Does Knowledge Management and Organizational Culture Still Out of

Consideration in Achieving CRM Success? A Survey on Some Indonesian

Academicians and Practitioners

Edhi Juwono and Yohanes Temaluru

Faculty of Economics and Business, Perbanas Jl. Perbanas, Jakarta Selatan 12940, Indonesia

Keywords: CRM Success, Knowledge Management, and Corporate Culture.

Abstract: Nowadays, we are entering the era of the knowledge-based economy. The era is characterized by factors such

as technological innovation, increased competitiveness, and the global nature of markets. The second and

third characteristics relate to a customer: competition is a situation where companies in an industry scramble

customer; the market is an entity consist of customers. One of the concerns regarding customers is establishing

a relationship with the customer—it is known as customer relationship management (CRM). Therefore, this

study is intending to investigate the impact of knowledge management on CRM success with the moderation

of corporate culture. The data were obtained through an electronic questionnaire, by random sampling,

fulfilled by some academician, consultant, and practitioners in information systems, and it involved 31

respondents. The result shows that for some Indonesian academicians and practitioners, CRM success does

not deal with knowledge management and organizational culture.

1 INTRODUCTION

Some people considered that we are entering the

knowledge-based economy. The knowledge-based

economy is characterized by factors such as

technological innovation, increased competitiveness,

and the global nature of markets (Maroofi and

Dehghani 2013). The second and third characteristics

relate to a customer: competition is a situation where

companies in an industry scramble customers; market

is an entity consist of customers or consumers. It

means a customer is a dominant external factor of an

organization, it is affirmed by Croteau and Li that

business organizations considered their customers as

the most important assets (Nejatian, Sentosa and

Piaralal 2011). As an important asset, fair enough, if

customers need special attention. One of the concerns

regarding customers is establishing a relationship

with the customer—it is known as customer

relationship management.

Over the past few years, customer relationship

management (CRM) has attracted much attention

among academicians and executives. CRM is

considered as the dynamic topics of the new

millennium. It is considered as an organizations’ key

factor of success (Bhat and Darzi 2016).

According to Gebert et al. (2003), Susanty et. Al.

(2016) besides CRM, a company also needs

knowledge management (KM) for supporting the

business activities, and there are many studies that

described the relationship between CRM and KM.

Garrido-Moreno & Padilla-Meléndez (2011)

analyzed the impact of KM and CRM technology on

CRM success through organizational variables.

Allameh et al. (2012) put KM and CRM as

independent variables and customer knowledge

management as dependent variables. They also put

interaction management and channel management as

mediating variables.

Based on those studies, this study is going to

explore the relationship between KM and CRM with

the intervening of the corporate culture.

There are several recent studies regarding

customer relationship management (CRM) in relation

with knowledge management (KM). Allameh,

Shahin, and Tabanifar (2012) did not put CRM in

relation with and KM, but they put CRM and KM as

independent variables and customer knowledge

management (CKM) as the dependent variable. But,

Garrido-Moreno, Lockett, and Garcia-Morales

(2011) found that KM is a determinant factor of CRM

success, and it is confirmed by Garrido-Moreno and

Juwono, E. and Temaluru, Y.

Does Knowledge Management and Organizational Culture Still Out of Consideration in Achieving CRM Success? A Survey on Some Indonesian Academicians and Practitioners.

DOI: 10.5220/0008428101170120

In Proceedings of the 2nd International Conference on Inclusive Business in the Changing World (ICIB 2019), pages 117-120

ISBN: 978-989-758-408-4

117

Padilla-Melndez (2011). Hosseini, Nematib, and

Sadeghi (2013) in their study also found that KM had

a positive and significant relationship with CRM.

Maroofi and Dehghani (2013) also found that KM

positively linked with CRM. Once again Garrido-

Moreno, Lockett, and Garcia-Morales (2015) found

that there was a substantial effect of KM processes on

CRM performance. Based on those findings, this

study proposed a hypothesis: H1: knowledge

management impacts CRM success.

There are some studies put organizational culture

as a moderating variable, such as Ying and Ahmad.

Their study put organizational culture (OC) as a

moderating variable between leadership behavior and

organizational commitment. Further, they also put

OC as a moderation between organizational

commitment and job satisfaction/job performance.

We also found a similar study conducted by Al-Tit

(2016). He put OC as a moderation between human

resources management and knowledge management.

