PRELIMINARY ANALYSIS ON RELATIONSHIP OF CRM FUNCTIONS IMPLEMENTATION TOWARDS FIRM’S BUSINESS PERFORMANCE

Abstract

Purpose  of  Study: The purpose of this preliminary study is to determine the reliability and validity of the instrument used and feasible for full-scale analysis of the aforementioned studied phenomenon. PLS-SEM is employed in this preliminary study that utilised SmartPLS 3.0. Methodology: Drawing on RBV (resource-based view) the implementation of customer relationship management (CRM) functions in hotel industry had become a central strategy in determining competitive advantage. Empirical studies had documented that small and medium hotels had also embraced on customer-centric business practice that endures CRM functions as their strategy in sustaining competitive advantage. Indeed, they inclines to implement elementary CRM functions that leverage the IBT’s (internet-based technologies) of hotel website. CRM functions is regarded as firms’ resource that effectively deployed may lead to competitive advantage that portray in positive business performance. A total of seventy-five respondents (managers and owners) of small and medium hotels managers and owners from Greater Kuala Lumpur participated in the survey realised through convenient sampling method. Main Findings: The result of PLS-SEM analysis on measurement model had showed a robust analysis of internal reliability and validity. Assessment of items and constructs included in the study exhibits a good internal consistency and valid, thus, reflects an acceptable research model that are feasible and ready a full-scale analysis.