Effect of Customer Relationship Management on Firm Performance: A Moderating Effect of Market Turbulence amongst Multinational Banks in Africa

Authors

  • Davies Mbaabu Kajogu
    Live Fellow Member, The Institute of Professional Managers and Administrators, Jersey, Britain (PMF); Fellow, Kenya Institute of Bankers (FKIB); Chairman, Association of Certified Trustees of Kenya.

Abstract

Purpose: The main purpose of the paper was to determine the moderating effect of market turbulence on the relationship between customer relationship management and firm performance among Multinational banks in Africa. The paper was anchored on Social Exchange Theory and Relationship marketing theory.


Material/methods: The study employed positivism paradigm, therefore, both cross sectional design and explanatory causal research design were adopted around testing of the stated hypothesis. The target population is comprised of 1507 top employees drawn from 24 multinational banks in Africa. Stratified and simple random was used to select a sample of 306 as calculated using MaCorr formula.  A Structured questionnaire was used to collect data.


Findings: The findings from multiple regression model showed that customer focused and CRM technology had a significant effect on the financial performance among international firms in Africa. In addition, results from, Hierarchical multiple regression analysis revealed market turbulence had antagonistic negative moderating effect on relationship between customer focused and financial performance and relationship between CRM technology and  and firm performance among Multinational banks in Africa.


Conclusion: The findings imply that creating a customer relationship management that entirely focuses on customer needs and implementation of modern technology will improve financial performance. However, with high market turbulence, customer focus and CRM technology only, are not adequate in improving the financial performance of multinational banks.