Dynamic capabilities: the missing link in CRM investments

Purpose – The purpose of this paper is to illustrate the practical application of dynamic capabilities theory to improve investment decisions in customer relationship management (CRM).Design/methodology/approach – Action research (AR) allows managers to raise the tacit knowledge of their dynamic capabilities to a level where they can be identified and developed. A framework and a process for managing dynamic capabilities in marketing are presented.Findings – The findings relate to the nature of dynamic capabilities in marketing and how they are managed.Practical implications – Marketing managers can improve the return on investments in CRM.Originality/value – The paper presents a method for applying dynamic capabilities drawn from the resource‐based view (RBV) to practical marketing problems.

[1]  P. Clark.  Action research and organizational change , 1972 .

[2]  N. Piercy,et al.  Relationship Marketing and Collaborative Networks in Service Organizations , 1994 .

[3]  J. Hagel,et al.  Unbundling the corporation. , 1999, Harvard business review.

[4]  Scott L. Newbert.  Empirical research on the resource‐based view of the firm: an assessment and suggestions for future research , 2007 .

[5]  R. Bagozzi.  Marketing as Exchange , 1975 .

[6]  Paul C. Godfrey,et al.  THE PROBLEM OF UNOBSERVABLES IN STRATEGIC MANAGEMENT RESEARCH , 1995 .

[7]  E. Gummesson.  Implementation requires a relationship marketing paradigm , 1998 .

[8]  Das Narayandas,et al.  CRM Implementation , 2006 .

[9]  L. Berry.  Relationship marketing of services—growing interest, emerging perspectives , 1995 .

[10]  Stephen L. Vargo,et al.  Evolving to a New Dominant Logic for Marketing , 2004 .

[11]  John C. Haughey.  The Loyalty Effect , 1997, Business Ethics Quarterly.

[12]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[13]  Peter J. Boettke,et al.  Understanding Consumer Behavior , 1993 .

[14]  C. Argyris.  Intervention theory and method : a behavioral science view. , 1970 .

[15]  J. Sheth,et al.  Revisiting marketing's lawlike generalizations , 1999 .

[16]  G. Susman,et al.  An Assessment of the Scientific Merits of Action Research. , 1978 .

[17]  Lynette Ryals,et al.  Using Real Options to Help Build the Business Case for CRM Investment , 2005 .

[18]  JoAnne Yates,et al.  Electronic markets and electronic hierarchies , 1987, CACM.

[19]  P. Kotler,et al.  Marketing in the Network Economy , 1999 .

[20]  D. Teece,et al.  The Dynamic Capabilities of Firms: an Introduction , 1994 .

[21]  S. Levy,et al.  Broadening the concept of marketing. , 1969, Journal of marketing.

[22]  A. Langley.  Strategies for Theorizing from Process Data , 1999 .

[23]  Richard L. Priem,et al.  Is the Resource-Based “View” a Useful Perspective for Strategic Management Research? , 2001 .

[24]  Donna L. Hoffman,et al.  A New Marketing Paradigm for Electronic Commerce , 1997, Inf. Soc..

[25]  John C. Narver,et al.  The Effect of a Market Orientation on Business Profitability , 1990 .

[26]  S. Winter.  Understanding dynamic capabilities , 2003 .

[27]  G. Day.  What Does it Mean to be Market‐Driven? , 1998 .

[28]  G. Day.  The Capabilities of Market-Driven Organizations , 1994 .

[29]  Tasadduq A. Shervani,et al.  Market-Based Assets and Shareholder Value: A Framework for Analysis , 1998 .

[30]  B. J. Pine,et al.  Do You Want to Keep Your Customers Forever , 2010 .

[31]  T. Levitt,et al.  The Marketing Imagination , 1983 .

[32]  Evert Gummesson,et al.  Total Relationship Marketing , 1999 .

[33]  C. Eden,et al.  Action Research for Management Research , 1996 .

[34]  R. Staelin,et al.  A Customer Relationship Management Roadmap: What is Known, Potential Pitfalls, and Where to Go , 2005 .

