The synergistic effects of customer orientation and knowledge management on firm performance
Vol 9, Issue 10, 2024, Article identifier:
VIEWS - 169 (Abstract) 75 (PDF)
Abstract
This review paper explores the intricate relationship between Customer Orientation, Knowledge Management, and Firm Performance, providing a comprehensive analysis of their collective impact on contemporary business practices. Anchored in a robust conceptual framework, the literature review traces the historical evolution of both Customer Orientation and Knowledge Management, elucidating their theoretical foundations and setting the stage for the analysis. The paper examines the drivers and dimensions of Customer Orientation, identifying factors influencing its adoption and strategies for measurement within organizations. Simultaneously, it delves into Knowledge Management, exploring diverse models and best practices for implementation. By analyzing the interplay between Customer Orientation and Knowledge Management, the study uncovers synergies, explores successful integration through real-world case studies, and addresses the challenges and limitations of this dynamic relationship. The paper employs a meticulous methodology, outlining research design, data collection, and analysis with clear criteria for selecting and reviewing relevant studies. Empirical evidence is presented, including quantitative findings, qualitative insights, and a synthesis of results, to determine the tangible impact on Firm Performance. The implications for business practices are discussed, offering practical applications, managerial recommendations, and insights into future trends. The paper concludes with a summary of key findings, highlighting contributions to the field and calling for further research. This review serves as a valuable resource for academics, practitioners, and policymakers seeking a nuanced understanding of the forces shaping modern organizational success.
Keywords
Full Text:
PDFReferences
1. M. M. Migdadi, Knowledge management, customer relationship management and innovation capabilities, Journal of Business & Industrial Marketing, vol. 36, no. 1, pp. 111-124, 2021.
2. A. A. Rastgar, E. Esmaili, R. Naderi, and A. Hemmati, Clarifying the effect of customer knowledge management to improve business performance of banks: Considering the role of electronic customer relationship management, International Journal of Electronic Customer Relationship Management, vol. 12, no. 2, pp. 108-123, 2019.
3. M. H. Boisot, Knowledge assets: Securing competitive advantage in the information economy. OUP Oxford, 1998.
4. E. Ofek and M. Sarvary, Leveraging the customer base: Creating competitive advantage through knowledge management, Management science, vol. 47, no. 11, pp. 1441-1456, 2001.
5. A. M. Abubakar, H. Elrehail, M. A. Alatailat, and A. Elçi, Knowledge management, decision-making style and organizational performance, Journal of Innovation & Knowledge, vol. 4, no. 2, pp. 104-114, 2019.
6. A. Noruzy, V. M. Dalfard, B. Azhdari, S. Nazari-Shirkouhi, and A. Rezazadeh, Relations between transformational leadership, organizational learning, knowledge management, organizational innovation, and organizational performance: an empirical investigation of manufacturing firms, The International Journal of Advanced Manufacturing Technology, vol. 64, pp. 1073-1085, 2013.
7. M. M. Al-Shammari, Business process reengineering for designing a knowledge-enabled customer-centric competitiveness strategy, Business Process Management Journal, vol. 29, no. 6, pp. 1706-1733, 2023.
8. A. Cundari, Customer-centric marketing: Build relationships, create advocates, and influence your customers. John Wiley & Sons, 2015.
9. E. Pasher and T. Ronen, The complete guide to knowledge management: A strategic plan to leverage your company's intellectual capital. John Wiley & Sons, 2011.
10. P. Rastogi, Knowledge management and intellectual capital–the new virtuous reality of competitiveness, Human systems management, vol. 19, no. 1, pp. 39-48, 2000.
11. Z. Zhu and C. Nakata, Reexamining the link between customer orientation and business performance: The role of information systems, Journal of marketing theory and practice, vol. 15, no. 3, pp. 187-203, 2007.
12. M. D. Hartline, J. G. Maxham III, and D. O. McKee, Corridors of influence in the dissemination of customer-oriented strategy to customer contact service employees, Journal of marketing, vol. 64, no. 2, pp. 35-50, 2000.
13. O. Marjanovic and V. Murthy, From product-centric to customer-centric services in a financial institution–exploring the organizational challenges of the transition process, Information Systems Frontiers, vol. 18, pp. 479-497, 2016.
