Influence of Client Relationship Management Strategy on Organisational Performance.

Abstract

From the system view of organisations, this study investigated how client relationship management (CRM) strategy responses of architectural firms to market conditions influence their firm performance. Previous studies have proposed empirical models that explored this relationship in several organisational contexts, but there is a dearth of studies that explained the link between CRM strategy and firm performance in the context of architectural firms. The empirical model of the current study closed this gap by explaining how the CRM strategy features used by architectural firms influence their firm performance. A questionnaire survey of 195 samples of randomly selected architectural firms was conducted in Lagos, Nigeria. 82 copies of the questionnaire (42% response rate) were retrieved and the nominal and ordinal data obtained were subjected to descriptive, factor and categorical regression analyses using Statistical Product and Service Solutions (SPSS) software (IBM SPSS Statistics 23). The regression analysis revealed that client collaboration, client communication and service customisation dimensions of CRM strategy had a statistically significant influence on the firms' overall performance. The model of this study contributed to the empirical literature by revealing how the strategic behaviour of architectural firms in the industrial market optimizes their performance. Managerial implications and areas for further studies were stated.