Abstract:
This study investigates the relationship between CRM practices, Innovation capability, and
Firm performance. And the research investigates the role of innovation capability in
organizational performance and CRM practice. So, the study makes a contribution by
integrating organizations' CRM practices with their innovation capability process for
creating firm performance. So, the study's main goal was to contribute to a better
understanding of the role of innovation capability in mediating the relationship between
CRM practices and firm performance.
Structured questionnaires were used to collect data from 212 banking employees in the
Batticaloa district. So, the units of analysis were four selected banks in the Batticaloa
district. Correlation, simple regression, and multiple regression analysis were used to test
research objectives and hypotheses. The results show that results indicate that CRM
practices initiatives have a significant influence on an organization's performance, that
CRM activities result in a strong innovation capability, that innovation capability provides
a competitive advantage by enhancing the firm performance, and that innovation capability
mediates the relationship between CRM practices and firm performance. So, the findings
indicate that innovation capability mediates the relationship between CRM practices and
firm performance.
Hence, this research will help managers/employers in investing in CRM activities and
develop strong innovation capability to attract a variety of stakeholders. It will also assist
businesses in focusing on an appealing value proposition in order to attract various
stakeholders, primarily job seekers. This study adds to the literature on CRM practices and
innovation capability by proposing a statistically tested model of innovation capability
mediation for the creation of firm performance. The research examines the relationships
between CRM practices, firm performance, and innovation capability from the perspective
of the employee.
Key words: Customer Relationship Management, Firm performance, Innovation
capability.
