Journal Screenshot

International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Customer Relationship Management and Innovation Capabilities of Kuwait Airways

Sulieman Ibraheem Shelash Al- Hawary, Faraj Mazyed Faraj Aldaihani

http://dx.doi.org/10.6007/IJAREMS/v5-i4/2463

Open access

This study aims at examining the impact of customer relationship management (CRM) on innovation capabilities of Kuwait Airways. Five dimensions of CRM were included in the study: information sharing, customers' involvement, long-term relationships with customers, joint problem-solving, as well as technology-based CRM. On the other hand, innovation capabilities were measured by four dimensions: aesthetical innovation, marketing innovation, technological innovation, and innovation in administrative affairs. A purposive sample was selected from all employees of Kuwait Airways. A survey-based questionnaire was used to collect data.
Research findings indicated a high level of CRM adoption, with a first rank for technology-based CRM. Additionally, there is a high level of innovation capabilities, with a first rank for innovation in administrative affairs. The results also indicated that there is a significant statistical impact of CRM dimensions (information sharing, customers' involvement, long-term relationships with customers, joint problem-solving and technology-based CRM) on innovation capabilities in Kuwait Airways. The researcher recommends paying attention to enhancing employees' capabilities by training, investment in technological applications, and interaction with customers through technical and social media in order to generate new ideas that improve capabilities of Kuwait Airways in aesthetical innovation and marketing innovation.