14. L. Domínguez García-Guijas, Customer Centricity. New customer-focused models driven by technology, 2018.
15. S. Parniangtong, Competitive advantage of customer centricity. Springer, 2017.
16. D. S. Williams, Connected CRM: implementing a data-driven, customer-centric business strategy. John Wiley & Sons, 2014.
17. T. Carothers, The end of the transition paradigm, J. Democracy, vol. 13, p. 5, 2002.
18. E. Civi, Knowledge management as a competitive asset: a review, Marketing Intelligence & Planning, vol. 18, no. 4, pp. 166-174, 2000.
19. K. M. Wiig, Knowledge management: an emerging discipline rooted in a long history, in Knowledge horizons: Routledge, 2012, pp. 3-26.
20. A. Intezari, N. Taskin, and D. J. Pauleen, Looking beyond knowledge sharing: an integrative approach to knowledge management culture, Journal of Knowledge Management, vol. 21, no. 2, pp. 492-515, 2017.
21. H. Lee and B. Choi, Knowledge management enablers, processes, and organizational performance: An integrative view and empirical examination, Journal of management information systems, vol. 20, no. 1, pp. 179-228, 2003.
22. J. Darroch, Knowledge management, innovation and firm performance, Journal of knowledge management, vol. 9, no. 3, pp. 101-115, 2005.
23. F. O. Omotayo, Knowledge Management as an important tool in Organisational Management: A Review of Literature, Library Philosophy and Practice, vol. 1, no. 2015, pp. 1-23, 2015.
24. V. L. Crittenden, W. F. Crittenden, L. K. Ferrell, O. Ferrell, and C. C. Pinney, Market-oriented sustainability: a conceptual framework and propositions, Journal of the Academy of Marketing Science, vol. 39, pp. 71-85, 2011.
25. V. Clulow, C. Barry, and J. Gerstman, The resource‐based view and value: the customer‐based view of the firm, Journal of European industrial training, vol. 31, no. 1, pp. 19-35, 2007.
26. R. Baskerville and A. Dulipovici, The theoretical foundations of knowledge management, Knowledge management research & practice, vol. 4, no. 2, pp. 83-105, 2006.
27. V. Kaur, Knowledge-based dynamic capabilities. Springer, 2019.
28. B. Singh and M. Rao, Effect of intellectual capital on dynamic capabilities, Journal of Organizational Change Management, vol. 29, no. 2, pp. 129-149, 2016.
29. A. Osarenkhoe, What characterises the culture of a market-oriented organisation applying a customer-intimacy philosophy?, Journal of Database Marketing & Customer Strategy Management, vol. 15, pp. 169-190, 2008.
30. D. Peppers and M. Rogers, Managing customer experience and relationships: A strategic framework. John Wiley & Sons, 2016.
31. D. R. Allen, Customer satisfaction research management: A comprehensive guide to integrating customer loyalty and satisfaction metrics in the management of complex organizations. Quality Press, 2004.
32. R. B. Woodruff, Customer value: the next source for competitive advantage, Journal of the academy of marketing science, vol. 25, pp. 139-153, 1997.
33. P. J. Gumport, Academic restructuring: Organizational change and institutional imperatives, Higher education, vol. 39, no. 1, pp. 67-91, 2000.
34. T. A. Kappel, Perspectives on roadmaps: how organizations talk about the future, Journal of Product Innovation Management: AN INTERNATIONAL PUBLICATION OF THE PRODUCT DEVELOPMENT & MANAGEMENT ASSOCIATION, vol. 18, no. 1, pp. 39-50, 2001.
35. L. B. Ceesay, Building a high customer experience management organization: Toward customer-centricity, Jindal Journal of Business Research, vol. 9, no. 2, pp. 162-175, 2020.
36. C.-Y. Kao, S.-H. Tsaur, and C.-C. Huang, The scale development of organizational culture on customer delight, International Journal of Contemporary Hospitality Management, vol. 32, no. 10, pp. 3067-3090, 2020.
37. G. F. Gebhardt, F. J. Farrelly, and J. Conduit, Market intelligence dissemination practices, Journal of marketing, vol. 83, no. 3, pp. 72-90, 2019.
