating successful e-business strategy. To overcome the problem, the study has to bridge the e-strategy aspects which require comprehending the organization core competencies embarking on e-business. In Fig. 1, the study presents a rich picture for e-business strategy concepts. Having the e-business strategy rich picture, the research intended to provide holistic view for analyst to achieve valuable information and identify problem situation. In next section of this study e-business Strategy Building Blocks will be explored (Mohammadian et al., 2010).

Successful e-business strategy creation: One of the most critical issues to establish new strategy at any level of organization is recognizing the core competencies in an organization. The conventional success factors and competencies which used in traditional offline business can be converted into new e-business environment. e-business has taken traditional competencies and made them stronger to employ in new e-business area. Besides, many new competencies have been created within shifting into e-business markets. One of the key competencies in e-business era is managing relationships with customers which requires strong knowledge management and makes trust as the main factors for establishing long run relationship (Sultan and Hussain, 2001). To create customer value, it is needed to consider the role of information and knowledge sharing provided for customers. Further, administration over relationship process is considered as an additional vital e-business competency when an organization dealing with its customers. Increasingly, channel management, brand management and portal management are other core competencies which supported by knowledge management system and should be considered in customer relationship management, especially on online environment. There is a phenomenon called portals which refer to shops in a virtual environment and one of the most favorable things in business. Portals consider as a core competency in companies while the organizational culture is prepared for e-business.

The question may rise in our minds about creation of e-business which is how hard it is to move a company, industry, country, or continent to e-business? One of the most significant barriers which the company faced to transform traditional physical-based business into e-business is to create a future-based culture for whole organization. Refer to one possible presumption if high level managers are change resistant so how resources can available to initiate electronic base activities. The use of enforcement can no longer help the organization to change traditional standards within companies. It also needs to change mentality and way of thinking to enable business to move towards electronic business. Another issue that e-business must conquer is internet and ways of using personal computers and how it is possible to bring home and building contractors together to have successful business model. Knowledge management systems are poorly applied across the organizations in its all forms nowadays. There will be a successful knowledge management among stakeholders if all parties in business have willingness to share information, data and knowledge reciprocally. There are many study conducted by researchers on both suppliers and retailers which all strongly suggest the more visible supply chain will bring much more marketing promotion more precise data to forecast customer demand and keep on time delivery. However, most of the corporations are unwilling to share their customer data with other competitors subjected to a risk of losing the market and customer and let competitors gain more profit. There is confusion among businesses lack of knowledge about suppliers, customers and business partners. Another issue could be the right proportion of participation in terms of cost sharing among business partners that is very difficult to determine and convince the partner to pay. It seems impossible to determine fix budget to implement applications and disseminate among suppliers and partners who exist with diverse requirements and different business level based on fluctuation in market between time to time (Jutla et al., 2001).

To this end, one of the most important prerequisites to create and employ an e-business strategy is e-business strategic initiative and information systems integration. e-business strategy must convince managers that its strategy is in full relevance with organizational plans and it could fulfill the necessary e-business objectives throughout the organization. The body of literature by Grandon and Pearson (2004) stated that those managers with positive attitude toward e-strategy adoption for their enterprise are who they add value to their firms. Based on the study conducted among successful organization in terms of e-business strategy, it reveals the fact that manager’s attitude and commitment, IT Infrastructure and internal funds are highly bounded to strategic initiative and IS integration. Alternatively, strategic initiative within enterprises with relatively high level of information systems provides high level of data process, combination and dissemination to their business partners such as customers and suppliers. Also, integrated external and internal systems in strategic initiative provide order monitoring at different steps of chain processes and alter the processes or systems automatically refer to any order changes (Zhao et al., 2008). In the next section, the building block for e-business strategy is provided.

