CRM, Competitive Intensity & Firm Performance

Intense global competition a characteristic of the current business environment has generated a high level of uncertainty among companies in all industries. Consequently, firm performance is greatly influenced by the actions assumed by competitors. Recent empirical studies report inconclusive findings regarding the Customer Relationship Management (CRM) and firm performance association. Results regarding the relationship between CRM and performance have been mixed and contradicting leading to confusion among researchers. The main objective of the study was to establish the moderating effect of competitive intensity on the relationship between CRM dimensions and performance of selected hotels in Kenya. The study was guided by five specific objectives; to determine the effect of customer orientation, knowledge management, CRM organization and CRM technology, on firm performance respectively. Further, the moderating effect of competitive intensity was assessed on each of the variables. Subsequently, five hypotheses drawn from the objectives were tested. Resource-Based View (RBV) and Relationship Marketing (RM) theories grounded the study.