IngentaConnect Investigating the e-CRM activities of Irish SMEs

Abstract:

Purpose - Relationship marketing principles have seldom been applied to the small- and medium-sized enterprise (SME). The purpose of this paper is to develop what is a striking link by presenting empirical evidence on the role of internet technologies in the customer relationship management activities of Irish SMEs. More specifically, this is a comparative study investigating electronic-customer relationship management (e-CRM) in international and domestic firms. The nature and role of e-CRM is assessed, the strategies behind e-CRM delineated, and the ensuing benefits and challenges revealed. Design/methodology/approach - The paper has an exploratory outlook and a quantitative approach to data collection is adopted to facilitate broad classification in an under researched area. A self-completion questionnaire is distributed to a sample of 1,445 SMEs. A response rate of 20 per cent is obtained, providing 286 usable responses. Univariate and bivariate analyses were performed using SPSS. Findings - The findings of this paper confirm that SMEs are implementing fundamental e-CRM practices. Those firms serving international markets tend to place greater emphasis on e-CRM and are reaping greater benefits. Benefits range from enhanced customer service, reduced business cost, increased sales, and improved profitability. Challenges are few, but centre on a preference for face-to-face relationships and a lack of government support. Practical implications - It is hoped that this exploratory research has laid the foundation for further examination of e-CRM in the SME context. Future research will add explanation through in-depth qualitative methods, while the potential exists to replicate the study in other countries. The authors conclude that e-CRM can and must move on to a more strategic and integrated level if SMEs in Ireland are to compete both locally and globally. Originality/value - This paper has shed light on the marginalised subject of e-CRM in SMEs. For SMEs operating in a peripheral economy such as Ireland, the benefits to be gained from e-CRM are lucrative. SMEs viewing their market beyond national borders are using e-CRM to achieve a range of business benefits. The quantitative methodology adopted has provided an exploratory, yet solid, insight into an important area for academics and practitioners.

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