Influence of Market Orientation on the Relationship Between Customer Relationship Management Practices and Performance of Large-Scale Manufacturing Firms in Kenya

Abstract

The main objective of the study was to measure the influence of market orientation on the relationship between customer relationship management practices and firm performance of large-scale manufacturing firms in Kenya. 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 target respondents were three top managers in each firm, and aggregated single scores were computed to lessen single source response bias. Data was analyzed through descriptive statistics and regression analysis. The results revealed that market orientation was a strong statistical predictor of firm performance. In addition, the moderating effect of market orientation on the association between CRM practices and performance (F=9.138, P-value<0.05) was found to be statistically significant.  The study supported findings of previous studies on the influence of CRM practices on firm performance. In addition, the study found that both CRM practices and market orientation had a positive and significant influence on performance. Further, the findings of the study support the theoretical link between CRM practices, market orientation and performance.

Acknowledgment

I thank and appreciate almighty God for this opportunity, his grace and favor. I also extend my sincere gratitude to my University Supervisors; Prof. Justus Munyoki, Dr. Joseph Owino and Dr. James Njihia for their valuable guidance, support and encouragement during the writing and completion of my Ph.D thesis. I also thank all members of the University of Nairobi Business Administration who contributed in one way or the other to make the writing of my thesis a success. I would also like to thank sincerely all top and senior managers in large-scale manufacturing firms in Kenya who participated in this research.  Finally my sincere appreciation goes to my family members for supporting, encouraging and being there for me during the entire journey of pursuing my Ph.D. program.

Keywords: customer relationship management, market orientation, performance, large-scale manufacturing firms