Developing a Framework to Integrate Customers’ Knowledge Management and Customer Relationship Management in the Banking Industry

Document Type : Research Paper

Authors

1 PhD. Candidate, Department of Business Management, Roodehen Branch, Islamic Azad University, Roodehen, Iran.

2 Assistant Prof., Department of Business Management, Firouzkouh Branch, Islamic Azad University, Firouzkouh, Iran.

3 Assistant Prof., Department of Business Management, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran.

Abstract

Objective
With the emergence of private banks in the Iranian banking system during the last decade, there is an intense competition for monetary resources in the country's financial markets. In the meantime, state banks have also struggled to attract and retain customers. The emergence of competitors in this industry highlights the need to use customers’ knowledge and manage it to reach a new source of competitive advantage. The banking environment needs such a management due to high a competition, relatively mature customers’ expectations, and the significant interaction between the bank and the customer. Although there is general agreement on the importance of the role of customers’ knowledge management and customers’ relationship management, there is a lack of an integrated model that measures the role and impact of all functions of such managements. Therefore, the present study seeks to explain an integrated model of customers’ knowledge management and customers’ relationship management based on a competitive approach in the Iranian banking industry.
Methodology
This fundamental research is exploratory in nature. The semi-structured in-depth interview approach along with library studies were used for data collection. The statistical population of this study includes experts in managerial, banking, and academic topics. Purposeful sampling and snowball sampling were used to identify the experts, where the adequacy of the data was obtained after 16 interviews.
Findings
The analysis of the interviews indicated that the ultimate extracted codes were classified into 50 concepts and 18 main categories. Finally, based on the systematic approach in grounded data theory, the identified codes were placed into 6 nuclear classes, including phenomenon-orientation, causal conditions, contextual conditions, intervening conditions, strategies, and consequences
Conclusion
According to the results, the following factors were extracted: causal categories (rapid response of the bank to the external environment, implementation of international standards in customer orientation and social responsibility of the bank), central categories (determining the management framework, manpower supply, determining strategies, and value creation for the customers), strategic categories (integrated marketing, development of technology and novel banking services, strategic alliance, and delta model), contextual categories (changing the approach of senior management, liberalization, and deregulation by the government), interventionist categories (culture of bank empowerment and dynamic competition), and consequential categories (gaining competitive advantage for the bank, customer satisfaction, and strengthening banking services in the community). Hence, these categories are influential for the success of the integrated customer knowledge management and customer relationship management

