How Critical is Employee Orientation for CRM

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How Critical is Employee Orientation forCustomer Relationship Management? Insightsfrom a Case Study

Emmanuella Plakoyiannaki, Nikolaos Tzokas,

Pavlos Dimitratos and Michael Saren Aristotles University; University of East Anglia; Athens University of Economics and Business, and

University of Glasgow; University of Leicester

abstract This paper explores the interface of employee orientation and the Customer

Relationship Management (CRM) process based on an in-depth case study of a leading firm in

the UK automotive services sector. Employee orientation is embedded in the Organizational

Culture (OC) of the firm and manifested through its key elements, notably assumptions, values,

behaviours and artefacts. CRM consists of four organizational activities: strategic planning,

information, value creation, and performance measurement sub-processes. Based on the case

study evidence, the widely postulated link between CRM success and employee orientation isempirically supported and the mechanisms underlying this association elucidated.

INTRODUCTION

Increasingly companies realize that customers are among their most important assets

and view customer relationships as opportunities for mutually beneficial exchanges that

need to be managed carefully (Kumar et al., 1995). This has promoted customer rela-

tionship management (CRM) to a core organizational process, which extends through-

out the firm. The essence of such a process is value creation through the formation and

maintenance of relationships with external marketplace entities, particularly customers(Srivastava et al., 1999).

The extant literature suggests that CRM benefits the customer as well as the firm since

it increases the efficiency and effectiveness of marketing activities, and aligns organiza-

tional resources with the achievement of profitable objectives such as the provision of

superior customer value and service (Payne and Frow, 2005). Despite such promising

benefits, it has been postulated that an important factor underlying significant failure

rates of CRM practice is the insufficient attention that organizations pay to the critical

role of employees when producing and delivering the benefits of this process to both the

Address for reprints: Emmanuella Plakoyiannaki, School of Economics, Department of Business Administra-tion, Aristotles University of Thessaloniki, Thessaloniki, 541 24, Greece ([email protected]).

Blackwell Publishing Ltd 2007. Published by Blackwell Publishing, 9600 Garsington Road, Oxford, OX4 2DQ, UKand 350 Main Street, Malden, MA 02148, USA.

Journal of Management Studies45:2 March 2008doi: 10.1111/j.1467-6486.2007.00740.x
mailto:[email protected]:[email protected]


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firm and customers (Day, 2002; Zeithaml et al., 2001). Indeed, Reinartz et al. (2004)

suggest that successful CRM practice requires a strong organizational focus on employ-

ees, which is embedded in the collective mindset of the firm and manifested in incentives

that acknowledge and reward the contribution of employees to customer value delivery

and enhanced firm performance. Likewise, Day (2002, p. 2) suggests that relationship

leaders who excel in CRM activities are distinguished by an organizational culture (OC)

that engages the firm in understanding not only customer but also employee needs.

Overall, it has been argued that an employee-oriented firm is likely to succeed in CRM

practice since employees are the most critical component of the CRM process (Day,

2002; Reinartz et al., 2004; Srivastava et al., 1999).

The aim of the study reported in this paper is to advance existing theory and practice

in the area of CRM by illuminating the link between employee orientation and CRM

practice empirically and by exploring in detail the mechanisms through which the effect

of employee orientation is manifested in the CRM process. This study addresses previous

suggestions that emphasize the interface between CRM practice and related peopleissues as an area in which further research is urgently needed (Payne and Frow, 2005,

p. 174). By means of a case study, in a CRM best practice firm in the UK automotive

services sector, the paper contributes to the development of actionable theory in the area.

The empirical evidence and associated discussion corroborates calls for placing greater

emphasis on understanding organizational issues and human agency in the CRM

process (cf. Day, 2002; Srivastava et al., 1999; Zablah et al., 2004), and illustrates the

mechanisms for doing so.

The paper begins with a literature review on the key notions of this study, namely

CRM and employee orientation along with the development of research propositions.After a discussion of the methodology adopted in this study, its findings are discussed.

Bearing in mind the limitations of this study, the paper concludes with theoretical and

managerial implications, as well as further research directions.

LITERATURE REVIEW

The Concept of Customer Relationship Management

The meaning of the term CRM has been an issue of considerable debate in the relevant

literature (Verhoef, 2003; Zeithaml et al., 2001). Langerak and Verhoef (2003) suggest

that CRM theory and practice integrates three aspects of marketing management includ-

ing customer orientation, relationship marketing and database management. Likewise,

Zablah et al. (2004) identify five major conceptualizations of CRM, namely: (1) a strategy

that enhances the profitability of the relationship portfolio of the firm; (2) a philosophy

aiming at achieving customer centricity for the company; (3) a capability that reflects on

the quality of customerfirm interactions; (4) a technological tool that integrates sales and

marketing information systems to cultivate relationships with customers; and (5) a

process that spans the entire organization and focuses on the creation and leveraging of

relationships with external marketplace entities, especially customers.This study builds upon the last view of CRM as a higher level process that includes

all activities that firms undertake in their quest to build durable, profitable, mutually

Employee Orientation and Customer Relationship Management 269

Blackwell Publishing Ltd 2007


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beneficial customer relationships (Zablah et al., 2004, p. 477; see also Reinartz et al.,

2004; Srivastava et al., 1999). According to Zablah et al. (2004, p. 479), this view seems

to offer the most comprehensive, inclusive view of CRM and to highlight the strategic

importance of CRM practice.

A synthesis of the extant literature (Lemon et al., 2002; Payne and Frow, 2005;

Reinartz et al., 2004; Srivastava et al., 1999; Zablah et al., 2004) suggests that the CRM

process consists of four interrelated sub-processes: the strategic planning sub-process, the

information sub-process, the value creation sub-process, and the performance measure-

ment sub-process. Similarly, each CRM sub-process can be subdivided into a collection

of components or activities that facilitate the performance of a given task.

The strategic planning sub-process provides direction for the adoption, development,

implementation and evaluation of CRM practice in the organization (Langerak and

Verhoef, 2003). It cultivates a strategic orientation that makes customer relationships a

priority and combines two interrelated components, notably corporate strategy and

customer strategy (Day, 2002). Corporate strategy articulates the vision, positioning andoverall value proposition of the business and ensures that these components integrate to

the customer strategy of the firm and the provision of superior customer value (Payne

and Frow, 2005). Customer strategy enables firms to identify, profile, target and

reach customer segments based on customer transactional and relationship lifecycle data

(Reinartz et al., 2004; Srivastava et al., 1999).

The information sub-process of CRM contributes to generation of customer knowledge

that is essential for the creation and delivery of customer value, and customer retention

(Reinartz et al., 2004; Zablah et al., 2004). It assists firms to systematically acquire,

disseminate and use information from customer contact points in order to understandcustomer preferences, and improve customerfirm dialogue across multiple channels of

interaction and service delivery. Additionally, it promotes the development of a profit-

maximizing portfolio of customer relationships by enabling firms to select the right

customers, prioritize relationships and productively manage interactions with them

(Reinartz et al., 2004).