Successful e-business strategy building blocks: A myriad of motivations spur organizations online, yet not all are appropriate for every firm. There are different priorities for the firms to using internet. Some firms use Internet as a tool to improve service quality for their customers or improve interconnectivity with suppliers as a main goal of some other firms. Thus, it is critical for firms to determine the most applicable approach for their implementation in which application should be implemented by applying appropriate business strategy throughout the organization (Magal and Levenburg, 2005). By introducing e-business to an organization, managers should consider various aspects when they try to establish an e-business strategy. Due to rapid establishment of new strategy, researchers apply diverse approaches to recommend suitable e-business strategy building blocks. Referring to Anderson et al. (2001) there are some building blocks for e-business strategy have been categorized by IT experts based on bounded technological view which are consist of three types infrastructure, applications and integration. The study (Anderson et al., 2001) also stated that these three constructs did not cover managerial and organizational aspects. However, e-business strategy’s researchers seek to identify a strategy’s building block based on organizational and managerial view alongside with mentioned constructs for the e-business strategy by IT experts. For instance, Norton (2001) has pointed out an eight Cs for e-business strategy formulation which the main components of this strategy are much important for companies’ board. These components are customers, cooperation, commitment, creation of value, competition, charging, culture and cost. It can be declared that the components are not only dealing with information systems issues used by information systems team but also cover business issues which is critical concern for companies’ board (Norton, 2001).

Earlier study on human factors Daghfous and Al-Nahas (2006) have argued that the main issues which directly affect the organization’s e-business strategy successful structure are knowledge and core capabilities as the most important prerequisites issues. The core consideration for researchers to provide a structure for e-business strategy should be focused on more important factors such as supply chain management, technological growth; customer priorities, environment and competition, beside organizational core capabilities including human resource and knowledge management. There is another study of Pai and Yeh (2008) which focuses on environment as another aspect of e-business strategy. Based on the study, organizational, technological and environmental readiness can be defined as the most vital factors to implement successful e-business strategies. As a result, with inter-organizational view and focus on partner relationship, e-business strategies should determine processes which probably faced by customers and participants during e-business stages. Moreover, it can be stated that the core competencies in successful economy nowadays are include knowledge management, technology, reciprocal trust and the interaction among stakeholders. According to Sultan and Hussain (2001), e-business strategy can be viewed as network which is focused on trust. The term trust especially between all the stakeholders is consider as one of the most imperative issues to define and development of e-business and its strategies. This issue always one of the challenging aspects in most organization and ranks as a high priority case among the firms seeking for new e-business partners. Refer to old business strategies firm preferred to interact with firms which they previously know. On the other hand, interaction with new entrants in current business environment is an inevitable part of any firm’s strategy. There are many companies who are cooperating with small to big sized new and unfamiliar companies. And trust as one of the fundamental issues can provide a sustainable value for both party in a business (Sultan and Hussain, 2001).

Another view to formulate e-business strategies is financial approach which is recognizing and understanding what factors encourage and drive the firms to engage in e-business (Levenburg and Magal, 2004). Thus, e-business strategies have been established and developed regarding to priorities of projected advantages for the firms. In this point of view, e-business strategy plays a role to achieve e-business advantages which are e-profit, communication and marketing. Business strategy with accessibility of internet should consider market as a central point. Optimal market strategies have been suggested by both academic and business literatures to enable firm maintain competitive under wide competitive environment. Moreover, many other studies are used bounded multiple views. According to Alhawamdeh (2007), business objectives and business policies accompany with cultural issues and current strategies built the foundation to establish new e-business strategy. An organization can build appropriate e-business strategy by means of effective knowledge management to tackle continuous changes and enable better control on cost, risks and benefit of organization’s e-strategies. The four key factors which have influence on adopting multiple e-business strategies have examined by Toleman and Roberts (2007). They stated a conceptual model which is examined the performance and outcomes of adopted e-business strategy. They also referred e-mail and website as part of internal business processes which related to a broad range of processes. These mentioned factors that have studied to recognize the e-business strategies were: (1) Regulatory environment, (2) Firm characteristics, (3) Stakeholder power and (4) Market and technological uncertainty. As an example, governments and their powerful supply chain organizations can create a great influence over some organizational e-business strategy. There is a strong influence on e-strategy regarding to email and websites usage by e-government due to legislative and regulatory compliance power. On the other hand, the effect on an organization’s own web sites is feeble regarding to e-government. Other five core factors were identified to support strategy formulation in e-business are as follows:

