PurposeTo develop a reliable and valid measuring scale for customer relationship management (CRM).Design/methodology/approachA series of studies were conducted for the development and validation of multiple measures for the dimensions of CRM. Once the dimensions of CRM were identified, data from study 1 (n=150 business executives attending a part‐time MBA program) were used to select items based on factor analysis. Then, confirmatory factor analyses was used on data obtained from a mail survey of Hong Kong financial firms in study 2 (n=215) to examine factor structure, as well as to provide evidence of dimensionality, scale reliability and validity. Finally, in study 3, data from 276 business executives attending a seminar on CRM were used to test the scale generalizability of CRM measures in various industries.FindingsA reliable and valid scale was developed to measure the four dimensions of CRM: key customer focus, CRM organization, knowledge management and technology‐based CRM.Research limitations/implicationsSince this study was conducted in Hong Kong only, the generalizability of the CRM scale has to be tested in other countries. In addition, cross‐sectional data were used in this study. Future studies should collect time‐series data for the testing of the causal relationship between CRM and business performance.Practical implicationsThe findings validate the long‐held belief that CRM is a critical success factor for business performance. Firms wishing to improve their relationships with customers need constantly to monitor their behavioral and internal processes. The proposed scale in this study could be used as a diagnostic tool to identity areas where specific improvements are needed, and to pinpoint aspects of the firm's CRM that require work.Originality/valueThis is the first study to provide a comprehensive, psychometrically sound, and operationally valid measure of a firm's CRM.

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This paper examines how social capital and organizational innovativeness influence business performance through their separate, indirect, or interactive effects, and how these effects differ across the institutional contexts of a transition economy and a market economy. In line with institutional theory, our findings show that the effects of social capital are more extensive and probably more malignant in a transition economy than in a market economy. Furthermore, different types of organizational innovativeness, as corporate culture, can be cultivated by different forms of social capital in different institutional contexts. The implications for institutional theory and social capital theory, and the managerial implications, are discussed. Journal of International Business Studies (2008) 39, 589–612. doi:10.1057/palgrave.jibs.8400373

Although a large body of research theoretically asserts a positive association between relationship marketing orientation (RMO) and business performance, a valid measure of RMO has not yet been proposed and systematic analysis of its effect on business performance has thus far not been possible. This paper addresses some conceptual and measurement issues related to the study of RMO and its impact on business performance in a service context. It first reviews the concept of RMO and its important dimensions. Next, a measurement scale with acceptable reliability and validity is developed to capture the dimensions of RMO. In turn, analysis of data shows that RMO is positively and significantly associated with sales growth, customer retention, market share, ROI, and overall performance. The implications of these findings are discussed and the limitations of the study as well as future research directions are addressed.

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