The value creation sub-processof CRM includes the design, development, and delivery of

products and services that attempt to meet customer needs and preferences (cf. Payne

and Frow, 2005). It demonstrates a long-term commitment of the firm to create superior

customer value through learning continuously about markets and working closely with

users of products in order to discover latent needs of customers. The value creation

sub-process embraces the concept of relationship value consisting of benefits (emotional,

social and special treatment benefits) that the customer experiences during service

encounters while maintaining a relationship with the supplier (Gwinner et al., 1998). It

also involves the appropriate combination of marketing channels for delivering enhanced

customer experiences.

The performance measurement sub-process of CRM pertains to continuous monitoring,

evaluation and improvement of the whole process and its sub-processes. It captures

customer feedback on how successful employees are in delivering the value offering of the

firm and provides insights into how employees may improve their behaviour to fit theexpectations of customers. Performance assessment of CRM ensures that stakeholders of

the firm have mutually reached their goals and provides opportunities for improving

E. Plakoyiannaki et al.270



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customer retention, cross-selling/up-selling activities and customer advocacy (Reinartz

and Kumar, 2000; Zeithaml et al., 2001). This sub-process incorporates the assessment

of CRM-related aspects of performance such as customer satisfaction, customer reten-

tion and financial outputs, which are closely linked to human agency and employee

contribution to CRM practice (Zablah et al., 2004).

Overall, the view of CRM as an organization-wide phenomenon is most appropriate

for the present study since it allows one to realize the critical role of employees. Addi-

tionally, such a view provides the basis for empirical scrutiny of the suggestion that

success of CRM is contingent upon the wellbeing of employees who implement this

process, and the development of an organizational mindset that emphasizes employee

focus (Reinartz et al., 2004; Srivastava et al., 1999).

Employee Orientation

During the past two decades, the term employee orientation has been used to describea view of employees as partners in the effort of the firm to achieve organizational success

in the marketplace. The underlying logic of approaching employees as organizational

assets and treating them as partners is that if management wants its employees to do a

great job with customers, then it must be prepared to do a great job for its employees

(George, 1990, p. 64). It has been argued that successful customer relationships require

a management focus (internal suppliers) on servicing the needs of employees (internal

customers), who, in turn, accommodate external customers (Hauser et al., 1996). An

emerging theme from this work is that employee focus is embedded in the OC of the firm

(Berry, 1981; Conduit and Mavondo, 2001; George, 1990). OC refers to the pattern ofbasic assumptions that a given group has invented, discovered or developed in learning

to cope with its problems of external adaptation and internal integration (Schein, 1984,

p. 3).

The view of employee orientation as an aspect of a firms OC is associated with the

human relations perspective of McGregor (1960) and, more recently, with the relation-

ship marketing approach (Hauser et al., 1996). McGregor (1960) discusses the pre-

requisites of an employee-oriented OC, notably supportive relationships, mutual trust

and egalitarian management style. These prerequisites enhance employee commitment,

loyalty and motivation in the organization. According to Hofstede et al. (1990), employee

orientation characterizes organizations that appreciate the needs of human capital and

view workers as partners to service productivity. Similarly, relationship marketing theory

through the notions of internal marketing (Berry, 1981) and part-time marketer

(Gummesson, 1991) endorses employee orientation as an organizational philosophy for

developing customer-conscious employees.

According to the relevant literature, employee orientation is manifested in non-

material and material elements of OC (Conduit and Mavondo, 2001). Such elements

include assumptions, values, behaviours and artefacts. Assumptionsare fundamental and

taken for granted beliefs about reality and human nature. They are the deeper layer of

OC and form a framework for the right things to do (Schein, 1984). The nucleus andunderlying assumption of employee orientation is that organizational members are

expected to be supportive of each other and interested in fulfilling each others needs in




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the work setting (Naisbett and Aburdene, 1985). Employee-oriented firms acknowledge

employees as assets for organizational success, and actively promote ideas and partici-

pation of organizational members in strategic decisions (OReilly, 1989).

Valuesreflect the desirable and influence the selection of available modes, means, and

ends for action. According to Hatch (1993), they represent social principles, goals,

standards and philosophies considered to have intrinsic worth for the individual and/or

organization. Core values in the organization can effectively motivate employees in their

job (van Rekom et al., 2006). Values of employee orientation define how organizational

members should interact with each other in the work setting. They promote people

concern as a desirable state of mind in the organization and form the basis for the

development of behaviours and artefacts (Maignan et al., 1999). Key values of employee

orientation relate to employee trust and empowerment (Beatty, 1988; Dobni et al., 2000).

The former refers to the willingness of organizational members to rely on each other

in order to perform a service task or job-related activity (OReilly, 1989). The latter

describes the discretion of employees to make work-related decisions in the organiza-tional setting. Empowerment is composed of two elements, namely employee self-efficacy

(employees belief in his or her capability to perform a task) and employee adaptability to

customer needs (Bowen and Lawler, 1992; Chebat and Kollias, 2000; Conger and

Kanungo, 1988).

Behavioursrefer to actions, routines and responses of organizational members to envi-

ronmental stimuli, which convey the essence of OC to internal and external stakeholders,

and particularly customers (Narver and Slater, 1990). A review of the relevant literature

(Chebat and Kollias, 2000; Conduit and Mavondo, 2001; Varey and Lewis, 1999)

suggests that employee-oriented behaviours concentrate on the fulfilment of employeeneeds and wants through continuous training and development of organizational

members; and, systematic implementation of an incentive and performance system

based on individual member career paths and aspirations.

Artefactsinclude material and non-material aspects of OC, namely architecture, tech-

nology, office arrangements, language, rituals, dressing code, and stories, which are

created by the organization and have symbolic meaning (Schein, 1984; Trice and Beyer,

1992). Artefacts of employee orientation include codes of practice, organizational charts,

corporate brands as well as incentive and reward schemes that serve to reinforce the

meaning of employee-oriented assumptions and values (cf. Schein, 1984). The corporate

brand stands as a key organizational artefact because it embraces the underlying

substance of OC and summarizes what the organization means to its participants (Trice

and Beyer, 1992).

CRM and Employee Orientation: A Synthesis

Bearing in mind the four employee-oriented elements of OC and the CRM sub-

processes discussed earlier, this section develops a theoretical understanding of how

specific elements of OC may be expected to affect sub-processes of CRM. It does sothrough the development of propositions that navigated the fieldwork and ensuing

discussion in this paper (cf. Yin, 1989).




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Employee-oriented assumptions convey that organizational members are expected to

be supportive of one another and interested in fulfilling each others needs in the work

setting (Maignan et al., 1999). They serve to communicate a shared understanding that

close relationships internally spill over to customerfirm interactions. Employee-oriented

assumptions allow the participation of employees in the strategic planning sub-process

since employees interact and work closely with customers and, therefore, understand

better customers needs. Viewed in this light, organizational members are seen as

partners in strategic decision-making at different organizational levels and determine to

a large extent the strategic orientation of the firm towards customers. Such a family

culture is manifested in the practices of firms such as Sears Roebuck and 3M, which

emphasize employee participation in their strategic planning to develop enhanced cus-

tomer offerings. Therefore:

Proposition 1: Assumptions supporting close employee relationships affect positively the

strategic planning sub-process of CRM.