Investment in suitable information systems and technology
Appropriate reengineering and redesign of business processes
Effective marketing and customer relationship management
Efficient and effective acquisition and management of resources and relationships
The development and management of an efficient and effective logistics or distribution capability

e-business maturity model has also been proposed with using discussed issues to formulate e-business strategy. e-business maturity model can used to evaluate and identify the e-business current situation as well as providing insights and guidance on future progression and direction in e-business (Wassenaar and Gregor, 2001). In this model, five proposed issues are considered as a transition strategy and can provide a comprehensive view on crucial issues that needed to be addressed in each stage of maturity. This model focuses on CRM as one of the important contributors creating successful e-business strategy. A cooperative method based on digital technology integration, intellectual property and customer superiority is inevitable in this model (Mohammadian et al., 2010). As such, to develop the research model, the study considers customer relationship management determinants and framework towards creating a successful e-strategy model for business operating under online environment.

CRM STRATEGIC FRAMEWORK

The CRM framework is a procedure-based approach to CRM implementation which has become prevalent issue over the last decade. The traditional successful CRM implementations was widely used in the 1980s and 1990s, while the focus of current CRM research is on the processes that must be in place and aligned in order to ensure implementation success and maximize the profit. Majority of CRM models emphasis on the following components in their best practices CRM implementation model: A data warehouse, analysis tools, campaign management tools and interfaces to the operational environment and communications channels. The study of e-business strategy implementation projects (Mohammadian et al., 2010) shows organizations believe successful implementations require elements of CRM approaches, yet few use in their own implementations. Regards to the necessity of a common definition of CRM and CRM success within the organization, the study (Magal and Levenburg, 2005) found that strategy definition and implementation of select strategy-connected phases were critical to any depth or extent of e-strategy implication. It can be concluded that implementations must be front-loaded in terms of strategy development and the implementation approach in order to allow for monitoring of the process during and after implementation.

The strategic framework for CRM within e-business environment not only stems from the literature analysis findings but also from the recommendation for future CRM study. This study looks at the overall state of CRM research; the pioneer studies, key findings and recommendation for future research. It is noted that specific attention must be paid to any parts of the CRM process pertaining to the relationship(s) of interest; this study plans to facilitate and capture all processes within the organization towards building efficient e-business strategy to its greatest extent. The core principal of the study framework provides a useful description of current research achieves and present the processes and interactions to ensure successful CRM implementation and business strategy. There are three components contributes in the research framework for implementing successful CRM and e-business strategy.

THE CRM COMPONENTS TOWARDS e-BUSINESS STRATEGY CREATION

The first component is known as “Process”. It can be defined as the most delicate and important dimension of the CRM strategy that directly associate with the customer activities regards to products and services offered by the firm. Verhoef (2003) described CRM process dimension that are repeatedly started as being marketing, sales and service. Thus, it can be inferred that CRM process dimension is an integral part of the customer relationship strategy which would usually enable an organization in moving towards more customer centric leading successful e-business strategy. The process dimension of CRM can be considered as the overall infrastructure on which the total CRM strategy will stand. As a result, the organizations in order to derive and attain the long-term business benefit should try to make business process as CRM oriented as possible.

Technology is considered as one key element of CRM framework in this study. According to the study Verhoef (2003), technology within database, website design and administrative issues are the key factors for CRM effectiveness and successful strategy creation. In fact CRM system is facilitated by the technological advancement in acquiring relevant information, retrieving the information and transforms this information in formulating effective marketing strategy. On the basis of the database and information technology of CRM, the technology dimension can be further divided into three facets such as information flow, information capture and information usage which can be linked to website design and efficient administration (Wang and Splegel, 1994). It is believed that the CRM process is fueled by the information flow. So, information flow can be termed as the information acquisition in order to better understanding the trend of the customers’ needs and wants (Winer, 2001).

The usage of customer information is another element which can help organization develop CRM strategies to create overall online business plan. Winsor et al. (2004) argued that the retrieved customer information is required to be used and integrated to identify the right customer and their sharp profiling. Thus, it can be concluded that the technology dimension of CRM merely refer to the information technology and it is the combination of several facets such as information flow, information capture and information usage. As a result in order to become a sound CRM technology oriented organization it is very important to integrate all the facets of the information technology which assist creating long-term strategy plan for the business operating under online environment.