Keywords


Alam Ahearne, M., Rapp, A., Mariadoss, B.J. & Ganesan, S. (2012). Challenges of implementation in business to business markets: a contingency perspective. Journal of Personal Selling & Sales Management, 32(1), 117-129.
Al-Hyari, H.S. (2016). Customer Knowledge Management towards Customer Attraction from Managers' Perspective; a Case Study of Arab Bank in Amman City, Jordan. Journal of Information and Knowledge Management, 6(11).
Amiri Eghtaei, R. & Teimourpour, B. (2014). Designing a structural model of bank customer knowledge management using interpretive structural modeling. Journal of Human Resource Management Research, 4(3), 1-22. (in Persian)
Ashouri, M., Sharif Khani, M. & Tarokh, M. J. (2014). Development of Customer Knowledge Management Process Model Using Customer Relationship Management Systems. Technology Development Quarterly, 10(40), 62-68. (in Persian)
Bazargan, A. (2008). An Introduction to Qualitative and Mixed Research Methods: Common Approaches in Behavioral Sciences. Tehran: Didar Publications. (in Persian)
Beijerse, R.P. (1999). Questions in KM: defining and conceptualizing a phenomenon. Journal of Knowledge Management, 3(2), 94-109.
Belbaly, N., Benbya, H. & Meissonier, R. (2007). An empirical investigation of the customer knowledge creation impact on NPD Performance. in: Proceedings of 40th Annual Hawaii International Conference on System Sciences.
Bose, R. & Sugumaran, V. (2009). Application of knowledge management technology in customer relationship management. Knowledge and Process Management, 10, 3–17.
Bueren, A., Schierholz, R., Kolbe, L. M. & Brenner, W. (2005). Improving performance of customer-processes with KM. Business Process Management Journal, 11(5), 573-588.
Chen, I. J. & Paulraj, A. (2004). Understanding supply chain management: critical research and a theoretical framework. International Journal of Production Research, 42(1), 131-163.
Chiran, C. & Jayaaundara, A. (2008). Knowledge management in banking industries: Uses and opportunities. Journal of the University Librarians Association of Sri Lanka, 12, 68-84.
Coussement, K. & Van Den Poel, D. (2008). Integrating the voice of customers through call center emails into a decision support system for churn prediction. Information & Management, 45, 164–174.
Davenport, T. & Grover, V. (2001). Knowledge Management. Journal of Management Information Systems, 18(1), 3-4.
Davenport, T. H. & Prusak, L. (1998). The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research, 68(2), 360-370.
Divandari, A., Mohammadian, M., Shami Zanjani, M. & Abedi, E. (2014). Develop and explain the framework for establishing customer knowledge management in private Iranian commercial banks. Business Management, 6(1), 41-66. (in Persian)
Dotsika, F. & Patrick, K. (2013). Collaborative KM for SMEs: a framework evaluation study. Information Technology & People, 26(4), 368-382.
Flint, D. J., Woodruff, R.B. & Fisher Gardial, S. (2002). Exploring the Phenomenon of Customers' Desired Value Changes in a Business-to-Business Context. Journal of Marketing, 66(4), 102-117.
Gable, G. G., Sedera, D. & Chan, T. (2008). Re-conceptualizing information system success: the IS-impact measurement model. Journal of the Association for Information Systems, 9, 377–408.
Galvão, M. B., de Carvalho, R. C., de Oliveira, L. A. B. & de Medeiros, D.D. (2018). Customer loyalty approach based on CRM for SMEs. Journal of Business & Industrial Marketing, 33(5), 706-716.
Garcia-Murillo, M. & Annabi, H. (2017), Customer knowledge management. Journal of the Operational Research Society, 53(8), 875-884.
Garrido-Moreno, A., Lockett, N. & Garcia-Morales, V. (2015). Exploring the role of knowledge management practices in fostering customer relationship management as a catalyst of marketing innovation. Baltic Journal of Management, 10(4), 93-412.
Gebert, H., Geib, M. & Kolbe, L. (2013). Knowledge-enabled customer relationship management: integrating customer relationship management and knowledge management concepts. Journal of Knowledge Management, 7, 107–1107.
Gebert, H., Malte. G. & Gerold R. (2002). Towards customer knowledge management: Integrating customer relationship management and knowledge management concepts. Internatinal Conference on Electronic Business, Taipei-Taiwan.
Geib, M., Kolbe, L. M. & Brenner, W. (2006). CRM collaboration in financial services networks: a multi-case analysis. Journal of Enterprise Information Management, 19, 591–607.