Employee-oriented values of trust and empowerment seem to reflect on the ability of

organizational members to collect and disseminate information about existing and pro-

spective customers, and use this information to deliver customer value (e.g. provision of

high quality in service delivery and customer-firm interactions). Particularly employees

feelings of trust in the work setting can encourage meaningful sharing of timely informa-

tion for meeting customer needs, and cooperation in customer value creation and delivery

(Anderson and Narus, 1998). Likewise, empowerment allows employees to demonstrate

increased adaptability to customer needs and customize the service to fit the expectationsof customers (Chebat and Kollias, 2000). As employees gain more discretion over how

their jobs are performed, their level of self-efficacy increases because they can decide on

the best way to perform a task. Additionally, empowered employees are likely to respond

faster to customer needs during service delivery and recovery as well as interact with

customers with greater warmth and enthusiasm (Bowen and Lawler, 1992). Empowered

employees are likely to participate in close relationships with the customer, and acquire,

disseminate and act upon information regarding his or her expectations and perceptions

in order to provide enhanced customer value (Berry and Parasuraman, 1997). Hence:

Proposition 2a: Employee trust affects positively the information and value creation

sub-processes of CRM.

Proposition 2b: Employee empowerment affects positively the information and value

creation sub-processes of CRM.

Employee-oriented behaviours are linked to behaviour-based performance evalua-

tion, and employee training and development. Behaviour-based performance evaluation

systems are based on employeemanagement mentoring and subjective methods of

evaluating behaviour typically centred on employee inputs during customer interactionsor service encounters (Oliver and Anderson, 1994). These evaluation systems aim at

enticing employees to take ownership of their job, experiment with new ideas and work




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towards meeting their self-development needs. Contrary to evaluation approaches that

focus primarily on the outputs of employees, behaviour-based evaluation primarily

captures and compensates competences of employees, which are significant for the CRM

process, namely communication abilities, service-oriented behaviours, personal qualities

(e.g. friendliness, courtesy and empathy) as well as abilities of employees to collect,

disseminate and use information in service situations.

As such, behaviour-based evaluation systems are likely to promote customer orienta-

tion since they can outline correct employee inputs in service encounters and link

employee behaviour to the expected outcomes of customer satisfaction and retention

(Churchill et al., 1985; Cravens et al., 1993). It follows that behaviour-based evaluation

systems seem to assist performance assessment of CRM because they offer benchmarks

for evaluating and improving CRM-compatible behaviours (Reinartz et al., 2004,

p. 296) in the organization. Therefore:

Proposition 3a: Behaviour-based evaluation of employees affects positively the perfor-mance measurement sub-process of CRM.

Employee training and development are key behaviour-related components of an

employee-oriented OC because they illustrate the emphasis of the firm on building up

human capital with necessary skills and knowledge. Ruekert (1992) indicates that train-

ing programmes provide employees with specialized skills for customer learning and

sensitivity to customer needs as well as opportunities for personal development. Likewise,

Bowen and Lawler (1992) suggest that training and development enhance knowledge

management by enabling organizational members to acquire, distribute and use infor-mation in order to solve problems and deal with customer inquiries. Also they facilitate

aspects of the value creation sub-process such as the achievement of service excellence,

and the nurturing of personalized communication between the firm and its customers

(Varey and Lewis, 1999). Training and development assist employees in acquiring a

holistic view of their roles in the organization, and ensure that they are prepared and

motivated to act in a service-oriented manner (George, 1990). Thus:

Proposition 3b: Employee training and development affect positively the information

and value creation sub-processes of CRM.

Literature indicates that employee orientation is a critical element for those organi-

zations that build their success on customerfirm relationships (Beatty, 1988; Conduit

and Mavondo, 2001). Reinartz et al. (2004) proposed that success of CRM practice is

largely dependent on an organizational orientation that caters the needs of employees.

The sales management literature has also discussed the link between employee orienta-

tion, customer-oriented behaviours of sales people and organizational performance

(Crosby et al., 1990; Singh et al., 1996; Spiro and Weitz, 1990). Specifically, Singh et al.

(1996) suggest that employee-oriented organizational practices promote customer orien-

tation and performance of sales people since they emphasize interpersonal relationshipsas means for organizational success. Hence, an employee-oriented OC is likely to

provide a unifying focus on satisfying the needs of employees, who, in turn, meet




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customers needs and expectations. It can offer a framework for managing employees

towards establishing profitable customerfirm relationships and meeting key objectives

of CRM practice. Such objectives may include the achievement of enhanced customer

satisfaction and retention, quality in service delivery and customerfirm interactions,

profitability and shareholder value of the firm (Anderson et al., 2004; Bolton, 1998,

Verhoef, 2003). Viewed in this light, an employee-oriented OC is likely to enhance

aspects of CRM performance of the firm. Hence:

Proposition 4: Employee orientation affects positively the performance of the CRM

process.

RESEARCH METHODOLOGY

The Case Study Approach

The case study method was selected to investigate the aforementioned propositions. Thismethod was valuable in this research mainly for two reasons. First, it facilitated the

holistic examination of the complex and cross-functional process of CRM in the orga-

nizational setting, which is a task that requires the collection of rich data from multiple

sources of evidence (cf. Bonoma, 1985). Second, the use of the case study approach was

appropriate for the study of employee orientation since it provided in-depth contextual

information on cultural phenomena embedded in the organizational fabric (cf. Dyer and

Wilkins, 1991; Eisenhardt, 1989; Eisenhardt and Graebner, 2007). The choice of a single

case study was based on the approach of Dyer and Wilkins (1991) who argue that a single

deep case is the optimum form of case study research. This corroborates suggestions ofrelevant literature ( Ogbonna and Wilkinson, 2003; Yin, 1989) that recommend the use

of single-case design for the study of OC and organizational processes such as CRM.

The Case Study Firm

The case study firm, Express Service (a pseudonym), operates in the UK automotive

services industry, specifically in the fast-fit sector. The automotive services sector was

selected for investigation since it is distinguished by an interpersonal focus and the

relative importance of confidence that the customer shows towards the service provider

(cf. Gwinner et al., 1998; Mills and Newton, 1980). The emphasis that automotive

service providers place on customerfirm relationships is reflected on the increasing

implementation rates of CRM practice (Key Note, 1998).

Two attributes made the company attractive from both a theoretical and a practical

perspective. First, the company featured as a CRM best practice firm in a business

environment that has traditionally been characterized by poor customer relationships

(Taylor, 2000). This allowed the authors of this paper to benchmark the CRM process

and probe for key internal factors driving CRM success. Second, Express Service com-

bined elements and activities of the CRM process (e.g. improvement of customer-facing

business processes, the development of a loyalty programme, launch of a relationaldatabase) that seem to describe to a large extent CRM investments in service organiza-

tions (Key Note, 2003).




