Do strong innovation capability and environmental turbulence influence the nexus between CRM and business performance?

Abstract This research has dealt with the gaps in the previous literature and the preponderant problems in the Ghana telecom industry. The main objective is to explore the roles of innovation capability and environmental turbulence on the relationship between customer relationship management and business performance in the Ghana telecommunication industry. Hierarchical linear regression and structural equation models through STATA and AMOS statistical software were employed to analyze the obtained data from a structured questionnaire. These models were used based on the type of analyses employed in our study and since they are robust in determining and validating the proposed causal relationships among variables. To summarize the findings, (1) the study found that customer relationship management constructs have a positive impact on innovation capability and business performance. (2) We discovered that innovation capability constructs have a positive effect on business performance. (3) Innovation capability mediates the relationship between customer relationship management and business performance. (4) Environmental turbulence moderates the relationship between customer relationship management and business performance. These findings contribute immensely to managerial and practical implications by entreating managers to intensify their commitment to CRM and innovation activities such as sharing indispensable information, involving customers, solving problems jointly, building long‐term relationships, and using modern technologies in building powerful partnerships with customers to meet their needs in order to accelerate performance.

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