The Influence of Customer Relationship Management Practices on the Organization Performance of Hotels in Malaysia: The Mediating Role of Market Orientation

Abstract

In the digital era, Customer Relationship Management (CRM) has emerged as a vital tool for effective marketing, particularly in the hospitality industry. This study explores the impact of CRM on the organizational performance of hotels in Malaysia, the concerning independent factors are infrastructural, technological CRM resources, key customer focus, relationship marketing, and knowledge management. Drawing on the Resource-Based View (RBV) theory, this study examines how these CRM practices influence market orientation, which in turn affects organizational performance. A quantitative methodology was employed, with data collected through a self-administered survey questionnaire from a sample of 282 manageriallevel participants. The findings reveal a strong positive mediating effect of market orientation on CRM practices and organizational performance. Additionally, infrastructural CRM resources were found to be positively associated with market orientation. These findings offer valuable insights for hospitality organizations, emphasizing the significance of successful CRM implementation in driving organizational performance.