Discussion of The Effect of Customer Relationship Management Systems on Firm Performance by Joung W. Kim Nova Southeastern Univerity.

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Discussion of The Effect of Customer Relationship Management Systems on Firm Performance by Joung W. Kim Nova Southeastern Univerity

Motivation and Contribution  CRM and Business Process Measures  Is CRM beneficial? Good to ask again…  However, is it a timely question? Table 1 shows a decreasing trend of CRM implementation  Why is the association between CRM implementation and the process measures important? CRM is expected to increase customer satisfaction. Are these measures more strongly related to customer satisfaction than the measures used in the prior studies?

Hypotheses  Prior studies on CRM  Mithas et al. (2005)  Hendricks et al. (2007)  Is customer satisfaction related to the measures? How?  Accounting literature?  Ittner and Larker (1998 JAR): the relations between customer satisfaction and accounting measures are positive but nonlinear (diminishing performance benefits at high satisfaction levels)  Earnings forecast? Why do you need it here…

Research Design  Difference in Difference is a good way to examine before and after  Matching based on industry and ROA? Size, market to book, firm age..  How to measure the forecast error? How about range forecasts or qualitative forecasts?