The nexus between CRM and competitive advantage: The mediating role of customer loyalty

Rashed Al Karim, Mirza Mohammad Didarul Alam*, Maha Al-Balushi

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose – To examine the impact of CRM components on competitive advantage through
customer loyalty in the banking sector of Bangladesh.
Design/methodology/approach – A structured questionnaire was used for the data collection
process. 326 respondents were participated in the survey and selected conveniently from the
commercial banks of Bangladesh. Data were analysed by using Smart-PLS software.
Findings – The outcomes indicate that customer orientation and technology capability have a
positive impact on competitive advantage while customer knowledge does not. Besides,
customer loyalty significantly mediates the relationship between customer orientation and
technology capability with competitive advantage; while this mediation effect appears
insignificant between customer knowledge and competitive advantage.
Practical implications – The study's findings can help Bangladeshi bank managers
communicate with new customers about their promotional activities while keeping old customers
informed about new CRM initiatives.
Originality/value – This study adds to the existing pool of knowledge on CRM components,
customer loyalty, and competitive advantage literature. Particularly, the mediating role of
customer loyalty between the CRM components (customer orientation and technology
capability) and competitive advantage is the unique contribution of this research.
Original languageEnglish
JournalNankai Business Review International
Publication statusAccepted/In press - 2023

Keywords

  • Competitive advantage, CRM, customer knowledge, customer loyalty, customer orientation, technology capability

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