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The Data Collection

The data collection process lasted 14 months and consisted of three stages, notably the

drift, design and probing stages (Figure 1) (cf. Bonoma, 1985). This stage-by-stage

process of data collection integrates a variety of data sources over time in order to

enhance an understanding of actors, processes and experiences within the organizationalcontext. During the data collection process no major events occurred in the internal or

external environment of the firm, which could affect the findings of the study.

During the first stageof data collection, which lasted three months, both the investiga-

tors and investigation were in a drift mode (Bonoma, 1985, p. 204). This stage of data

collection was heavily based on observation in the premises of the organization, informal

discussions with organizational members as well as examination of archival data and

company material in an attempt to understand the context, people and jargon relevant

to CRM practice in Express Service.

observation

informal

discussions

with staff

archival data

follow-up

discussions

in-depth

interviews

observation

observation

archival data

analysis of

archival data

Stage 1: Drift Stage

Stage 2: Design Stage

Stage 3: Probing Stage

Outcomes:

* This stage offered insights into the org.

setting which illustrated:

- the history of the case study firm

- perceptions of org. members regarding

employee orientation in the case study firm

- the CRM process

- relationships among organizational

members

- customer-firm relationships

* This stage facilitatedthe refinement of

research focus on employee orientation and

CRM, the incorporation of organizationaljargon into the interview guide and the

selection of interview respondents

Outcomes:

* This stage offered detailed data that illuminated:

- the specific components of employee orientation in

the case study firm

- the elements of the CRM process

- the interface between employee orientation and

CRM

* The interpretation and synthesis of data

emerging from this stage allowed the researchers

to understand the interaction between employee

orientation and CRM, and develop a framework

of the link between employee orientation and

CRM

Outcomes:

* This stage offered insights that refined:

- researchers' understanding on the interface between

employee orientation and CRM

- a framework depicting the link between employee

orientation and CRM

Figure 1. The stage by stage process of data collection in the case study firm

Source: The authors.




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The second stage of the data collection process lasted eight months and provided the

main body of data linked to the propositions of the study. In addition to observation and

archival data, this phase involved in-depth interviews with organizational members. A

total of 36 detailed, in-depth interviews were conducted with staff, which covered the

width and depth of the organizational structure. The identification of respondents was

based on a snowballing technique using as a criterion the involvement of respondents in

the CRM process and followed recommendations by Huber and Power (1985), and

Kumar et al. (1993) for improving the accuracy of retrospective reports and minimizing

interview effects. Specifically, in order to reduce interview effects the authors were

involved in the interview process so as to protect from researcher bias in data collection

phases (Denzin, 1989). Subsequently they analysed multiple interviews independently

and discussed research notes and coding systems with each other. Each interview

lasted between one-and-a-half and two hours. All interviews were tape-recorded and

transcribed.

The interviews were largely unstructured and sought to explore the history of the firmin terms of its CRM investment and the shared understanding that inspired organiza-

tional action. Interview respondents were invited to elaborate on: (1) their roles in CRM

sub-processes and why they performed their roles in a given way (means and ends behind

action and corporate success); (2) howthey were treated by other organizational members

and management in the firm; (3) empowerment policies, promotion and development

procedures as well as reward systems of the investigated firm; and (4) whetherand howthe

organizational context reflected upon (employee-role) performance of the CRM process.

The researchers intention was to allow interviewees to elaborate freely on aspects of

CRM practice throughout the interview process. This process offered insights into theimportance of organizational context for CRM practice; the roles of organizational

members in the CRM process; the nature of relationships between organizational

members; and whether and how these relationships were likely to shape employee

customer interactions (cf. Schein, 1992).

The third stage involved the late stages of the case study project, which lasted three

months. In this probing phase follow-up interviews with respondents, observation and

archival data were used as means of investigating further the interface of employee

orientation and CRM practice, and refine the researchers understanding developed at

the design stage of the data collection process.

The Analysis of Data and Quality of Findings

The data collection activities culminated in the completion of a retrievable database

containing 150 pages of structured field notes, 36 audiotapes, 470 pages of single-

spaced interview transcripts, and other related documents such as trade press and

archival data. The analysis of results was based on the constant comparative analysis

approach (Dyer and Nobeoka, 2000). According to this approach, as the research

proceeded and new data were collected, they were constantly compared to prior dataand theory in terms of categories and concepts. This process was repeated until theo-

retical saturation was reached, i.e. until no new categories/concepts were generated




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out of the comparison of more recent data with prior data and theory. During the

analysis process, data were systematically put into categories by means of the NUDIST

software index.

In order to ensure the quality of the case study findings, the researchers followed

numerous practices recommended in the literature to increase the validity and reliability

of the case study evidence, such as theory to structure the list of interview topics

(Eisenhardt, 1989) and data; and, between-method triangulation to capture investigated

phenomena from different perspectives ( Yin, 1989). Data triangulation is based on the

collection and comparison of data from multiple respondents (e.g. management, fitters

and front-line employees) and different functions (e.g. marketing, HRM, field-services,

sales; finance) in the organization (Denzin, 1989). In a similar vein, between-method

triangulation relied on the use of multiple methods such as interviews, observation,

archival data and documentation in order to explore the interface of employee orienta-

tion and CRM (Denzin, 1989).

This study is subject to limitations of generalizability associated with the single casestudy design. The case study evidence may offer useful lessons regarding organizational

support of CRM initiatives to companies planning to approach CRM practice in a

similar way to that of the investigated firm.

FINDINGS: EMPLOYEE ORIENTATION AND CRM

The strategic objectives of CRM practice in the investigated firm were linked to the

achievement of enhanced satisfaction, and retention for existing and prospective refer-ral customers. According to the case study evidence, referral customers were highly

profitable because they generated positive word-of-mouth, stayed with the firm over

the long run, devoted a large share-of-wallet to the firm and demonstrated cross-

buying behaviour. The objectives of customer satisfaction and retention were delivered

through the coordination of elements and activities within the information, value and

performance measurement sub-processes of CRM, which aimed at: (1) improvement of

customer-facing business processes; (2) development of a loyalty programme; and (3)

development and launch of a relational database enabling a better understanding of

customers.

First, the improvement of interpersonal communication with existing and potential

referral customers included the integration of information from all points of customer

contact (e.g. call centre, the internet, mail and service centres) across different products

and services to a single contact centre that would handle all customer enquiries. This

contact centre also incorporated a customer satisfaction survey unit that contacted 6000

customers per day and selected information regarding their experiences in Express

Service centres. Further, this initiative required the training and development of multi-

task front-line employees that established a personalized dialogue with customers and

accommodated multiple customer needs.

Second, the development of a loyalty card programme encouraged customers toenter long-lasting relationships with Express Service by rewarding them for patronage.

Express Service claimed that the launch of the loyalty card aspired potential referrals




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to enter lifetime relationships with the firm. The members of the loyalty card were

entitled to a 10 per cent discount on any purchase made from the Express Service

Group centres throughout Europe and special privileges such as free car engine

tests.