38. J. R. Galbraith, Designing the customer-centric organization: A guide to strategy, structure, and process. John Wiley & Sons, 2011.
39. V. A. Zeithaml, K. N. Lemon, and R. T. Rust, Driving customer equity: How customer lifetime value is reshaping corporate strategy. Simon and Schuster, 2001.
40. C. Ledro, A. Nosella, and A. Vinelli, How to assess organizational and strategic impacts of customer relationship management: A multi-perspective performance evaluation method, Expert Sys Appl, vol. 199, p. 117024, 2022.
41. I. J. Ismail, Speaking to the hearts of the customers! The mediating effect of customer loyalty on customer orientation, technology orientation and business performance, Technological Sustainability, vol. 2, no. 1, pp. 44-66, 2023.
42. S. Areed, S. A. Salloum, and K. Shaalan, The role of knowledge management processes for enhancing and supporting innovative organizations: a systematic review, Recent advances in intelligent systems and smart applications, pp. 143-161, 2020.
43. M. M. Migdadi, Knowledge management processes, innovation capability and organizational performance, International Journal of Productivity and Performance Management, vol. 71, no. 1, pp. 182-210, 2022.
44. G. C. Sokoh and U. C. Okolie, Knowledge management and its importance in modern organizations, Journal of Public Administration, Finance and Law, vol. 20, no. 1, pp. 283-300, 2021.
45. P. B. Le, H. Lei, T. T. Le, J. Gong, and A. T. Ha, Developing a collaborative culture for radical and incremental innovation: the mediating roles of tacit and explicit knowledge sharing, Chinese Management Studies, vol. 14, no. 4, pp. 957-975, 2020.
46. S. L. Hoe, Tacit knowledge, Nonaka and Takeuchi SECI model and informal knowledge processes, International Journal of Organization Theory & Behavior, vol. 9, no. 4, pp. 490-502, 2006.
47. R. McAdam and S. McCreedy, A critical review of knowledge management models, The learning organization, vol. 6, no. 3, pp. 91-101, 1999.
48. E. Bougoulia, Knowledge management maturity assessment frameworks: A holistic approach and a proposal for a novel integrated KMM model, 2023.
49. C. S. Choy and C. Y. Suk, Critical factors in the successful implementation of knowledge management, Journal of knowledge management practice, vol. 6, no. 1, pp. 234-258, 2005.
50. B. D. Janz and P. Prasarnphanich, "Understanding the antecedents of effective knowledge management: The importance of a knowledge‐centered culture," Decision sciences, vol. 34, no. 2, pp. 351-384, 2003.
51. K. A. Al-Busaidi and L. Olfman, Knowledge sharing through inter-organizational knowledge sharing systems, VINE Journal of Information and Knowledge Management Systems, vol. 47, no. 1, pp. 110-136, 2017.
52. T.-P. Dong, C.-L. Hung, and N.-C. Cheng, Enhancing knowledge sharing intention through the satisfactory context of continual service of knowledge management systems, Information Technology & People, vol. 29, no. 4, pp. 807-829, 2016.
53. J. Oliver, Continuous improvement: role of organisational learning mechanisms, International Journal of Quality & Reliability Management, vol. 26, no. 6, pp. 546-563, 2009.
54. M. M. Al-Shammari, A strategic framework for designing knowledge-based customer-centric organizations, International Journal of eBusiness and eGovernment Studies, vol. 13, no. 2, pp. 1-16, 2021.
55. K. S. Hartley, Key Strategies for Enhancing Capacity in a Customer-centric Organization, ROYAL ROADS UNIVERSITY, 2009.
56. F. Khodakarami and Y. E. Chan, Exploring the role of customer relationship management (CRM) systems in customer knowledge creation, Information & management, vol. 51, no. 1, pp. 27-42, 2014.
57. M. Alavi and D. E. Leidner, Knowledge management and knowledge management systems: Conceptual foundations and research issues, MIS quarterly, pp. 107-136, 2001.
58. A. J. Murrell, S. Forte-Trammell, and D. Bing, Intelligent mentoring: How IBM creates value through people, knowledge, and relationships. Pearson Education, 2008.
