The Influence of e‐CRM Competitive Advantage on e‐CRM Performance in the Indian Banking Industry

• Published date: 01 September 2016
• DOI: http://doi.org/10.1002/jsc.2079
• Date: 01 September 2016
• Author: Jasveen Kaur,Baljit Kaur

RESEARCH ARTICLE

Strat. Change 25: 537–550 (2016)

Published online in Wiley Online Library

(wileyonlinelibrary.com) DOI: 10.1002/jsc.2079

Copyright © 2016 John Wiley & Sons, Ltd.

Strategic Change: Briengs in Entrepreneurial Finance

Strategic Change

DOI: 10.1002/jsc.2079

The Inuence of e‐CRM Competitive Advantage on

e-CRM Performance in the Indian Banking Industry1

Jasveen Kaur

Associate Professor, University Business School (UBS), Guru Nanak Dev University,

Amritsar,Punjab, India

Baljit Kaur

Research Scholar, University Business School (UBS), Guru Nanak Dev University, Amritsar,

Punjab, India

e‐CRM competitive advantage attained through e‐CRM tools and techniques is a

positive indicator of the nancial and non‐nancial performance of the banks in

India, thereby boosting the overall banks’ protability.

In the present scenario, competition is forcing companies to distinguish them-

selves from their rivals or competitors by oering specialized and ecient services

to their customers. It is imperative for the banks in India to implement a com-

prehensive business strategy for eective service delivery to their customers to

achieve higher levels of customer satisfaction and strive for customer delight

(KaurJ., 2012). Various organizations compete with and confront one another

on a global level using technologybased resources. Creating competitive advan-

tage and enhancing protability in relation to competitors are two creditable

strategies for every organization (Ismail et al., 2010) also reported that protability

is not the only force of competitive advantage. Competitive advantage is measured

or achieved within an organization based on other parameters such as market

share, technology, customer services, and customer satisfaction, loyalty, and trust

(Wang and Lo, 2003; Neely, 2005). In the digital world, information technology

(IT) practices have become an imperative strategy to create competitive advantage

within an organization. IT is, therefore, important for both marketers and research-

ers. Electronic customer relationship management (eCRM) is one such practice,

used by companies to forge longterm relationships with their customers via the

Internet and other electronic modes.

eCRM technology is considered to be a source of competitive advantage in

this study. Various studies have found that there is a positive relationship between

competitive advantage and the nancial performance of an organization on the

1 JEL classication codes: G21, M15, M31, M39, O31, P47.

The model measuring the impact

of e‐CRM competitive advantage

on e‐CRM performance using the

balanced scorecard approach has

been found benecial to gauge

the nancial and non‐nancial

performance of the banks in India.

e‐CRM competitive advantage

contributes greatly not only to

nancial growth, but also toward

the non‐nancial growth of banks

in terms of customer satisfaction

and improved level of internal

business.

Banks must invest in technology‐

oriented solutions to enhance

customer lifetime value and

create competitive advantage by

upgrading information technology

systems.