Mediating effect of Innovation Capacities on the relationship between Customer Relationship Management Parameters and SMEs performance: Evidence from Nigeria.

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Felicia Abiodun Oyewole, Ademola Samuel Sajuyigbe, Olatunji Fadeyi, 1Fred Ojochide Peter,Olubayo Mathew Omotoso, Atinuke Bukola Aremu, Jane Ogochukwu Ben-Caleb, Rahman Adeniran Tella

Abstract

Introduction: SMEs play a pivotal role in driving innovation, growth, and competitiveness. However, many face challenges with insufficient digital infrastructure, hindering their ability to adopt online CRM systems in Nigeria.


Objectives: This study explored the direct and indirect effects of customer relationship management (CRM) parameters on the performance of small and medium-sized enterprises (SMEs) through innovation capacities.


Methods: Using purposive and convenience sampling techniques, 452 respondents were selected for the study. Data analysis was conducted with Path Analysis Structural Modelling (PA-SEM) using STATA version 15.


Results: The findings reveal that customer acquisition, customer interaction management, and customer service and support significantly and positively impact SME performance, demonstrating that effective strategies in these areas are key contributors to business success. The study also emphasized that innovation capacities (INC) have a strong, positive, and significant direct impact on both CRM strategies and SME performance, highlighting the critical importance of prioritizing innovation within SMEs. Additionally, the data showed that innovation capacities partially mediate the relationship between CRM parameters and SME performance.


Conclusions: The study provides compelling evidence that effective CRM practices, coupled with a strong focus on innovation, are essential for SMEs seeking superior performance. By investing in customer acquisition, interaction management, service and support, and innovation, SMEs can build robust customer relationships, enhance satisfaction, and ultimately drive business growth.

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