Evaluating the effects of CRM practices on organizational learning, its antecedents and level of customer satisfaction

Abstract

Purpose The purpose of this research paper is to evaluate the effects of customer relationship management (CRM) practices on the relationship of organizational learning (OL) with customer satisfaction (CS) essentially dealing with industrial and business organizations. Industrial organizations could benefit from this study’s contributions, where the effectiveness of OL and its antecedents is measured over the level of CS in the presence of CRM practices. Design/methodology/approach In investigating the dimension of the relationship between OL and CS, the research paper uses the moderating effect of CRM practices to measure the intensity of the relationship between OL and CS. Thirty-nine European business organizations with an Indian presence were selected and a questionnaire survey was conducted on 308 senior employees and managers to collect the relevant data. Hierarchical regression analysis was used to see the interaction effects of the variables and to test the hypothesis. Findings The research findings reveal that the moderating effect of CRM practices on the relationship between OL and CS is negatively significant and has an effect on increasing or decreasing the level of CS with attempts at OL. Organization size as a moderator between OL and CS was found not significant. This means that the size of an organization cannot affect the direct relationship between OL and CS. Research limitations/implications The study is based on a cross-sectional research design which could limit the generalization after a certain period. This study has tried to remove common method bias by avoiding continuity when taking responses for independent, dependent and moderating variables. Practical implications OL far beyond its conceptual understanding to practical application is relevant to many fields of studies including human resources development, business and marketing, service marketing, education and so on. The study provides a significant contribution in business and industrial marketing areas in making OL and its shared interpretation effective to achieve a greater degree of CS and value creation. Social implications OL, when taken beyond its conceptual understanding to practical application, is relevant to many fields of study including human resources development, business and marketing, service marketing and education. This study provides a significant contribution to business and industrial marketing areas by making OL and its shared interpretation effective in achieving a greater degree of CS and value creation. Originality/value This study is original and unique in establishing the moderating relationship of CRM practices on OL and CS among European business organizations having operations in the Indian business sphere.