Abbott, Julie, Merlin Stone and Francis Buttle (2001). Customer Relationship Management In Practice - A Qualitative Study. Journal of Database Marketing, 9(1), 24-34.
Ada, S., Lawrence, Lo, Stalcup, D., & Lee, Amy (2010). Customer relationship management for hotels in Hong Kong. International Journal of Contemporary Hospitality Management, 22(2), 139–159.
Adenbajo, D. (2003). Classifying and selecting e-CRM applications: An analysis-based proposal. Management Decision, 41(6), 570- 577.
Adler, P. S., and Shenbar, A. (1990). Adapting your technological base: the organizational challenge. Sloan Management Review, 25, 25-37.
Alireza, Rezghi Rostami Changiz Valmohammadi Jahan Yousefpoor (2014). The relationship between customer satisfaction and customer relationship management system; a case study of Ghavamin Bank. Industrial and Commercial Training, 4694, 220–227.
Badgett, Melody, Ballou, Steve and LaVall, Steve (2004). Doing CRM Right: What it Takes to be Successful with CRM-Executive Summary View. CRM Global Study, IBM Consulting Services.
Bagozzi, Richard P. and Phillips, Lynn W. (1982). Representing and Testing Organizational Theories: A Holistic Construal. Administrative Science Quarterly, 27(3), 459-89.
Baregheh, A., Rowley, J. & Sambrook, S. (2009). Towards a multidisciplinary definition of innovation. Management Decision, 47, 1323-1339.
Battista, P. and Verhun, D. (2000). Customer relationship management: The promise and the reality. CMA Management, 74(4), 34-37.
Bianka, Kühne, Gellynck, Xavier & Weaver, Robert D. (2013). The influence of relationship quality on the innovation capacity in traditional food chains. Supply Chain Management: An International Journal, 18(1), 52–65.
Blattberg, R.C. and J. Deighton (1996). Manage Marketing by the Customer Equity Test. Harvard Business Review, (July-August), 136-144.
Burgelman, R., Maidique, M.A. and Wheelwright, S.C. (2004). Strategic Management of Technology and Innovation. New York, NY: McGraw-Hill.
Butler, S. (2000). Changing the game: CRM in the e-world. The Journal o f Business Strategy, Boston, 21(2), 13-14.
Cattel, R.B. (1966) ‘The Scree Test for the number of factors. Multivariate Behavioural Research’, Vol. 1 No.1, pp. 140-161.
Cobbenhagen, J. (2000). Successful innovation: Towards a new theory for the management of small and medium-sized enterprises. Northampton, MA: Edward Elgar.
Comrey, A. L. (1978). Common methodological problems in factor analytic studies. Journal of Consulting and Clinical Psychology, 46, 648-659.
Cooper and Kleinschmidt, Elko J. (1995). Determinants of Timeliness in Product Crossan, M. & Apaydin, M. (2010). A multi-dimensional framework of organizational innovation: a systematic review of the literature. Journal of Management Studies, 47, 1154-1191.
Croteau, A. M. and P. Li (2003). Critical success factors of CRM technological Initiatives. Canadian Journal of the Administrative Sciences, 20(1), 21-34.
Day, G. & Van den Bullet, C. (2002). Superiority in customer relationship management: Consequences for competitive advantage and performance. MSI Working Paper, 02-123.
Deck, S. (2003). What is CRM?, http://www.cio.com/research/crm/edit/crmabc.html.
Deng, W. & Pei, L. (2009). Development of the hospitality quality consciousness scale: A pilot study. The Business Review, Cambridge, 12(1), 73-79. Retrieved from: http://proquest.umi.com
Drucker, P. F. (1954). The practice of management. New York, NY: Harper & Row.
Dyche, Jill (2002). The CRM Handbook; A business guide to customer relationship management. Boston: Addison-Wesley.
Evangelista, R., Perani, G., Rapiti, F. and Archibugi, D. (1997). Nature and impact of innovation in manufacturing: some evidence from the Italian innovation survey. Research Policy, 26, 521-36.
Fang, Eric & Palmatier, Robert W. & Evans., Kenneth R. (2007). Influence of customer participation on creating and sharing of new product value. Academy of Marketing Science.
Gatewood, R. D. & Field, H. S. (1990). Human Resource Selection. Chicago, IL: The Dryden Press.
Gefen, D. and Ridings, C.M. (2002). Implementation team responsiveness and user evaluation of customer relationship management: A quasi experimental design study of social exchange theory. Journal of Management Information Systems, 19(1), 47-69.
Goodhue, Dale L, Wixom, Barbara H. and Watson, Hugh J. (2002). Realizing Business Benefits through CRM: Hitting the right target in the right way. MIS Quarterly Executive, 1(2), 79-94.
Green, S G., Gavin, M. B. & Aiman-Smith, L. (1995). Assessing a multidimensional measure of radical technological innovation. IEEE Transactions on Engineering Management, 42(3), 203-214.
Grossman, G. & Helpman, E. (2001). Innovation and growth in the global economy. Cambridge, MA: Massachusetts Institute of Technology Publishing.
Grover, V., Purvis, R. L. & Segars, A. H. (2007). Exploring Ambidextrous Innovation Tendencies in the Adoption of Telecommunications Technologies. IEEE Transactions on Engineering Management, 54(2), 268-285.
Guan, J. and Ma, N. (2003). Innovative capability and export performance of Chinese firms. Technovation, 23(9), 737-747.
Gungor, M. Ozgur (2008). Customer’s Advisory, Organizational Openness and Capability: the Locus of Value F. Zeynep BILGIN Industrial Marketing Management, 37, 421–431
Guru (2003). What is CRM?. http:// www.crmguru.com/content/answers/whatiscrm.html
Hair, J.F. Jr, Anderson, R.E., Tatham, R.L. and Black, W.C. (1998). Multivariate Data Analysis. (5th ed.). Upper Saddle River, NJ: Prentice-Hall International.
Hasan, M. (2003). Ensure success of CRM with a change in mindset. Marketing Management, 37(8), 16.
Huang, H.C. and Chang, C.W. (2008). Embedded ties and the acquisition of competitive advantage. Journal of Intellectual Capital, 9(1), 105-21.
Jutla, D., Craig, J., and Bodorik, P. (2001). Enabling and Measuring Electronic Customer Relationship Management Readiness. Proceedings o f the 34th Hawaii International Conferences on System Sciences.
Kale, Sudhir H. (2004). CRM Failure and the Seven Deadly Sins. Marketing Management, (September/October), 42-46.
Kracklauer, A., Passenheim, O. and Seifert, D. (2001). Mutual Customer Approach: How Industry and Trade are Executing Collaborative Customer Relationship Management. International Journal of Retail and Distribution Management, 29(12), 515-519.
