Abstract
Aims: This study examines how business strategy in the US pharmaceutical industry is affected by customer relationship management (CRM), with a particular emphasis on the role that innovation capabilities play as a moderator.
Method: Using a positivist methodology, the study makes use of primary quantitative data obtained from 250 business experts via an online survey. For data analysis, structural equation modeling, or SEM, is employed.
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The perception and management of customer relationships by focusing on building relationships and keeping customers is known as customer relationship management. It is a combination of people, processes, and technology that aims to maximize profits by establishing a desired balance between major business investments and customer satisfaction. In the current era of rapidly evolving technology and extremely volatile markets, businesses must strengthen their innovation capabilities to meet customer needs and market demands while preserving a sustainable competitive edge (Anning-Dorson, 2018). According to Teece, (2010) companies who are more innovative in their product and service offerings double their earnings over those that fail to innovate. Given this, it has become crucial for businesses to effectively enhance their innovation capabilities in order to fulfil the needs of highly unpredictable competitive marketplaces. CR focuses on creating, growing, and sustaining fruitful ongoing relationships with specifically chosen customers by leveraging the development and integration of marketing concepts with recently accessible data, technology, and organizational structures.
According to Battor, and Battor, (2010) innovation is essential for organisational success it increase growth, higher sales, profits, and competitive advantage in the market Cui, and Wu, (2016) demonstrated that exceptional performance and innovation go hand in hand. Understanding consumer preferences and needs, obtaining and integrating outside knowledge, and converting it into new and enhanced products are organisational competences for successful production innovation. A key component of this process is successful customer relationship which enables businesses to convert consumer data into relationships by actively utilizing and learning from collected data. Businesses with excellent customer relationships can watch customer behaviour, collect and store consumer knowledge and obtain insights into changing demand, as these innovation capabilities help the businesses to create and develop innovative products and services (Battor, and Battor, 2010).
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Alawiyah, I. and Humairoh, P.N., 2017. The impact of customer relationship management on company performance in three
Anning-Dorson, T., 2018. Customer involvement capability and service firm performance: The mediating role of innovation. Journal of Business Research, 86, pp.269-280.
Babones, S., 2016. Interpretive quantitative methods for the social sciences. Sociology, 50(3), pp.453-469.
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