The Mediating Role of Relationship Quality Among Small and Medium Enterprises in Nairobi County, Kenya
Main Article Content
Keywords
Electronic customer relationship, relationship quality, small medium enterprise, Kenya
Abstract
The study aimed to analyze the mediating role played by relationship quality on the link between electronic customer relationship management strategy and performance of SMEs in Nairobi County, Kenya. In this research, relationship quality composed of trust, commitment, and satisfaction. Key findings indicate that relationship quality mediates the relationship between electronic customer relationship management strategy and the performance. Capability to broaden customer knowledge and extend successful relationships with customers is laid upon the organization’s ability to identify with customers, their individual preferences, expectations and varying needs. On mediation of relationship quality, satisfied customers are more likely to share positive experiences with others, leading to positive marketing. This can attract new customers to the SME, increasing its customer base. Additionally, a positive reputation built on strong relationships can enhance the SME’s brand image, attracting more customers and driving sales. Loyal customers who have a positive relationship with the SME are more likely to become advocates for the business. They can provide valuable feedback and testimonials, which can be utilized by the SME for product/service improvement and marketing purposes. This feedback loop ensures that the SME stays attuned to customer needs, leading to the development of products/services that align with customer preferences, ultimately driving sales and enhancing performance
References
AlTaweel, I. R., & Al-Hawary, S. I. (2021). The mediating role of innovation capability on the relationship between strategic agility and organizational performance. Sustainability, 13(14), 7564.
Benzidia, S., & Makaoui, N. 2020. Improving SMEs performance through supply chain flexibility and market agility: IT orchestration perspective. Supply Chain Forum, 21(3): 173–184. https://doi.org/10.1080/16258312.2020.1801108
Cardoni, A., Kiseleva, E., & Bellucci, A. 2023. The quality of SMEs stakeholder communication during strategic crises: The case of Italian unlisted SMEs. Business Strategy and the Environment, 32(6): 3292–3308. https://doi.org/10.1002/bse.3300
Çelik, K., & Karakaş, A. (2021). The effect of electronic customer relationship management on perceived customer relationship quality and customer loyalty. JOEEP: Journal of Emerging Economies and Policy, 6(2), 382-393
Combe, I. A., Rudd, J. M., Leeflang, P. S., & Greenley, G. E. (2012). Antecedents to strategic flexibility: Management cognition, firm resources and strategic options. European Journal of Marketing, 46(10), 1320-1339.
Commission, E., Directorate-General for Internal Market Entrepreneurship and SMEs, I., Centre, J. R., Di Bella, L.,
Katsinis, A., et al. 2023. Annual report on European SMEs 2022/2023 – SME performance review 2022/2023. Publications Office of the European Union. https://doi.org/doi/10.2760/028705
Dehghanpouri, H., Soltani, Z., & Rostamzadeh, R. (2020). The impact of trust, privacy and quality of service on the success of E-CRM: the mediating role of customer satisfaction. Journal of business & industrial marketing, 35(11), 1831-1847.
Efrat, K., & Øyna, S. (2021). An interaction orientation approach to SME-Intermediaries relationships. European Management Journal, 39(4), 508-520.
Enrique, D. V., Lerman, L. V., Sousa, P. R. de, Benitez, G. B., Bigares Charrua Santos, F. M., et al. 2022. Being digital and flexible to navigate the storm: How digital transformation enhances supply chain flexibility in turbulent environments. International Journal of Production Economics, 250. https://doi.org/10.1016/j.ijpe.2022.108668
Gottfredson, R. K., Wright, S. L., & Heaphy, E. D. 2022. A critical review of relationship quality measures: Is a fresh start needed? An agenda to move forward. Journal of Occupational and Organizational Psychology, 95(3): 624–659. https://doi.org/10.1111/joop.12395
John, W. (2019). Scale development and construct validity of organizational capital in customer relationship management context: a confirmatory factor analysis approach. Business Perspectives and Research, 7(1), 76-91.
Kaberia, S. K., & Muathe, S. (2021). Effect of Covid-19 pandemic on performance of women owned micro, small and medium enterprises in Kenya. Int'l J. Soc. Sci. Stud., 9, 7.
Khaligh, A. A., Miremadi, A., & Aminilari, M. (2012). The impact of eCRM on loyalty and retention of customers in Iranian telecommunication sector. International Journal of Business and Management, 7(2), 150
Koech, R. K. (2022). Relationship between human resource information system and management of human capital at James Finlay limited, Kenya (Doctoral dissertation, University of Kabianga).
Kwiatek, P., Morgan, Z., & Thanasi-Boçe, M. 2020. The role of relationship quality and loyalty programs in building customer loyalty. Journal of Business and Industrial Marketing, 35(11): 1645–1657. https://doi.org/10.1108/JBIM-02-2019-0093
Liu, H. M. 2021. Effect of partnership quality on SMEs success: Mediating role of coordination capability and organisational agility. Total Quality Management and Business Excellence, 32(15–16): 1786–1802. https://doi.org/10.1080/14783363.2020.1773782
Mang’unyi, E. E., Khabala, O. T., & Govender, K. K. (2017). The relationship between e-CRM and customer loyalty: a Kenyan Commercial Bank case study. Banks & bank systems, (12,№ 2), 106-115.
Mansor, M. F., Abu, N. H., Halim, H. A., & Ahmad, N. H. 2022. Revisiting SMEs’ Business Strategy: Shifting Outsourcing to Crowdsourcing Practices to Enhance SMEs’ Performance. Jurnal Pengurusan, 66. https://doi.org/10.17576/pengurusan-2022-66-07
Monteiro, N. F. D. P. S. (2013). E-CRM and relationship quality: Exploratory research in the portuguese banking sector (Doctoral dissertation, Universidade de Lisboa (Portugal)).
Nejatian, M., Zarei, M. H., Rajabzadeh, A., Azar, A., & Khadivar, A. (2019). Paving the path toward strategic agility: a methodological perspective and an empirical investigation. Journal of Enterprise Information Management, 32(4), 538-562.
Taghipourian, M. J., Hatami, S., & Chalous, I. (2019). E-CRM on the Relationships Quality and Its Consequences: Evidence from Iranian Private Banks. Journal of Information Engineering and Applications, 9(5), 1-14.
Vecchiato, R. (2015). Creating value through foresight: First mover advantages and strategic agility. Technological Forecasting and Social Change, 101, 25-36.
Xuan, P. A. N., Shuwei, Z. A. N. G., Yiyang, H. U., & Jinyang, L. I. U. (2020). Identifying the positive sides of power use between (in) congruence in distributive fairness perception and supplier-buyer relationship quality. Industrial Marketing Management, 91, 362-372.
Article Sidebar
Article Details
Shadrack Cheruiyot Rotich , Department of Management Science, School of Business and Economics, Moi University, P.O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Department of Management Science, School of Business and Economics, Moi University, P.O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Joyce Komen , Department of Management Science, School of Business and Economics, Moi University, P.O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Department of Management Science, School of Business and Economics, Moi University, P.O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Josephat Cheboi , Department of Accounting and Finance, School of Business and Economics, Moi University, P.O. Box 3900 - 30100, Kesses, Eldoret, Kenya
Department of Accounting and Finance, School of Business and Economics, Moi University, P.O. Box 3900 - 30100, Kesses, Eldoret, Kenya