Social customer relationship management and organizational performance: testing a conceptual model in the North African context

Abstract

PurposeSocial CRM (SCRM) technologies, as distinct from CRM technologies per se, provide an important new resource for companies to develop their relationships with customers and drive business performance. This research develops and tests an original model exploring the impact of SCRM on firm performance and the relationships between SCRM use, engagement, CRM capabilities and performance.Design/methodology/approachThe authors collect a sample from 227 companies using a survey and test the model using structural equation modelling.FindingsThe findings reveal that all the hypotheses in our research model are supported: the use of SCRM technologies lead to developing capabilities and engagement. These capabilities and engagement are then transformed into business performance through a mediation process. Overall, these findings are consistent with resource-based view and dynamic capability theories; these new technological and relational resources allow the creation organizational capabilities, which are essential to enable firms to improve their performance.Practical implicationsSCRM does not directly lead to performance but facilitates CRM capabilities and engagement that allow businesses to enhance performance.Originality/valueFirst, the authors conceptualize and operationalize SCRM as a unique concept, distinct in the literature. Second, the authors provide an original conceptualization of SCRM as a combination of CRM capabilities and engagement. Third, the authors study the mediating effect of CRM capabilities and engagement in the relationship between social CRM use and performance. Finally, this research is conducted in three North African countries where there is currently a dearth of understanding of the impact of modern information systems on organizational performance.