THE IMPACT OF CRM SYSTEM DEVELOPMENT ON CRM ACCEPTANCE Turun ...

284 Pages·2013·1.6 MB·English

THE IMPACT OF CRM SYSTEM DEVELOPMENT
ON CRM ACCEPTANCE
Samppa Suoniemi
Sarja/Series A-2:2013
Turun kauppakorkeakoulu
Turku School of Economics
Custos: Professor Rami Olkkonen
Turku School of Economics

Supervisors: Professor Rami Olkkonen
Turku School of Economics

Assistant professor Harri Terho
Turku School of Economics

Pre-examiners: Professor Danny N. Bellenger
Georgia State University

Associate Professor Alex R. Zablah
George Mason University

Opponent: Professor Danny N. Bellenger
Georgia State University

Copyright Samppa Suoniemi & Turku School of Economics

ISBN 978-952-249-252-4 (print) 978-952-249-253-1 (PDF)
ISSN 0357-4652 (print) 1459-4870 (PDF)

Publications of Turku School of Economics, Series A

Suomen Yliopistopaino(cid:3)(cid:50)(cid:92) - Juvenes Print, Turku 2013
ACKNOWLEDGEMENTS
Although undoubtedly a more solitary journey in nature, writing a dissertation
bears more similarities with CRM projects than first meet the eye. Different
complementary resources are required to achieve desired outcomes. Special-
ized knowledge, financial support, and good old-fashioned hard work are
necessary to complete the project, the output of which is either accepted or
rejected by the target community. Though it has been a fascinating ride and an
intense learning experience, the best part of this project will undoubtedly be its
closure. A number of people have made important contributions during this
process. I would like to thank them now.
The Turku School of Economics has showed faith in me over the years,
which I acknowledge with gratitude. I owe a great debt to Prof. Rami
Olkkonen, my supervisor and friend, without whom this dissertation would
surely not have been completed. Thank you for reinvigorating my curiosity
about academic thought and discovery. I am also very grateful to my other
supervisor Dr. Harri Terho, whose invaluable expertise and willingness to help
were absolutely crucial over the past two years. Thank you for sharing your
knowledge, I learned a great deal from this project.
I feel fortunate to have Prof. Danny Bellenger and Dr. Alex R. Zablah as
my pre-examiners and opponents. Thank you for your excellent comments and
suggestions for further improvements, which have been extremely useful in
planning my future research efforts.
I want to take this opportunity to thank Prof. emeritus Helena Mäkinen,
Prof. Malin Brännback and Prof. emeritus Sten-Olof Hansén for their guidance
and support during the earlier stages of my academic career and dissertation
project. Without them this dissertation never would have been written. I also
wish to thank Prof. Aino Halinen for her encouragement and helpful
comments at recent research seminars.
I have been lucky to have great colleagues, who have played an important
part during this process. I want to thank Prof. Arto Lindblom, Prof. Henrikki
Tikkanen, Prof. Pekka Tuominen, Dr. (prof.) Juha Panula, M.Sc. Jarno
Lindblom and the whole Innomarket team for lots of memorable (although
some recollections are admittedly vague) discussions and adventures.
I wish to express my gratitude to the following organizations, which have
supported me financially:
Emil Aaltosen säätiö
FINNMARK -tohtorikoulu
Jenny ja Antti Wihurin rahasto
Leonard Gestrinin muistorahasto
Liikesivistysrahasto
Marcus Wallenbergin säätiö
Oskar Öflundin säätiö
Suomen Kulttuurirahasto
Turun Kauppaopetussäätiö
Finally, I want to thank my family for their infinite support and under-
standing during the numerous ups and downs of this long project. To my love
Béa, thank you for your patience, I could not have done it without you.
Dublin, February 2013
Samppa Suoniemi
TABLE OF CONTENTS
1 INTRODUCTION .................................................................................... 13
1.1 Research gap .................................................................................... 13
1.2 Study purpose and research objectives .............................................. 18
1.3 The positioning of the study ............................................................. 19
1.4 The structure of the study ................................................................. 22
2 CONCEPTUAL ANALYSIS .................................................................... 25
2.1 CRM technology and CRM system .................................................. 25
2.2 IT implementation ............................................................................ 27
2.3 CRM system development ................................................................ 29
2.4 CRM acceptance .............................................................................. 32
3 LITERATURE REVIEW ON CRM SYSTEM DEVELOPMENT
AND CRM TECHNOLOGY SUCCESS .................................................. 35
3.1 Marketing research on CRM technology success .............................. 35
3.1.1 CRM/SFA adoption literature ................................................ 36
3.1.2 Technology Acceptance Model and related theories .............. 37
3.1.3 Antecedents of CRM/SFA adoption ...................................... 39
3.1.4 CRM acceptance as the measure of CRM technology
success .................................................................................. 44
3.1.5 Consequences of CRM/SFA technology use .......................... 47
3.1.6 CRM-performance literature .................................................. 49
3.1.7 Summary of marketing research on CRM technology
success .................................................................................. 51
3.2 Review of relevant IS success research ............................................. 54
3.2.1 Overview and relevance to the present study ......................... 55
3.2.2 Risk and project management theory ..................................... 58
3.2.3 IT innovation research ........................................................... 61
3.2.4 IT capability literature ........................................................... 65
3.2.5 Summary of IS success research relevant to CRM system
development .......................................................................... 69
4 A RESOURCE-BASED CONCEPTUALIZATION OF CRM SYSTEM
DEVELOPMENT ..................................................................................... 75
