Influence of Firm Characteristics on the Relationship between Customer Relationship Management Practices and Performance of Large-Scale Manufacturing Firms in Kenya

Abstract

The objective of the research was to measure the influence of firm characteristics on the relationship between customer relationship management practices and performance of large-scale manufacturing firms in Kenya. To establish this objective, two objectives focusing on financial and non-financial performance were set and corresponding hypotheses formulated. The population of the study comprised large-scale manufacturing firms that were members of the Kenya Association of Manufacturers (KAM). A descriptive cross-sectional survey was used. The data analyzed was obtained through a structured questionnaire. To test the influence of firm characteristics on the relationship between customer relationship management practices and firm performance regression analysis was used. The findings indicated that the moderating influence of firm characteristics on CRM practices and firm performance was only found to be statistically significant on non-financial performance and not statistically significant on the association between CRM practices and financial performance. Further, the interaction of CRM practices and firm characteristics on non-financial performance was statistically significant. One major contribution of this investigation is that CRM practices and firm characteristics account for significant variation in non-financial performance. Further, the findings of the study support the theoretical link between CRM practices, firm characteristics and performance.

Acknowledgement

I would like to thank God for his providence, his faithfulness and for seeing me through completion of my Ph.D. program. I sincerely thank my University Supervisors; Prof. Justus Munyoki, Dr. Joseph Owino and Dr. James Njihia, their insightful contributions, critique and patience moudlded my academic reading, thinking and writing. Special thanks to my family for their patience encouragement and prayers.

Keywords: Customer relationship management, firm characteristics, performance, large-scale manufacturing firms