The Impact of CRM on Innovation Capabilities: A Study on Industries of Pakistan

Farhan Ahmed and Danish Siddiqui
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Farhan Ahmed: Research Scholar, Karachi University Business School, University of Karachi, PAKISTAN

American Journal of Trade and Policy, 2019, vol. 6, issue 3, 77-84

Abstract: The purpose of this research is to determine the impact of CRM on innovative capabilities where a comparative study has been conducted between the services and manufacturing industries in Pakistan. For this purpose, CRM's factors include information sharing, customer involvement, long-term partnership, joint problem solving, and technology-based CRM. Product innovation, process innovation, and service innovation have been used to measure innovative capabilities. The data was collected from 60 employees working in different service and manufacturing firms in Karachi. The results show a significant impact on customer involvement, joint problem solving, and technology-based CRM on firms' innovation capabilities. It is suggested to refrain from customer involvement because it is observed that involving the customers negatively influences the innovation capabilities of the manufacturing industry. Thus, it has been recommended for companies to abstain from drawing in customers. The research also suggests adding supplier integration to form more effective innovation programs.

Keywords: Customer Relationship Management (CRM); Innovation Capabilities; Service Industries; Manufacturing Industries; Information Sharing; Joint Problem Solving; Long term Partnership; Customer Involvement (search for similar items in EconPapers)
JEL-codes: O14 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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