4.1 The resource-based view of the firm (RBV) ..................................... 75
4.2 Resources and capabilities ................................................................ 77
4.3 Resource-based mechanisms ............................................................ 81
4.3.1 Resource complementarity .................................................... 81
4.3.2 Resource-picking mechanism ................................................ 84
4.3.3 Resource hierarchies ............................................................. 85
4.4 Firm-level IT resources .................................................................... 88
4.5 Project-level IT resources ................................................................. 93
4.6 Summary of IT resources ................................................................. 96
5 RESEARCH MODEL AND HYPOTHESES ........................................... 99
5.1 CRM system development capability and CRM project
performance ................................................................................... 102
5.2 CRM product performance and CRM acceptance ........................... 109
5.3 Firm-level IT resources as antecedents of CRM system
development capability .................................................................. 110
5.4 Direct effect of CRM system development capability on CRM
acceptance ...................................................................................... 116
5.5 Direct effects of firm-level IT resources on CRM project
performance ................................................................................... 117
5.6 IT structural risks as moderating effects ......................................... 118
5.7 Control variables ............................................................................ 120
6 METHODOLOGY ................................................................................. 121
6.1 Questionnaire pre-testing ............................................................... 121
6.2 Operationalization of constructs ..................................................... 122
6.3 Sample and data collection process ................................................ 131
6.4 Common method bias .................................................................... 138
6.5 Non-response bias .......................................................................... 140
6.6 Descriptive sample statistics........................................................... 143
6.7 Primary analysis method ................................................................ 148
6.7.1 Comparison between Partial Least Squares SEM and
covariance-based SEM ........................................................ 149
6.7.2 Measurement model perspectives ........................................ 151
6.7.3 Measurement model specification and implications............. 153
6.7.4 Measurement perspective justification................................. 156
6.8 Assessment of reflective measurement models ............................... 157
6.8.1 Reflective measure purification ........................................... 158
6.8.2 Reliability and validity of reflective measures ..................... 161
6.9 Assessment of formative measurement models .............................. 165
6.9.1 Multicollinearity ................................................................. 165
6.9.2 External validity assessment................................................ 167
6.9.3 Reliability and validity of formative measures .................... 170
6.10 Assessment of the structural model ................................................. 176
6.10.1 Structural model evaluation criteria in PLS-SEM ................ 176
6.10.2 Modeling endogenous formative latent constructs ............... 178
6.10.3 Assessment of mediating and moderating effects ................. 181
7 RESULTS ............................................................................................... 185
7.1 Main effects model ......................................................................... 189
7.1.1 CRM delivery system and CRM project performance .......... 190
7.1.2 CRM product performance and CRM acceptance ................ 192
7.1.3 Firm-level IT resources as antecedents of CRM delivery
system ................................................................................. 194
7.2 Direct effects models ...................................................................... 201
7.2.1 CRM delivery system and CRM acceptance ........................ 202
7.2.2 Firm-level IT resources and CRM product performance ...... 203
7.3 Interaction model ............................................................................ 206
7.4 Control variables ............................................................................ 209
7.5 Summary of results and purified model .......................................... 211
7.6 Competing models comparison ....................................................... 214
8 DISCUSSION AND CONCLUSIONS ................................................... 219
8.1 Theoretical contribution ................................................................. 219
8.2 Methodological contribution ........................................................... 228
8.3 Managerial implications ................................................................. 230
8.4 Study limitations and generalizability of results .............................. 232
8.5 Suggestions for future research ....................................................... 234
9 SUMMARY ........................................................................................... 237
REFERENCES................................................................................................ 241
LIST OF APPENDICES
Appendix 1 Construct acronyms ............................................................... 262
Appendix 2 Measurement models and structural model ............................ 263
Appendix 3 Preliminary email regarding consent for participation ............ 264
Appendix 4 Cover letter for first questionnaire ......................................... 265
Appendix 5 First questionnaire ................................................................. 266
