Marketing Investigation: Customer Relationship Management and Innovation to Improve Competitive Advantage and Business Performance

Abstract

The purpose of this study is to analyze the relationship between customer relationship management (CRM) and competitive advantage and to analyze the role of innovation capabilities in mediating CRM with a competitive advantage. In addition, it examines the role of competitive advantage on retail business performance. The study was conducted on retail companies in Indonesia using a quantitative approach, and responses from 255 retail owners/managers were obtained via the random sampling method. The analysis technique used is structural equation modeling (SEM) using SmartPLS software. The research findings reveal that retail competitive advantage can be achieved through the implementation of customer-oriented CRM. CRM is also able to support innovation capabilities, which will further increase competitive advantage. It is important for retail companies to strengthen the implementation of customer relationship management in order to achieve business performance because CRM is proven to increase the ability of innovation and competitive advantage of retail companies. Research on a broader type of company is needed to provide a better level of generalization.