Gibert, M., Leibold, M. & Probst, G. (2002). Five styles of customer knowledge management and how smart companies put them into action. Journal of European Management, 20(5), 459–469.
HaghighNasab, M., GhodratAbadi, L. & Shafie, S. (2019). The effect of senior managers' commitment, knowledge management and organizational learning on intellectual capital. Business Management Quarterly, 11(2), 357-374. (in Persian)
HajiHeydari, N. & Amouei Oujaki, A. (2013). Development of Customer Knowledge Management Maturity Model: A Study in Iranian Banks. Journal of Iran Management Sciences, 8(32), 47-87. (in Persian)
HassanGholipour, T., SeyyedJavadin, S.R., Rousta, A. & Khanlari, A. (2012). Evaluation of customer relationship management process in private commercial banks. Information Technology Management, 4(10), 41-62. (in Persian)
Hemmati Rad, F. & Moemeni, H. (2017). The relationship between knowledge management of police employees in relation to customers. Police Organizational Development, 14(61), 113-134. (in Persian)
Henning, G., Geib, M., Kolbe, L. & Brenner, W. (2013). Knowledge-enabled customer relationship management: integrating customer relationship management and knowledge management concepts. Journal of Knowledge Management, 7, 107–123.
Iriana, R. & Buttle, F. (2007). Strategic, operational, and analytical customer relationship management. Journal of Relationship Marketing 5, 23–42.
Kebed, A.M., Tegegne, Z.L. & Wright, L.T. (2018). The effect of customer relationship management on bank performance: In context of commercial banks in Amhara Region, Ethiopia. Journal of Cogent Business & Management, 5(1).
Khaki, G. (2012). Research method in management (5th edition). Tehran: Rahnama Publications. (in Persian)
Khalifa, M. (2008). Knowledge management systems success: a contingency perspective. Journal of Knowledge Management, 12, 119–132.
Khodakarami, F. & Chan, Y. E. (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), 27-42.
Khodakarami, F. & Yolande, E. C. (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51, 27–42.
Kim, J., Suh, E. & Hwang, H. (2003), A model for evaluating the effectiveness of CRM using the balanced scorecard. Journal of Interactive Marketing, 17(2), 5-19.
King, S. F. & Burgess, T. F. (2008). Understanding success and failure in customer relationship management. Industrial Marketing Management, 37, 421.
KumerRoy, T. (2007). Customer Knowledge Management (CKM) in the e-Business Environment (Case study Swedish Banks). Master Thesis, Luleal University oF Technology.
Kunttu A. (2011). Customer knowledge management in customer service, case Elomatic Oy. Bachelor’s Thesis, Lappeenranta University of Technology.
Lambe, P. (2008). Knowledge-based CRM: a map. Available at: www.greenchameleon.com /thoughtpieces/kcrm.pdf.
Lambert, D. (2010). Customer relationship management as a business process. Journal of Business & Industrial Marketing, 25(1), 4-17.
Li, P. (2001). The critical success factors of customer relationship management (CRM) technological initiatives. Doctoral thesis, Concordia University Montreal.
Liew, C.A. (2008). Strategic integration of knowledge management and customer relationship management. Journal of Knowledge Management, 12, 131–146.
Madhoushi, M. & Saghari, F. (2010). Survey of customer knowledge management impact on customer relationship Management: (Iranian study). International Journal of Business and Social Science, 2(20), 215-226.
McEvily, B. & Marcus, A. (2019). Embedded ties and the acquisition of competitive capabilities. Strategic Management Journal, 26(11), 1033-1055.
Mendoza, L.E (2006). Critical Success Factor for CRM Strategy. Informal and Technology, 117-131.
Migdadi, M. M. (2020). Knowledge management, customer relationship management and innovation capabilities. Journal of Business & Industrial Marketing, Vol. ahead-of-print, No. ahead-of-print, https://doi.org/10.1108/JBIM-12-2019-0504.
MirSepasi, N. & Hosseinzadeh, N. (2018). The impact of knowledge management on customer satisfaction with emphasis on the role of employee empowerment (Case Study: Central Offices of Ghavamin Bank in Tehran). Journal of Human Resource Studies, 8(30), 107–126. (in Persian)
Mousa Khani, M., Haghighi, M. & TorkZadeh, S. (2012). Providing a model for customer loyalty using customer knowledge management in the country's banking industry (Private Banks). Business Management, 4(12), 147-164. (in Persian)