According to Zablah et al. (2004), the people dimension is the most significant part of CRM which includes the employee of an organization. The study also defined people as those responsible employees who execute firms’ day to day CRM task in order to help create value for the firm and its customers. From the prior literatures it has been already derived that CRM is imperative to create strategy, especially in online environment and improve the business performance of an organization. Yim et al. (2004) argued that employee orientation towards CRM practice refers to the employee alignment in the organization in executing the CRM tasks by interacting or communicating with the customers. On the other hand, Winer (2001) argued that employee motivation towards CRM practices includes motivating the employees to make them better aligned with the CRM strategy by means of providing award, incentive, training and education program etc. to better manage customer relationship. Yim et al. (2004) argued that the sales people should be better motivated towards CRM practices by rewarding superior CRM performance. It is also mentioned training as the critical for motivating the employees towards CRM strategy and e-business practices. So, from the above discussion it can be said that people is an inevitable CRM dimension of the corporate strategy towards successful e-business strategy creation. According to above discussion, the study presents the conceptual framework in Fig. 2.

From this framework, there are three CRM contributors namely; process factor, technology factors and people were considered as main independent variables to predict successful e-business strategy. As discussed before technology factors are an essential factor for successful CRM implementation and creating e-business strategy (Verhoef, 2003). Moreover, technology enhances the information flow to better understanding the changing needs and wants of their customers by using reliable methods (Winsor et al., 2004).

Fig. 2: Research conceptual framework

The process factor can rigorously change the customer perception of service and products offered online. Thus, it can be inferred that CRM process is an integral part of the customer relationship strategy which would usually enable an organization in moving towards more customer centric leading successful e-business strategy (Winer, 2001). People as the last component of the research framework refers to employee of an organization, so that to make a CRM effort successful the employees are required to be better adopted with the CRM strategy to generate its function effectively throughout the organization. All three CRM strategy framework determinants are assumed to be direct influence on creating successful e-business strategy. As such, the study investigates different assumptions to provide empirical evidences regards to the conceptual framework and the research objectives. Following section presents the summary of research methodology chosen for this study.

SAMPLING AND DATA COLLECTION

The targeted population was drawn from the respondents either the managers or business owner/employees deal with the strategic planning in context of customer relationship management in service industry in Malaysia. Survey data has been collected from the different proprietors as well as sales and other employees from these enterprises. Further, the study used non probability sampling in its design whereas convenience sampling was selected regards to researcher convenience-based sampling and cost/time constraint prevention. In case of any empirical investigation, data collection is the main part of all the research activities. Data collection makes data or information accessible for the researchers that are used for the research study. In this study, the survey approach has been selected for data collection. The main objective of a survey technique is to gather one or more items of information from a sample of respondents that represents the larger group or population. In an empirical research questionnaire is used as research instrument in order to collect and record information. According to above discussion, data from 250 respondents were collected and the raw data were coded. To avoid errors and outlier, the study selected 185 survey questionnaires for analysis. The data, then, populated in SPSS (v.20) for analysis. The results of analysis are presented in next section.

RESULTS

As discussed in section above, the data populated in SPSS (v. 20) for research analysis. To commence the research analysis, it is required to test capability of data collected. Thus, Cronbach’s alpha reliability test was accomplished to fulfil this prerequisite. The summary of results of Cronbach‘s alpha test is presented in Table 1 as follows:

From Table 1, the result of Cronbach‘s alpha reliability test shows value of above 0.07 for both dependent and independent variables. The coefficient values in the range of more than 0.7 are perceived to be acceptable and reliable (Nunnally, 1978). From these results, it can be inferred that the research measurement tools are reliable and researcher can proceed for further analysis. The next section presents the demographic analysis of participants in this study.

Demographic analysis: The demographic profiles of the participants have been investigated in this section. Table 2 presents descriptive analysis such as frequency and percentage of respondents in different categories.

The results show that 145 (78.4%) of participants were male and 40 (21.6%) of participants were females in this study. This indicates the number of males’ participation in this research were more than of females’. However, the result of t-test with the value of 0.08>0.05 shows no significant differences among male and female.