Appendix 6 Cover letter for second questionnaire ..................................... 269
Appendix 7 Second questionnaire ............................................................. 270
Appendix 8 Harman’s one factor test for common method bias (first
questionnaire) ........................................................................ 271
Appendix 9 Non-response analysis: Group statistics for early and late
respondents (first questionnaire) ............................................ 272
Appendix 10 Non-response analysis: Independent samples T-test for
early and late respondents (first questionnaire) ...................... 273
Appendix 11 Non-response analysis: Group statistics and Independent
samples T-test for early and late respondents (second
questionnaire) ........................................................................ 275
Appendix 12 Communalities of purified measures in EFA.......................... 276
Appendix 13 Descriptive statistics and reliability of reflective
measurement models (PLS) ................................................... 277
Appendix 14 Cross loadings (reflective measurement model analysis;
PLS) ...................................................................................... 278
Appendix 15 Hierarchical component model for CRM delivery system
(PLS) ..................................................................................... 279
Appendix 16 Indicator loadings in a 1st order conceptualization of CRM
delivery system (formative measurement model analysis;
PLS) ...................................................................................... 280
Appendix 17 Inter-item correlations of formative dimensions of CRM
delivery system (formative measurement model analysis;
PLS) ...................................................................................... 281
Appendix 18 Indicator loadings, significances and standard errors in the
main effects model (structural model analysis) ...................... 282
LIST OF FIGURES
Figure 1 Theoretical approaches to CRM system development and
CRM technology success ......................................................... 21
Figure 2 The Technology Acceptance Model (adopted from Davis,
Bagozzi & Warshaw 1989)....................................................... 38
Figure 3 Research model ........................................................................ 99
Figure 4 Reflective and formative measurement model ........................ 152
Figure 5 The hierarchical component model for estimating higher-
order formative measurement models ..................................... 169
Figure 6 Endogenous 2nd order formative composite variable with
antecedent relationships at the formative dimension level ...... 181
Figure 7 Moderator model (adopted from Baron & Kenny 1986) ......... 182
Figure 8 Mediator model (adopted from Baron & Kenny 1986) ........... 183
Figure 9 CRM delivery system and CRM project performance
(derived from main effects model) ......................................... 191
Figure 10 CRM product performance and CRM acceptance (derived
from main effects model) ....................................................... 193
Figure 11 CRM delivery system and significant antecedent paths
(derived from purified model) ................................................ 200
Figure 12 Interaction of CRM delivery system and application
complexity ............................................................................. 208
Figure 13 The purified model ................................................................. 214
LIST OF TABLES
Table 1 Structure of the study ............................................................... 23
Table 2 Innovation-diffusion model of IT implementation (adopted
from Cooper & Zmud 1990) .................................................... 28
Table 3 Antecedents of CRM/ SFA adoption ........................................ 40
Table 4 Categorization of external factors affecting CRM
acceptance ............................................................................... 52
Table 5 IS project risks affecting IS success ......................................... 58
Table 6 Contextual factors affecting IT project success ........................ 63
Table 7 IT resources affecting IT project success.................................. 66
Table 8 Summary of determinants of IS success and comparison
with CRM/SFA adoption research ........................................... 71
Table 9 Factors relevant to CRM system development capability ......... 73
Table 10 IT-related resources that combine to form IT capability ........... 89
Table 11 IT resources relevant to CRM system development
capability ................................................................................. 97
Table 12 Summary of proposed hypotheses .......................................... 101
Table 13 Construct acronyms ............................................................... 123
Table 14 Operational measures for CRM delivery system dimensions .. 125
Table 15 Operational measures for firm-level IT resources ................... 127
Table 16 Operational measures for CRM project performance and
CRM acceptance .................................................................... 129
Table 17 Operational measures for structural IT project risks ............... 130
Table 18 Distribution of end-user responses across cases (N=161) ....... 136
Table 19 Objective process performance (OPP) measures .................... 139
Table 20 Data used for assessing non-response bias ............................. 141
Table 21 Organizations in final sample by turnover (m€) ..................... 143
Table 22 Organizations in final sample by industry sector .................... 144
Table 23 Respondents in final sample by job title ................................. 144
Table 24 Respondents in final sample by experience (years with
current employer) ................................................................... 145
Table 25 CRM systems in the final sample by recentness (time in
years since system rollout) ..................................................... 146
Table 26 CRM systems in the final sample by size (number of users) ... 146
Table 27 CRM systems in the final sample by CRM type ..................... 147
Table 28 CRM systems in the final sample by project team size ........... 147