The influence of knowledge creation process on customer relations management: evidence from Palestinian commercial banks

Abstract

PurposeThe purpose of this study is to examine the influence of knowledge creation (KC) process on customer relations management (CRM) in Palestinian commercial banks, taking into consideration which factors of KC process support the CRM system.Design/methodology/approachThe study uses a quantitative research design wherein questionnaires have been used to collect data from 345 respondents in the Palestinian banking sector. Research hypotheses have been tested using multiple regression analysis.FindingsThe findings unveil that socialisation and combination processes have a positive impact on CRM. In contrast, internalisation process negatively affects CRM system, but outsourcing knowledge does not significantly affect CRM.Research limitations/implicationsPast studies empirically validated the success of CRM adaptation in the context of different industries. This study provides a new conceptual model which validates the influence of KC on CRM in the banking sector. It also affirms the integral role of KC in supporting CRM from an emerging country perspective like Palestine.Practical implicationsThis study offers new insights into creating of knowledge by employees in supporting CRM. It will encourage future scholars to further explore the key dimensions of the KC process for a more detailed investigation at a workplace. This study suggests that banks’ directors and employees should behave in a social manner to support relationship with customers. This study also suggests facilitating knowledge from different resources in innovative ways, through encouraging creative thinking from experiences, using technology in sharing knowledge, focussing on appropriate training to resolve customers' problems and disseminating new knowledge among employees.Originality/valueThis study expands the body of knowledge on KC process in supporting CRM from an emerging country perspective. This study validates the influence of KC on CRM in the Palestinian banking sector. This sheds light on the integration of these two concepts.