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Exploring Crm Effectiveness: an Institutional Theory Perspective

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J. of the Acad. Mark. Sci. DOI 10.1007/s11747-011-0248-3

Exploring CRM effectiveness: an institutional theory perspective
Bas Hillebrand & Jurriaan J. Nijholt & Edwin J. Nijssen

Received: 25 June 2010 / Accepted: 28 January 2011 # The Author(s) 2011. This article is published with open access at Springerlink.com

Abstract This study identifies the potential contribution that institutional theory can make to understanding the success of marketing practices. Based on institutional theory, we argue that the effectiveness of marketing practices decreases when firms are motivated to adopt such practices under the influence of institutional pressures originating in firms’ environments. However, alignment between a practice and a firm’s marketing strategy may buffer against these negative effects. We apply these insights to the case of customer relationship management (CRM). CRM is considered an important way to enhance customer loyalty and firm performance, but it has also been criticized for being expensive and for not living up to expectations. Empirical data from 107 organizations confirm that, in general, adopting CRM for mimetic motives is likely to result in fewer customer insights as a result of using this practice. Our study suggests that institutional theory has much to offer to the investigation of the effectiveness of marketing practices. Keywords Customer relationship management . Institutional theory . Mimetic motives . Adoption . Marketing practices
B. Hillebrand (*) Institute for Management Research, Radboud University Nijmegen, Nijmegen, Netherlands e-mail: b.hillebrand@fm.ru.nl J. J. Nijholt Rotterdam School of Management, Erasmus University, Rotterdam, Netherlands E. J. Nijssen Industrial Engineering & Innovation Sciences, Eindhoven University of Technology, Eindhoven, Netherlands

Introduction Institutional theory posits that the social

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