Nejatian, H., Sentosa, I., Piaralal, S.K. & Bohari, A.M. (2011). The influence of customer knowledge on CRM performance of Malaysian ICT companies: a structural equation modeling approach. International Journal of Business Management, 6(7), 181-198.
Petter, S., Delone, W. & Mclean, E. (2008). Measuring information systems success: models, dimensions, measures and interrelationships. European Journal of Information Systems, 17, 236–263.
Pine, J.B., Peppers, D. & Rogers, M. (1995). Do You Want to Keep Your Customers Forever? Harvard Business Press.
Ping, L., & Kebao, W. (2010). Knowledge management in banks. International Conference on E-Business and E-Government, China: IEEE.
RezaeiNour, J., Shah Hosseini, M. A. & Khosravi, S. (2014). Presenting a conceptual model based on the factors affecting the implementation of knowledge management system in the group of system partners. Technology Development Management Quarterly, 1(4), 79-104. (in Persian)
Ritter, T. & Walter, A. (2003). Relationship-specific antecedents of customer involvement in new product development. International Journal of Technology Management, 26(5), 482-501
Salojarvi, H., Sainio, L. M. & Trakiainen, A. (2010). Organizational Factors Enhancing Customer Knowledge Utilization in the management of Key Account Relationship. Industrial Marketing Management, 39(8), 395-1402.
Salomann, H., Dous, M., Kolbe, L. & W. Brenner, W. (2006). Rejuvenating customer management: how to make knowledge for, from and about customers work. European Management Journal, 23, 392–403.
Shang, S. S. C., Li, E. Y., Wu, Y. & Hou, O. C. L. (2011). Understanding Web 2.0 service models: a knowledge-creating perspective. Information & Management, 48, 178–184.
Shi, J. & Yip, L. (2017). Driving innovation and improving employee capability: the effect of customer knowledge sharing on CRM. The Business Review, 7(1), 107-112.
Sofianti, T. D., Suryadi, K., Govindaraju, R. & Prihartobo, B. (2010). Customer knowledge co creation process in new product development. Proceedings of the World Congress on Engineering, 1, 1-8.
Strauss, A. & Corbin, J. (1998). Basics of Qualitative Research: Grounded Theory Procedures and Technique (2nd Edition), Sage, Newbury Park, London.
Swan, J., Newell, S. & Robertson, M. (2000). KM–when will people management enter the debate? 34th Hawai’i international conference on system sciences, IEEE Computer Society Press, Maui, 70.
Taqavi Fard, M. T., Waqef Koudhi, M. & Salehi Moghadam, S. (2015). The effect of knowledge management on the success of customer relationship management by considering the mediating effects of organizational factors. Journal of Information Technology Management Studies, 3(21), 4-77. (in Persian)
Teo, T. S. H., Devadoss, P. & Pan, S.L. (2016). Towards a holistic perspective of customer relationship management (CRM) implementation: a case study of the Housing and Development Board, Singapore. Decision Support Systems, 42, 1613–1627.
Tseng, S.M. (2016). Knowledge management capability, customer relationship management and service quality. Journal of Enterprise InformationManagement, 29(2), 202-221.
ValiPour, M. A., MalekAkhlagh, E. & PourHassan, R. (2015). Investigating the effect of customer knowledge management on improving relationships with industrial customers (Auto parts manufacturers located in Qazvin industrial estates). Journal of Development and Transformation Management, 20, 81-88. (in Persian)
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180.
Winer, R.S. (2011). A framework for customer relationship management. California Management Review, 43, 89–105.
Xu, M. & Walton, J. (2015). Gaining customer knowledge through analytical CRM. Industrial Management+Data Systems, 105, 955–971.
Yaghoubi, M., AmiriFini, S.H. & Rahmati NajarKalaee, F. (2016). Investigating the relationship between customer knowledge management and customer relationship management tasks in a military hospital. Journal of Military Medicine, 18(4).
(in Persian)
Yang, Q., Liu, Y. & Li, Y. (2018). How do an alliance firm’s strategic orientations drive its knowledge acquisition? Evidence from sino-foreign alliance partnership. Journal of Business & Industrial Marketing, 34(2), 505-517.
Zhang, J. & Zhu, M. (2019). When can B2B firms improve product innovation capability (PIC) through customer participation (CP)? The moderating role of inter-organizational relationships? Journal of Business & Industrial Marketing, 34(1), 12-23.