Third, the launch of a central data repository assisted the integration of customer

information across all parts of the business in order to produce a 360 view of the

customer that would aid the organization in developing personalized value offerings to

customers. The database was designed to register information from the single contact

centre and distribute information to customer-facing staff, namely fitters at service

centres and contact centres consultants, and eventually customers via interactive and

internet technologies. Bearing in mind this organizational background, the current study

offered the following insights.

Employee-Oriented Assumptions: The Strategic Compass of CRM

Express Service employees often referred to the Express Service Village to describe how

they thought and felt about the organization. A Regional Manager elaborated on the

strong feelings of kinship that existed among employees of Express Service:

The Express Service Village is like a family! . . . One of my best friends is an Express

Service person and our wives are best friends, all because we work for Express

Service. And that to me is the perfect demonstration of what can be achieved

through working together as a compact team. We are probably more like brothersnow than colleagues and the two wives are like sisters. (Regional Manager, 18 years

service)

The metaphor of the Express Service Village demonstrated the assumptions of

organizational members about the nature of relationships in the firm. These relationships

were manifestations of the employee-oriented OC of the firm. First, the village meta-

phor illustrated the importance attributed to collaboration, harmony and mutual support

among co-workers. Express Service people were inextricably connected to a social group

and were oriented towards recognizing and fulfilling the needs of group members in the

work setting. Second, the village metaphor demonstrated the focus of the organization

on providing value to its employees. Relationships were seen as a means to deliver value

to Express Service people and ensure that employees continued to work for the investi-

gated firm.

Employee-oriented assumptions in Express Service reflected not only the way employ-

ees related to one another in the workplace but also the way they related to customers in

the marketplace. In this employee-oriented OC, organizational members were seen as

partners in strategic decision-making at different organizational levels and determined to

a large extent the strategic orientation of the firm towards customers. Such assumptions

had produced desirable results in the history of the case study firm such as cooperationamong organizational members, and were used as points of reference when managers

made strategic choices in the marketplace.




13/26

Analytically, assumptions of employee orientation appeared to influence positively the

strategic planning process of CRM, notably the corporate strategy including the vision of

the firm, and customer strategies such as customer segmentation (support of Proposition

1). For instance, the inherent focus of Express Service on supportive employee relation-

ships was apparent in the corporate vision:

The Express Service Village is how we manage our relationships within the business,

because that can also affect customer relationships. Relationships among employees

inspire the vision of Express Service . . . they are the compass for the course of CRM.

So, if customer management is at the hub, if we do not support and motivate our

people, then we are going to fail at the moment of truth. (Director of Customer

Services, 22 years service)

According to this director, employee-oriented assumptions served as a point of refer-

ence that directed relationship management within and outside the organization. Theyconstituted the inner-directed (cf. Heskett, 1987, p. 120) vision of the organization, that

is what the firm aspired to be for its employees. Assumptions reflected on the external

vision of the firm, which was what the firm aspired to be in the market through the CRM

process. Based on the above, the internal vision influenced the development of corporate

strategy by encouraging the investigated firm to invest in its employees in order to be

successful in its interactions with customers.

At the level of customer strategies, the influence of employee-oriented assumptions

became apparent in strategic activities such as customer targeting. Express Service

acknowledged that targeting the right types of employees was as important as selectingthe right types of customers. Therefore, customer segmentation strategies started inter-

nally in the organization by identifying and meeting the needs of quality employees who,

in turn, fulfilled the needs of customers, particularly those who had a special bond with

the organization. It follows that an employee-oriented OC plays an important role in

strategic aspects of the CRM process by cultivating a taken-for-granted focus on cus-

tomer relationships in the strategic planning sub-process.

Employee-Oriented Values: The Means for Successful CRM

The assumption that Express Service is a village underpinned two overt values held by

organizational members, notably trustand empowermentin the work setting. These values

appeared to reflect positively on the information and value creation sub-processes of

CRM, although the evidence is somewhat mixed.

Express Service people believed that trust among organizational participants was

essential if the organization was to excel in customer relationships. In order to cultivate

a feeling of trust in the organization, management of the firm emphasized similarities

rather than differences between all Express Service members. The management claimed

that status differences interfered with establishing a feeling of community and discour-

aged employees from confiding to one another.The positive feelings that Express Service employees experienced due to trusting

relationships in the firm appeared to reflect positively on aspects of the information




14/26

and the value creation sub-processes of CRM (support of Proposition 2a). Particularly,

trust was central to the sub-processes of information acquisition, dissemination and use

as it promoted the cooperation of organizational members in dealing with customer

inquiries and facilitated constructive communication with customers. Besides, it pro-

vided organizational members with an underlying motivation to place the customers

interest ahead of self-interest and deliver superior customer value in terms of high

quality service:

We are a community here. We have very close trusting relations. And this (trust) gives

me the confidence to go an extra mile for the customer and provide exceptional

service. That has got to be instinctive for us! I think this makes the customer to come

back again and again. (Fitter, 11 years service)

Express Service people believed that organizational success is based on empowerment

of employees, notably the discretion of employees to make day-to-day decisions aboutjob-related activities in order to maximize the value delivered to customers. Empower-

ment facilitated the information and customer value sub-processes of CRM by increasing

employee self-efficacy and adaptability. Self-efficacy and adaptability were manifested in

a sense of personal mastery a can do attitude and flexibility, respectively. These

aspects of empowerment drove the responses of Express Service people to a full satis-

faction of customer needs:

When I was a fitter in a centre, we had a family coming one day. It was a man, his wife

and two kids and they were going on holiday. He had come in about a noise in his car.The shock absorber had gone right through the wing of his car. I said, you cant drive

this car! I decided to give him a lend of my car. So, the customer and his family were

away on holiday and his car was being repaired in the centre. Normally if you are not

in an environment where you are supported to take such decisions, you would never

do something like this, provide real value to the customer! (CRM Manager, 10 years

service)

This story demonstrates the emphasis that Express Service placed on the capacity of

employees to make their own decisions in the face of challenges in the service encounter.

Narratives like the above were elevated as a means of emphasizing the importance of

employee self-efficacy and adaptability in customer value delivery. The exemplary action

of the fitter to lend his car to the customer and his family in order to continue with

their trip was an act of empathy that followed a feeling of discomfort expressed in the

customers words, what am I going to do?. Such initiatives were outcomes of empow-

erment that enabled employees to make on-the-spot decisions and adjust their behaviour

in order to completely satisfy customers.

Yet, the ability of front-line and support employees to adjust their actions to the

demands of any occasion also had negative implications for task performance. Such

malleability appeared to increase employee role ambiguity and work-related stress incritical customer situations (e.g. road accidents or complicated customer complaints).

This point is evident in the comments of a Call Centre Consultant:




15/26

You do not know what you are going to get when you pick up the phone. One minute

it could be something dramatic like a car crash and the next minute might be a simple,

little inquiry, like someone looking for a company number. While I like having

flexibility to talk to the customer, this flexibility is often putting a lot of pressure on me.

(Customer Service Consultant, 4 years service)

Therefore, the relationship between employee empowerment and information and

value creation sub-processes of CRM seems to be much more complex than the one

envisaged in Proposition 2b.

