Customer Engagement and Customer Relationship Management Capabilities' Effects on Innovation Performance and Customer Distrust's Moderating Role

Abstract

This research aims to investigate how customer relationship management capabilities (CRMCs) improve customer engagement and innovation performance. Customer engagement is also tested as a mediator between CRM capabilities and innovation performance. Furthermore, the distrust moderating role was studied towards the relationship between CRMCs and customer engagement. Data were collected from 491 owner/managers of SMEs working in Saudi Arabia. The findings revealed that CRMCs positively predict customer engagement and innovation performance. Customer engagement directly affects innovation performance and acts as a mediator as well. In addition, the findings proved that distrust moderates on the link between CRMCs and customer engagement. This research adds to the marketing management theory and practices and highlighted the role of CRMCs in achieving innovation performance. It explored, considering the data base collected from SME owners and managers, the mechanism of innovation performance achievement through CRMCs and customer engagement. CRMC improvements allow businesses to have sustainable development and a better integration in the market.