Examining business value of customer relationship management systems: IT usage and two-stage model perspectives

Abstract Empirical evidence for the business value of customer relationship management (CRM) systems remains unsolid in IS studies. This study proposes a new model for CRM value according to IT/IS usage theory and “two-stage model.” Empirical tests show that operational benefits of CRM are reflected in firms’ high revenue per employee, which leads to high profitability; strategic benefits of CRM are reflected in firms’ high customer satisfaction, which leads to high profitability and market valuation. Firm size positively moderates the operational and strategic benefits of CRM, while the industry’s product differentiation level negatively moderates operational and strategic benefits of CRM.

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