Employee-Oriented Behaviours: Making CRM Succeed

According to the case study evidence, employee-oriented behaviours of behaviour-based

performance evaluation, and training and development of employeesappeared to influence positivelyaspects of the performance measurement as well as information and value creation

sub-processes of CRM. These behaviours were closely associated with the enactment of

the corporate brand, which encouraged employee training and development based on

customer and employee needs, and promoted the application of fair performance stan-

dards for job evaluation. In essence, the corporate brand constituted a key artefact

of employee orientation supporting employee-oriented and, hence, customer-oriented

behaviours.

As far as behaviour-based evaluation is concerned, performance assessment of Express

Service was based mainly on a set of measures that captured and compensated com-petences of employees relevant to their roles in the organization. This perspective to

performance control offered a scheme tailored to attend the needs of employees for

promotion in the work environment. One aspect of behaviour-based evaluation is

evident in the words of the Express Service Fitter who pointed out:

We are assessed on how we choose to treat the customer, on how to ensure that

the customer is treated friendly all the times and is happy with the total service

experience . . . on how to give the customer a seat, listen his side of the story, and take

it from there and see what we can do to help. (Fitter, 11 years service)

The case study evidence suggested that behaviour-based evaluation compensated

organizational members on the basis of effort, commitment, teamwork, friendliness, the

capacity to solve problems and share customer information, and other behaviours linked

to the objectives of the CRM process. Management agreed on the fact that behaviour-

based evaluation facilitated performance measurement of the CRM process since it

provided employees with guidance targeted to improve their input in customer commu-

nication and service delivery. Express Service employees proposed that behaviour-based

evaluation released them from the pressure to produce measurable outcomes such as

sales targets and encouraged them to assume responsibility of their job. However, it alsocaused employee confusion about which values and behaviours were desired by man-

agement. A customer service consultant noted that:




16/26

. . . it is a bit contradictory to encourage people to be team players and at the same

time individuals that take initiatives. Several times I am confused on how to do things!

(Customer Service Consultant, 3 years service)

This type of reaction was often encountered between front-line employees who were

unclear on whether they should act as individuals or team players in their interaction

with customers. Indeed, it raised key issues in the implementation of behaviour-based

evaluation in the organization, notably the need for Express Service management to

consider key performance indicators appropriate for different employee roles and char-

acteristics, and to address the balance between employee autonomy and teamwork.

Once more these insights highlight a more complex relationship than the one assumed

in Proposition 3a.

The second category of employee-oriented behaviours referred to the design of

training and development initiatives appealing to the needs of employees. The findings

indicated a positive relationship between employee training and development, on theone hand; and information and value creation sub-processes of CRM, on the other

(support of Proposition 3b). Express Service people claimed that the nature of training

has changed throughout the years to become employee-focused and service-oriented.

Organizational members acknowledged a close relationship between employee training

and the creation of customer value:

Training is focused on customer service. It gets everyone working for a common

goal superior customer value. We are taught that good customer service starts

with customer interaction. We are trained on how to use our voice in telephone orface-to-face communication. We are trained to access easier and quicker customer

information in order to deliver superior service. (Fitter, 4 years service)

Based on the above statement, training and development were put in place in order to

create a supportive environment that would enable employees to effectively deliver value

to customers. Such initiatives assisted employees in handling and disseminating customer

information as well as performing service-related tasks. The case study evidence further

suggested that training and development initiatives constituted a strategic weapon

for ensuring employee commitment to the firm, and thus, preserving the personal bond

between Express Service employees and customers.

Employee Orientation and Performance

The case study evidence provided insights into the positive relationship between

employee orientation and aspects of CRM performance such as quality in service

delivery and customerfirm interactions, customer satisfaction and retention (support of

Proposition 4). The increased emphasis that the organization placed on employee train-

ing and development as well as provision of better working conditions enhancedemployee satisfaction with their jobs and defined employee behaviours towards custom-

ers. This point is illustrated by a Call Centre Consultant whose comments assist in the




17/26

understanding of the link between employee orientation and CRM-related aspects of

performance:

Maybe to someone new starting it is definitely a new experience because she or he

would never have been offered anywhere what is offered here a good bonus or

incentives such as the company car. But if there is a chance of you getting a company

car, you will get it here. There are a lot of things happening in the call centre, like a

lot of clapping when there is a quality award for an employee. If customers hear this

clapping over the phone, they are getting thrilled with the atmosphere and understand

that they are in the hands of a decent company that looks after its employees. (Call

Centre Consultant, 3 years service)

Consequently, employee-oriented efforts of the investigated firm motivated

organizational members to achieve quality in service and customerfirm inter-

actions, and thereby accomplish higher levels of customer satisfaction. The positiveassociation between employee orientation and CRM practice may be inferred by addi-

tional data from company documents and interviews that suggested an increase in

satisfaction and retention both for employees and customers in the duration of this

study.

Specifically, employee satisfaction and retention were measured using relevant data

collected from interviews, questionnaires and focus groups with employees, which were

conducted by external agencies on behalf of Express Service. Employee satisfaction, on

average, reached 80 per cent in call centres and support services, and 65 per cent in

service centres. Employee retention rates followed the same pattern, rising from 60 to70 per cent in call centres and support services, and from 52 to 57 per cent in service

centres. Likewise, customer satisfaction and retention were estimated using survey data

collected at Express Service call centres and information emerging from customer

letters and customer focus-groups and interviews. These data showed that customer

satisfaction levels rose from 80 to 87 per cent while customer retention levels rose from

54 to 64 per cent, much higher than the industry average (Taylor, 2000). Customer

retention levels were higher for existing referral customers, whereas the loyalty card

programme partially attempted to develop new referral customers by stimulating

retention in new customers that used the services of the investigated firm for a short

period.

DISCUSSION AND CONCLUSIONS

Discussion of Findings

In this paper, the authors set out to explore the interface of employee orientation and

CRM by investigating a set of propositions. While relevant literature has considered the

potential association of employee orientation and CRM (cf. Reinartz et al., 2004; Zablah

et al. 2004), this paper provides empirical evidence towards this link and highlightsthe importance of employee orientation for CRM success. This is seemingly the first

research attempt to do so. Particularly, the case study findings demonstrate that an




18/26

employee-oriented OC is related to the CRM process through numerous ways. Figure 2

summarizes the propositions of the study and relevant results. The findings provide

empirical support for Propositions 1, 2a, 3b, and 4, while Propositions 2b and 3a appear

to be partially supported.