59. T. Guggenberger, A. Schweizer, and N. Urbach, Improving interorganizational information sharing for vendor managed inventory: Toward a decentralized information hub using blockchain technology, IEEE Transactions on Engineering Management, vol. 67, no. 4, pp. 1074-1085, 2020.
60. K. Cresswell and A. Sheikh, Organizational issues in the implementation and adoption of health information technology innovations: an interpretative review, International journal of medical informatics, vol. 82, no. 5, pp. e73-e86, 2013.
61. R. K. Yeo, Brewing service quality in higher education: Characteristics of ingredients that make up the recipe, Quality assurance in education, vol. 16, no. 3, pp. 266-286, 2008.
62. M. Rodriguez, R. M. Peterson, and H. Ajjan, CRM/social media technology: impact on customer orientation process and organizational sales performance, in Ideas in Marketing: Finding the New and Polishing the Old: Proceedings of the 2013 Academy of Marketing Science (AMS) Annual Conference, 2015: Springer, pp. 636-638.
63. H. M. Dah, R. J. Blomme, A. Kil, and B. Q. Honyenuga, Customer Orientation, CRM Organization, and Hotel Financial Performance: The Mediating Role of Customer Satisfaction, in Advances in Hospitality and Leisure: Emerald Publishing Limited, 2023, pp. 113-135.
64. E. Gonu, P. M. Agyei, O. K. Richard, and M. Asare-Larbi, Customer orientation, service quality and customer satisfaction interplay in the banking sector: An emerging market perspective, Cogent Business & Management, vol. 10, no. 1, p. 2163797, 2023.
65. B. Halvorsen, T. Bartram, N. Kia, and J. Cavanagh, Meeting customer needs through ethical leadership and training: examining Australian bank employees, Asia Pacific Journal of Human Resources, vol. 61, no. 1, pp. 79-100, 2023.
66. Z. Soltani, B. Zareie, F. S. Milani, and N. J. Navimipour, The impact of the customer relationship management on the organization performance, The Journal of High Technology Management Research, vol. 29, no. 2, pp. 237-246, 2018.
67. Z. U. Rehman, M. S. Baloch, and S. Ullah, Impact of Customer Relationship Management on the Performance of Hotels of Quetta, Pakistan Languages and Humanities Review, vol. 7, no. 2, pp. 327-336, 2023.
68. R. Al Karim, M. M. D. Alam, and M. K. Al Balushi, The nexus between CRM and competitive advantage: The mediating role of customer loyalty, Nankai Business Review International, vol. 15, no. 2, pp. 248-268, 2024.
69. P. C. Zaragoza-Sáez, E. Claver-Cortés, B. Marco-Lajara, and M. Úbeda-García, Corporate social responsibility and strategic knowledge management as mediators between sustainable intangible capital and hotel performance, in Knowledge Management, Organisational Learning and Sustainability in Tourism: Routledge, 2023, pp. 14-36.
70. S. Bresciani, S. U. Rehman, G. Giovando, and G. M. Alam, The role of environmental management accounting and environmental knowledge management practices influence on environmental performance: mediated-moderated model, Journal of Knowledge Management, vol. 27, no. 4, pp. 896-918, 2023.
71. A. Demir, T. Budur, H. M. Omer, and A. Heshmati, Links between knowledge management and organisational sustainability: does the ISO 9001 certification have an effect?, Knowledge management research & practice, vol. 21, no. 1, pp. 183-196, 2023.
72. S. Beigi, E. Malekakhlagh, R. Nosratpanah, and M. Safari, A framework for firm performance under the influence of knowledge management and dynamic capabilities: examining the mediating role of sustainable competitive advantage, Interdisciplinary Journal of Management Studies (Formerly Known As Iranian Journal of Management Studies), vol. 16, no. 1, pp. 205-227, 2023.
73. M. I. González-Ramos, F. Guadamillas, and M. J. Donate, The relationship between knowledge management strategies and corporate social responsibility: Effects on innovation capabilities, Technological Forecasting and Social Change, vol. 188, p. 122287, 2023.
DOI: https://doi.org/10.59429/esp.v9i10.3052
(169 Abstract Views, 75 PDF Downloads)
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 Xinghui Zhang, Aryaty Binti Alwie, Anita Binti Rosli
This work is licensed under a Creative Commons Attribution 4.0 International License.