[35]  Bernard J. Jaworski,et al.  Market orientation: The construct, research propositions, and managerial implications. , 1990 .

[36]  Donna L. Hoffman,et al.  Building consumer trust online , 1999, CACM.

[37]  Raymond Liu,et al.  Strategy, technology and organisational alignment: Key components of CRM success , 2005 .

[38]  E. Gummesson.  The new marketing—Developing long-term interactive relationships , 1987 .

[39]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[40]  J. Sheth,et al.  Relationship marketing in consumer markets: Antecedents and consequences , 1995 .

[41]  Richard P. Bagozzi,et al.  Marketing as an organized behavioral system of exchange. , 1974 .

[42]  J. Barney,et al.  IS THE RESOURCE-BASED " VIEW " A USEFUL PERSPECTIVE FOR STRATEGIC MANAGEMENT RESEARCH ? , 2001 .

[43]  M. Rouse,et al.  Rethinking research methods for the resource‐based perspective: isolating sources of sustainable competitive advantage , 1999 .

[44]  W. Torbert,et al.  The Action Turn: toward a transformational social science , 2001 .

[45]  Suresh Kotha,et al.  Continuous “Morphing”: Competing Through Dynamic Capabilities, Form, and Function , 2001 .

[46]  Grahame F. Thompson,et al.  Markets, Hierarchies and Networks: The Coordination of Social Life , 1991 .

[47]  J. Sheth.  A Model of Industrial Buyer Behavior , 1973 .

[48]  Adrian Payne.  Handbook of Crm , 2005 .

[49]  Darrell K. Rigby,et al.  Avoid the four perils of CRM. , 2002, Harvard business review.

[50]  Donald A. Schön,et al.  Organizational Learning: A Theory Of Action Perspective , 1978 .

[51]  K. Eisenhardt.  Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[52]  P. Kotler.  A Generic Concept of Marketing , 1972 .

[53]  W. Johnston,et al.  Customer Relationship Management (CRM) Implementation Gaps , 2004 .

[54]  Wesley J. Johnston,et al.  Customer Relationship Management Implementation Gaps , 2004 .

[55]  Danny Miller,et al.  Strategy from the inside Out: Building Capability-Creating Organizations , 2002 .

[56]  W. Reinartz,et al.  The mismanagement of customer loyalty. , 2002, Harvard business review.

[57]  Dennis L. Hoffman,et al.  Marketing in Hypermedia Computer-Mediated Environments : Conceptual Foundations 1 ) , 1998 .

[58]  L. Ryals.  Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships , 2005 .

[59]  P. Checkland,et al.  Action Research: Its Nature and Validity , 1998 .

[60]  K. Boal,et al.  Strategic resources: Traits, configurations and paths to sustainable competitive advantage , 2007 .

[61]  A. Parasuraman,et al.  Marketing Services: Competing Through Quality , 1991 .

[62]  A. Parasuraman,et al.  A Conceptual Model of Service Quality and Its Implications for Future Research , 1985 .

[63]  V. Ambrosini,et al.  Tacit Knowledge: Some Suggestions for Operationalization , 2001 .

[64]  Rajkumar Venkatesan,et al.  A Customer Lifetime Value Framework for Customer Selection and Resource Allocation Strategy , 2004 .

[65]  Don Peppers,et al.  The One to One Future , 1993 .

[66]  Richard Makadok.  Toward a synthesis of the resource‐based and dynamic‐capability views of rent creation , 2001 .

[67]  F. Webster.  The Changing Role of Marketing in the Corporation , 1992 .

[68]  R. Brodie,et al.  How Firms Relate to Their Markets: An Empirical Examination of Contemporary Marketing Practices , 2002 .

[69]  G. Day,et al.  Superiority in customer relationship management : consequences for competitive advantage and performance , 2002 .

[70]  R. Rust,et al.  The Path to Customer Centricity , 2006 .

[71]  Kathleen M. Eisenhardt,et al.  DYNAMIC CAPABILITIES, WHAT ARE THEY? , 2000 .