The other study is conducted by Khorakian and

Lorestany (2016). They put OC as a moderating

variable between virtuousness in organization and

organizational effectiveness.

Even though there has not been found previous

research put organizational culture as a moderating

effect between knowledge management and CRM

success, this study proposed a hypothesis: H2:

organizational culture moderates the impact of

knowledge management on CRM success.

2 METHODS

In this study, the population and the samples are

Indonesian academicians and practitioners in

information systems. The questionnaires were

distributed using email and social media messenger to

more than 50 respondents, but only 34 respondents

fulfilled the questionnaires. From 34 questionnaires,

only 31 of them fulfilled completely.

Sixty one percent of them are practitioners, and

thirty-nine percent of them are academicians in the

area of information systems/technology. Most of the

respondents (81%) are having more than 4 years of

experiences, and the rest are the ones who have 4

years or below 4 years in experiences.

Seventy one percent of the respondents are males

and the rest are females.

Data were collected using a google form with the

link access of https://goo.gl/C3g2MZ. The link was

distributed using emails and a social media

messenger. The data will be analyzed using

quantitative inferential analysis. The analysis is based

on the measuring of the independent variables and

moderating variable impact on the dependent variable

processing. The data processing and analyzing are

conducted using SmartPLS (v 3.2.6).

3 RESULT AND DISCUSSIONS

The independent variable, i.e., knowledge

management is reliable in the category of acceptable

(it had composite reliability values of 0.60 to 070. The

moderating variable, (organizational culture) and the

dependent variable (CRM success) are considered as

satisfactory reliable since their value is between 0.70

and 0.90 (Hair Jr. et al. 2014).

Table 1: Coefficient of Reliability Test.

Variable

Cronbach's

Alpha

Composite

Reliability

Knowledge Management

0.693

0.829

Organizational Culture

0.781

0.839

CRM Success

0.860

0.842

Figure 1: Validity of Variables.

The first hypothesis is not accepted since the tstat

(0.193) are lower than 1,96 and P-values (0.317) are

above 0,05 (with the confidence level of 95%). So,

this finding is not in line with Garrido-Moreno,

Lockett, and Garcia-Morales (2011). Perhaps, this

research finding is a bit explaining why Allameh,

Shahin, and Tabanifar (2012) did not relate

knowledge management to CRM. But, on the other

side, it can be interpreted that some Indonesia

academicians and practitioners, in the field of

information systems, viewed knowledge

management (KM) and customer relationship

management (CRM) as two different kinds of systems

or applications that no need to be correlated.

The second hypothesis is also not accepted since

the tstat are (0.244) lower than 1,96, and P-values

(0.516) are upper 0,05 (with the confidence level of

95%). The result cannot be compared to some other

studies which putting organizational culture (OC) as

moderation, but up to now there has not been a study

100

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North

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put organization culture as a moderation between KM

and CRM success. This finding can be interpreted that

some Indonesian academicians and practitioners, in

the field of information systems, did not consider KM

and CRM as organizational systems, that is why the

OC is not really considered as a significant factor

influencing KM and CRM success. The overall result

of calculation is shown in table 2.

Table 2: Coefficient Path.

4 CONCLUSION

There is an interesting thing of the findings. The first

finding shows us that some Indonesian academicians

and some practitioners in the field of information still

did not consider knowledge management has a

relationship with customer relationship management

systems as Gebert et al. (2003) and mentioned,

especially knowledge about and of the customer.

The subsequent finding indicates that some

academicians and practitioners of Indonesia, in the

field of information systems, still do not realize that

the information system, in this case, represented by

knowledge management and customer relationship

management is an organizational system that can not

be separated from the influencing of organizational

culture.

ACKNOWLEDGMENT

We would like to thank to the all of the respondents,

the ones who distributed the link of the questionnaire,

Director and staff member of Center for Research and

Community Development IKPIA Perbanas; without

their support, this article would not have been

possible.

A special thanks to the reviewers and the

executive editors who let this article is becoming part

of their publication.

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Hypotheses

Original

Sample

(O)

Sample Mean

(M)

Standard

Deviation

(STDEV)

TStatistics (stat)

(|O/STDEV|)

P-Values

KMàCS

0.194

0.235

0.193

1.002

0.317

OCà(KMàCS)

-0.158

-0.138

0.244

0.650

0.516

Does Knowledge Management and Organizational Culture Still Out of Consideration in Achieving CRM Success? A Survey on Some

Indonesian Academicians and Practitioners

119

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