Employee-Oriented

Assumptions

The Express Service

Village

Employee-Oriented

Values

Trust

Empowerment

Employee-Oriented

Behaviours

Behaviour-Based

Performance Evaluation

Employee Training &

Development

Employee-Oriented

Artefacts

Corporate Brand

Strategic

Planning

Sub-process

Information

Sub-process

Value Creation

Sub-process

Performance

Measurement

Sub-process

P1: (+)

P2a: (+)

P2b: partially (+)

CRM ProcessEmployee Orientation

Employee Orientation

P4: (+)

P3a:partially(+)

P3b: (+)

Employee-Oriented

Assumptions

The Express Service

Village

Employee-Oriented

Values

Trust

Empowerment

Employee-OrientedBehaviours

Behaviour-Based

Performance Evaluation

Employee Training &

Development

Employee-Oriented

Artefacts

Corporate Brand

Strategic

Planning

Sub-process

Information

Sub-process

Value CreationSub-process

Performance

Measurement

Sub-process

CRM Process

Figure 2. Employee orientation and the CRM process

Source: The authors.




19/26

Particularly, Proposition 1 that argued in favour of a positive link between employee-

oriented assumptions and the strategic sub-process of CRM seems to be supported by the

case study evidence. The emphasis of Express Service on collaboration in the organiza-

tional setting developed a shared understanding that close relationships with internal and

external customers can contribute to the success of the CRM process. This shared

mindset was manifested to a large extent in the strategic orientation of the firm towards

customers. In this regard, the case study findings bear similarity to the extant research

that has suggested explanations of strategic planning in terms of the taken-for-granted

assumptions held commonly in the organization (Schein, 1984). Weick (1983, p. 223)

refers to this premise as presumption logic to strategy development and explains that

OC assumptions help organizational members interpret changes the organization

faces in the environment and provide a basis for strategic action. Similarly, Day and

Nedungadi (1994) stress that OC assumptions are linked to the survival of the firm and

its strategic choices in the business environment.

The family-like assumptions of Express Service were reflected on the values of trustand empowerment in the work environment. The case study evidence supports Propo-

sition 2a that assumed a positive relationship between trust, on the one hand, and the

information and value creation sub-processes of CRM, on the other. Trust in the work

environment had a two-fold effect. Specifically, it facilitated the acquisition, dissemina-

tion and use of customer information; and enabled organizational members to create and

deliver value to customers in terms of superior customer service. In relation to the former

effect suggesting that trust among organizational members facilitated the information

sub-process of CRM, the case study evidence demonstrated that trust in the work setting

enhanced the transmission of (customer) information among organizational participantsand the use of this information to meet customer needs. Similarly, McAllister (1995)

suggests that managements trust in employees enhances their ability to acquire infor-

mation from their interaction with customers and use this information to deliver cus-

tomer value.

As regards the finding that trust facilitated the value creation sub-process of

CRM in the investigated firm, the evidence suggests that trust cultivated benevolence

of partnerships and enhanced employee efforts in order to meet customer needs and

preferences. Sako (1992, p. 39) refers to this idea as goodwill trust and notes that the

precursor to the development of goodwill trust in customerfirm relationships lies

within the organization and the way in which employees relate to each other in the

work setting.

The findings indicate that empowerment of employees could have both positive and

negative effects on elements of the information and value creation sub-processes of CRM

(Proposition 2b). On the one hand, empowerment increased the adaptability and self-

efficacy of front-line and support employees in meeting customer preferences and solving

customer problems. On the other hand, empowerment was associated with high levels of

work-related stress that stemmed from the lack of role clarity in situations in which

employees were faced with critical customer incidents. Therefore, employee empower-

ment becomes a process by which management not only delegates power to employeesbut also provides job descriptions and communication systems to support employee

performance (Conger and Kanungo, 1988).




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The extant literature has explored the importance of employee empowerment and its

relevant constructs, i.e. adaptability and self-efficacy in customerfirm service encounters

as well as in information and value creation activities (cf. Bowen and Lawler 1992). It has

also suggested that empowerment could increase employees frustration with their role or

lead to overconfidence and, in turn, misjudgements of employees in service interactions

(Conger and Kanungo, 1988; Gist, 1987). Building upon the literature and the findings

of this study, it appears that an optimal level of empowerment, that is one that compli-

ments employee ownership with management mentoring, may be beneficial for some

organizations embarking on CRM.[1]

The case study evidence partially supports Proposition 3a that assumed a positive

effect between behaviour-based evaluation systems and the performance measurement

sub-process of CRM. The case study evidence illustrated that the majority of interview

respondents were positively preoccupied towards this approach to performance control.

However, the case study organization needed to articulate coherent and clear perfor-

mance criteria in order to avoid employee confusion with respect to the content ofbehaviour-based control systems. Towards this end, the investigated firm could integrate

financial and non-financial indicators systematically to its current portfolio of metrics (cf.

Reinartz et al., 2004).

With respect to Proposition 3b, the results suggest that employee-oriented behaviours

of training and development are likely to affect positively the information and value

creation sub-processes of CRM. Particularly, employee training and development served

to induce desirable behaviours for successful CRM practice such as generation of

customer knowledge and provision of exceptional service to customers. These findings

corroborate those of relevant studies (Becker and Gerhart, 1996; Conduit and Mavondo,2001) that discuss the effect of training and development on customer intelligence

generation and value delivery.

The case study evidence provides insights into the positive relationship between

employee orientation and aspects of CRM performance (Proposition 4), which involved

quality in service delivery and customer-firm interactions, customer satisfaction and

retention. This finding corroborates the results of relevant literature that examines issues

of satisfaction of employee needs in the organization. In this literature stream, satisfaction

of employee needs is viewed as a means towards provision of exceptional service to the

customers and achievement of customer satisfaction and retention (Dobni et al., 2000;

Hauser et al., 1996). The current study illustrates that employee satisfaction achieved

through trusting employee relationships, and employee training and development may

enhance CRM success.

Implications

This research has significant implications for theory and management practice. As far as

theory is concerned, the case study evidence supports previous work in the context of

relationship marketing and CRM, which has argued in favour of the importance of

employee orientation for the development of customerfirm relationships. The currentstudy contributes to the CRM literature by offering empirical evidence on the link

between components of employee orientation, and strategic and operational aspects of




21/26

the CRM process. In doing so, it addresses suggestions of relevant literature to develop

a better understanding of the role of organizational context and human agency in CRM

practice (cf. Bolton et al., 2004; Donavan et al., 2004; Payne and Frow, 2005; Reinartz

et al., 2004). Particularly, the case study findings showed that the development of close

relationships between the firm and its customers stemmed from an ongoing attention

to employee needs. They suggest that CRM success rests on the ability of employees to

understand and perform their roles in a supportive organizational environment that

promotes employee empowerment, development and compensation. Viewed in this

light, the case study evidence provides an actionable framework to managers in order to

foster an employee-oriented OC in the firm (cf. Bhagat et al., 2007). The findings also

demonstrated how distinctive layers of an employee-oriented OC may influence aspects

of CRM practice. To the best of the authors knowledge, such a systematic endeavour

that investigates the interaction of the CRM process with people-related components of

an OC does not exist so far in the relevant literature.

