Customer relationship management: Innovation and performance

Purpose The aim of this study is to empirically test a framework which identifies the relationships between customer relationship management (CRM) practices, organizational performance and innovation capability of Iranian manufacturing firms. Design/methodology/approach Data for the study were collected from a sample of 211 Iranian manufacturing firms. The research model was tested using structural equation modeling. Findings The results reveal that CRM practices have a positive and significant, though weak, effect on organizational performance and innovation capability of Iranian manufacturing organizations. Innovation improvement caused by CRM also results in better organizational performance. Research limitations/implications Because this study is conducted in Iranian manufacturing organizations, it implies that the generalizability of this study’s findings is limited to the manufacturing firms in Iran and cannot be applied to other markets without a further validation. Practical implications This empirical research has extended our understanding of CRM components and their impact on business performance and innovation capability of Iranian manufacturing firms which have not been addressed together in previous empirical studies in Iran. Also, the obtained findings offer the Iranian manufacturing executives and managers strategic insights in relation to CRM implementation, CRM items and, more importantly, the most influential components of CRM on the manufacturing organizations’ performance and innovation. Originality/value This paper shows the importance of CRM practices and how they directly influence organizational and innovation capabilities of the Iranian firms. This study is among the few studies which attempt to empirically investigate the relationships between these variables particularly in the context of Iran.