Customer Relationship Management Constructs Initiating Successful e-business Strategy for Service-based Companies
A. Yusefzadeh Markhali
S. Faramarzi Jouya
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.
Received: September 11, 2012;
Accepted: November 21, 2012;
Published: February 01, 2013
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 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.
|| 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 markets 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 managers
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 strategys researchers seek to identify a strategys
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 organizations
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 firms 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,
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 organizations 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 organizations
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
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,
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.
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
|| 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.
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, Cronbachs
alpha reliability test was accomplished to fulfil this prerequisite. The summary
of results of Cronbachs alpha
test is presented in Table 1 as follows:
From Table 1, the result of Cronbachs 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.
|| Cronbachs alpha reliability test
|| The result of demographic analysis
|| Results of Pearson correlation test
|| 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 studys 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 Pearsons
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.
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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