The analysis of the case study results also contributes insights into the relationshipsbetween the different components of an employee-oriented OC, thus offering a detailed

understanding of the phenomenon of employee orientation in the organization and

filling a void in the literature (cf. Homburg and Pflesser, 2000). This point is emphasized

in the work of Schein (1992), who suggests that future studies should not merely discuss

elements of OC but rather attempt to identify possible associations between these

elements. Particularly, this research demonstrates that the family-like assumption that

Express Service is a Village is indeed reinforced by the existence of employee-oriented

values. Additionally, employee-oriented artefacts were found to have a critical role in the

initiation and development of employee-oriented behaviours.Besides being theoretically insightful, this study has several important managerial

implications. It provides managers with an understanding of the effect of employee

orientation on the CRM process, which expands from strategic planning to performance

measurement activities. The distinct components of employee orientation discussed in

the current study may assist managers to foster corresponding values and behaviours in

the firm or identify problematic areas among different layers of an employee-oriented

OC. The emphasis that Express Service placed on its people was critical not only for

internal integration purposes but also for potential organizational growth and enhanced

performance through CRM practice.

Further, the case study evidence indicates that managers should devote effort and time

on symbolic management (Schein, 1984) in order to promote customer-oriented behav-

iours of employees and strengthen the success of the CRM process in the organization.

Towards this direction, artefacts may function as levers that promote the development of

long-lasting intimate relationships with employees and customers. To elaborate, the case

study evidence suggests that symbols such as, corporate brands serve to communicate the

organizational vision and inspire desirable behaviours in reference to customers (cf.

Homburg and Pflesser, 2000; Phillips and Brown, 1993).

Additionally, the current research suggests that behaviour-based performance

appraisal appears to be appropriate for assessing the success of CRM in the organization.This is an interesting finding that can challenge the seemingly considerable emphasis that

numerous firms employing CRM have placed on incentive systems, which primarily




22/26

reward sales rather than quality in service delivery and customer-firm interactions (cf.

Crosby et al., 1990). According to the case study evidence, behaviour-based performance

assessment appeared to be easy for employees to understand and helped them

identify areas of improvement in their CRM responsibilities. As stated by George

(1990), behaviour-based evaluation promotes employee adaptability and self-efficacy to

customerfirm dialogue and service delivery activities. However, this approach to per-

formance control requires that management should seek links between employee behav-

iour and expected performance outcomes that match the goals of the CRM process.

Approaching employee orientation through the OC lens, as the current research has

done, entails that a substantive capital investment in human resource policies and

activities should be made. This might not be appropriate or feasible for service firms

operating under different organizational and environmental contingencies. To illustrate,

in relation to organizational factors, firms with limited resources or firms wishing to serve

their customers at a very low-cost basis may not be encouraged to invest in the devel-

opment of multi-skilled service-oriented employees because such an investment escalatescosts and product prices. Similarly, hierarchical organizations distinguished by a modus

operandi that favours centralization of power and localized use of information are likely

to deemphasize the concept of employee orientation and the potential benefits of team-

work and employee participation in decision-making (Quinn and Rohrbaugh, 1983).

Employee orientation lies also on the assumption that organizational members are

driven by self-actualization, self-development and self-esteem needs whose satisfaction is

reflected on task performance. It follows that an emphasis on employee orientation may

not be a viable option for firms staffed with employees characterized by low growth needs

(Bowen and Lawler, 1992; Tourish and Robson, 2006).With respect to the external context, firms operating in stable environments, in which

the customer experience is relatively simple and predictable, are likely not to benefit from

aspects of employee orientation such as empowerment and self-efficacy. This can happen

because in these firms management may predict and control most events as well as

identify responses in a fairly accurate way. Likewise, when customer value speed highly

in their transactions with front-line employees, elements of employee orientation that

enhance employee adaptive behaviour and ability to engage in a personalized dialogue

with the customers can slow things down and dissatisfy customers.

Based on the above, it may be inferred that an employee-oriented OC seems to be

appropriate for high-involvement organizations following an egalitarian management

style and employing people with high growth needs; or firms operating in high-velocity

environments whose customers prefer customization and personalization of the con-

sumption experience. The case study evidence may encourage service firms to focus on

employee orientation as a means of ensuring the success of the CRM process. Yet, before

doing so, management need to consider whether such an approach best meets the needs

of employees and customers.

LimitationsThe study faces potential limitations that can provide suggestions for further research,

four of which are addressed here. First, a key objective of this research was to explore the




23/26

interface of employee orientation and CRM practice. In particular, the authors con-

ducted an in-depth case study in a CRM best practice firm in an attempt to capture

context effects on CRM success (cf. Bolton et al., 2004). Given the limited generalizabil-

ity of a single case study design, further research may benefit from large-scale longitu-

dinal studies in order to identify causeeffect relationships between employee orientation

and CRM practice, and extrapolate findings in a population of firms. Such a research

approach may minimize possible interview effects or inversed causeeffect relationships

occasionally associated with the collection of qualitative data. Hence, further enquiry

into the CRM area can investigate whether employee orientation constitutes an ante-

cedent of CRM practice or vice versa.

Second, a limitation of this research can be found in the conceptualization of the

notions of employee orientation and CRM practice for discussing the case study find-

ings. Even though the definitions of CRM and employee orientation used in the

current paper were based on an extensive search of relevant literature and the case

study insights, they are not the sole ones proposed in the literature. This premise isparticularly suited to the area of CRM given the considerable debate in the relevant

literature (Verhoef, 2003; Zeithaml et al., 2001) regarding the meaning of this term.

Future studies may build upon alternative conceptualizations of employee orientation

and/or CRM practice in order to investigate the critical role of supportive organiza-

tional context for CRM success. For instance, studies can approach CRM practice in

terms of elements such as new customer acquisition, customer retention and recovery

as well as relationship termination. Additionally, further research can potentially

provide different conceptualizations on the link among employee satisfaction, customer

satisfaction and CRM performance than that attempted in this paper (cf. Donavanet al., 2004). For example, future research may consider whether variables such as

superiority of a companys products or technological excellence of a firm could have

an intermediate effect on the relationship between employee orientation and CRM

performance.

Third, future studies may concentrate on the development of constructs and mea-

sures in order to capture the strategic, information, value creation and performance

measurement sub-processes of CRM. This requires an in-depth understanding of

CRM practice, which may be achieved through qualitative and quantitative enquiry.

For instance further research may concentrate on the strategic planning sub-process of

CRM and investigate the impact of corporate and customer strategies on CRM adop-

tion and performance. Similarly, future research may consider the integration of

the voice of the customer into the value creation sub-process and examine whether

customer-firm value co-production is likely to facilitate or impede the innovativeness of

the firm.

Fourth, an issue that deserves further attention refers to the performance conse-

quences of CRM practice. The potential of CRM to deliver benefits to the firm and the

customer seems to be curtailed by difficulties in performance measurement of CRM

activities (Payne and Frow, 2005). Further studies may investigate the link of employee

orientation and a broader range of aspects linked to CRM performance, notablycustomer lifetime value, customer equity, customer share of wallet and profitability

(Reinartz et al., 2004; Rust et al., 2002).




24/26

ACKNOWLEDGMENTS

We would like to thank the Editor and three anonymous reviewers for their useful comments on previousversions of this paper.

NOTE

[1] The authors would like to thank an anonymous reviewer for pointing out this issue.

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