Table 1: Cronbach’s alpha reliability test

Table 2: The result of demographic analysis

Table 3: Results of Pearson correlation test

Table 4: The stepwise test results

In terms of the age of participants, total of 7 (3.8%) of participants had age of less than 20; 28 (15.1%) between 20-30; 43 (23.2%) between 31-40 years of age; 73 (39.5%) between 41-50 years of age and 34 (18.4%) above 50 years old. The first top category with 73 (39.5%) participants had the age of between 41-50 which is belongs to the middle age groups. The second largest group of respondents was belonged to category between 31-40 years of age. The ANOVA test shows no significant difference between age categories. In terms of education level more than 50% of respondents were degree holders and post graduates. 9 (4.9%) of respondents were associate degree holders and only 1 (0.5%) has diploma degree. The ANOVA test shows no significant difference between education levels of participants. Eventually, in terms of the position of the respondents in organization, 44 (23.8%) of participants were manager in their organization; 73 (39.5%) were senior manager in their organization; 46 (24.9%) were business owners and 22 (11.9%) were employee within their organization. This shows majority of the study’s respondents were selected from managerial groups. The next largest category was belonged to respondents who had their own business or employees from their respected companies. The ANOVA test indicates no significant differences between the means of different categories of respondents by their position. Next section discussed the correlations between variables of this study.

Multiple regression analysis: To understand the correlation between the research variables, the Linear Multiple regression test has been selected to show the effect of CRM strategy determinants on successful e-business strategy. The independent variables for this study are; process factor, technology factor and people. Therefore, Pearson's correlation analysis was carried out for each relationship to assess the correlation of variables for the interval or ratio scales measurement. The result of Pearson’s test shows linear correlation among all variables. Table 3 presents the summary of the Pearson Correlation test.

According to the results (Table 3), the model is significant at p<0.05 level regard to each variables. Process factor with p-value of 0.000<0.05, technology factor with p-value of 0.000<0.05 and People with p-value of 0.000<0.05 illustrate the strong relationship between process factor, technology factor, people and successful e-business strategy. The R-square value of 0.896 indicates that 89.6% of implementing successful e-business strategy (as dependent variable) can be explained by process factor, technology factor and people (as independent variables). To comprehend which independent factor is the best to predict dependent variables, stepwise test was conducted. The result of stepwise test is presented in Table 4.

From Table 4, process factor is the best predictor for implementing e-business strategy which revealed significant association between two variables. It can be inferred that pay much attention to CRM strategy implementation process would result a successful e-business strategy development. However, the effect of other contributors like technology factor and people cannot be neglected. In general, the study conclude that three independent variables namely and, respectively process factor, people and technology factor effect on successful e-business strategy implementation and development.

Additionally, literature reviews supported with the beliefs that the investigation of successful e-business strategy was relied on three dimensions namely; people, technology and process. This study designed in-line with Norton (2001) and Winer (2001) studies. People as one of the components in the research study is appeared to be directly associated with successful e-business strategy which is reflected in the study by Zablah et al. (2004). The result of this study also showed a positive and strong relationship between technology factor and successful e-business strategy which is reflected the study by Winsor et al. (2004) process as the last component of CRM strategy is revealed to be directly associated with the successful e-business strategy as well, which is reflected in the study by Verhoef (2003). Next section presents the study conclusion.

CONCLUSION

Nowadays, many companies are facing with the problem of choosing the best strategy to participate and establish their own e-business. It has been always a concern for business stakeholders to concentrate on developing a comprehensive e-strategy which enable them to achieve their future objectives. This study investigates and defines e-business strategies as a multiple view approach, introduces e-business strategy building blocks and provides methodologies for e-strategy creation as foundation of the research framework. In line with literature reviewed for this study and implication and experience of the researcher, the conceptual framework was developed involves the CRM strategy determinants towards successful e-business strategy implementation. To statistically test the proposed model, several tests have been conducted align with the research objectives. The empirical evidences from the test show the positive and strong associations between the variables within the research model. Independent variables of this study namely; process factor, people and technology factor, respectively (Strongest to weakest) predict the successful e-business strategy implementation which requires more attention during strategic planning of organizations, especially, within service industry operation under online environment. A proper CRM strategy implementation towards successful e-business strategy implementation also add competitive advantageous for organization in dynamic online environment. The further study in this field may require more investigation on other factors dealing with CRM strategy framework and focusing on broader scope in other industry sections.

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