Lagrosen, S. (2005). Customer involvement in new product development: a relationship marketing perspective. European Journal of Innovation Management, 8(4), 424-36.
Lilien, Pamela, Morrison, D., Searls, Kate Sonnack, Mary and von Hippel, Eric (2002). Performance Assessment of the Lead User Idea Generation Process for New Product Development. Management Science, 48 (August).
Lin, Ru-Jen, Rong-Huei Chen, Kevin Kuan-Shun Chiu (2010). Customer relationship management and innovation capability: an empirical study. Industrial Management & Data Systems, 110(1), 111-133.
Lin, X. and Germain, R. (2004). Antecedents to customer involvement in product development. European Management Journal, 22(2), 244-55.
Mafraji, Khalifa Ali (2003).Obstacles to creative thinking. Unpublished MA Thesis, Oman, Muscat, Sultan Qaboos University.
Maklan, S., Knox, S. & Ryals, L. (2008). New trends in innovation and customer relationship management: A challenge for market researchers. International Journal of Market Research, 50(2), 1-22.
McEvily, B. and Marcus, A. (2005). Embedded ties and the acquisition of competitive capabilities. Strategic Management Journal, 26(11), 1033-55.
Mohr, J. and Spekman, R. (1994). Characteristics of partnership success: partnership attributes, communication behavior, and conflict resolution techniques. Strategic Management Journal, 15(2), 135-52.
Moors, E. H. M., Vergragt, P. J. (2002). Technology choices for sustainable industrial production: Transitions in Metal Making. International Journal of Innovation Management, 6(3), 277-299.
Nastaran, Taherparvar, Esmaeilpour, Reza & Dostar, Mohammad (2014). Customer knowledge management, innovation capability and business performance: a case study of the banking industry. Journal of Knowledge Management, 18(3), 591–610.
Nord, W. & Tucker, S. (1987). Implementing Routine and Radical Innovations. Lexington, MA: Lexington Books.
Penrose, E.T. (1959). The Theory of the Growth of the Firm. New York: John Wiley & Sons.
Petersen, Glen S. (2004). CRM Success and Best Practices: A Wake up Call. www.technology-evaluation. com/ResearchHighli ghts/crm, (October 21st, 22nd).
Plakoyiannaki, E. and Tzokas, N. (2002). Customer relationship management: A capabilities portfolio perspective. Journal of Database Marketing, 9(3), 228-237.
Pombriant, D. (2007, September). Back to the drawing board. Customer Relationship Management, 12. Retrieved from http://www.nxtbook.com/nxtbooks/ crmmedia/crm0907/index.php?startid=S1
Reinartz, Jacquelyn, Thomas, S. and Kumar, V. (2005). Balancing Acquisition and Retention Resources to Maximize Customer Profitability. Journal of Marketing, 69 (January), 63-79.
Rigby, D.K. and Ledingham, D. (2004). CRM done right. Harvard Business Review, 82(11), 118-129.
Ritter, T. and Walter, A. (2003). Relationship-specific antecedents of customer involvement in new product development. International Journal of Technology Management, 26(5/6), 482-501.
Roberts, E.B. (1988). What We’ve Learned Managing Invention and Innovation. Research Technology Management, 31(1), 11–29.
Schumpeter, J. A. (1942). Capitalism, socialism, and democracy. New York: Harper and Brothers.
Schumpeter, J. A. (1947). The creative response in economic history. The Journal of Economic History, 7(2), 149-159.
Sheremata, Willow A. (2000). Centrifugal and Centripetal Forces in Radical New Product Development under Time Pressure. Academy of Management Review, 25 (April), 389-408.
Shu-Mei Tseng Pin-Hong Wu (2014). The impact of customer knowledge and customer relationship management on service quality. International Journal of Quality and Service Sciences, 6(1), 77-96.
Sin, L.Y.M., Tse, A.C.B. and Yim, F.H.K. (2005). CRM: conceptualization and scale development. European Journal of Marketing, 39(11/12), 1264-90.
Sorescu, Alina, Chandy, Rajesh K. and Prabhu, Jaideep C. (2003). Sources and Financial Consequences of Radical Innovation: Insights from Pharmaceuticals. Journal of Marketing, 82 (October), 82–102.
Srivastava, R. K., T.A. Shervani, and L. Fahey (1999). Marketing, business processes, and shareholder value: An organizationally embedded view of marketing activities and the discipline of marketing. Journal of Marketing, (Special Issue), 63, 168- 179.
Stanley, Kam Sing Wong (2013). The role of management involvement in innovation. Management Decision, 51(4), 709–729.
Valos, M. J., Bednall, D. & Callaghan, C. (2007). The impact of Porter's strategy types on the role of market research and customer relationship management. Marketing Intelligence & Planning, 25(2), 147.
Verhoef, P. C. and B. Donkers (2001). Predicting customer potential value: An application in the insurance industry. Decision Support Systems, 32(2), 189-199.
Vorhies, D.W. and Harker, M. (2000). The capabilities and performance advantages of market-driven firms: an empirical investigation. Australian Journal of Management, 25(2), 145-71.
Weerawardena, J. (2003). Exploring the role of market learning capability in competitive strategy. European Journal of Marketing, 37 (3/4), 407-30.
West, M. & Anderson, N. (1996). Innovation in top management teams. Journal of Applied Psychology, 81, 680-693.
Wright, Len Tiu, Stone, Merlin and Abbott, Julie (2002). The CRM imperative -Practice Vs theory in the telecommunications industry. Journal o f Database Marketing, 9(4), 339-49.
Wu, Y. (2010). Applying the strategic approach to assess customer relationship management. International Journal of Organizational Innovation, 2(3), 186-205.
Yam, R., Guan, J., Pun, K., and Tang, E. (2004). An audit of technological innovation capabilities in Chinese firms: some empirical findings in Beijing, China. Research Policy, 33, 1123-40.
Yonghong, Z., Zigang, Z., & Kaijin, L. (2005). Impact of technological innovation on Growth trajectory of enterprise’s technological Capability: A Theoretical Analysis. Singapore Management Review, 27(02), 81-104.
Zablah, A. R., Bellenger, D. N., and Johnston, W. J. (2004). An Evaluation of Divergent Perspectives on Customer Relationship Management: Towards a Common Understanding of an Emerging Phenomenon. Industrial Marketing Management, 33, 475-489.

(Al-Hawary & Aldaihani, 2016)
Al-Hawary, S. I. S., & Aldaihani, F. M. F. (2016). Customer Relationship Management and Innovation Capabilities of Kuwait Airways. International Journal of Academic Research in Economics and Management Sciences, 5(4), 162–185.