THE EFFCT OF CUSTOMER RELATIONSHIP MANAGEMENT AND

ORGANIZATIONAL PERFOMANCE

By:

ABDIRISAK SAHAL HERSI

REG. No: BCOM/06269/2O18

A RESEARCH PROPOSAL SUBMITTED TO THE FACULTY OF

COMMERCE AND MODERN MANAGEMENT DEPATMENT OF
ACCOUNTING FOR THE FULFILMENT OF THE REQUIREMENT FOR
THE AWARD OF BACHELOR DEGREE OF ARTS IN ACCOUNTING OF
THE UNIVERSITY OF BOSA

April, 2021
 DECLARATION

I declare that this senior project entitled "Customer Relationship Management and Organizational Performance “is the
result of my own research except as cited in the references. The senior project has not been accepted for any degree
and is not concurrently submitted in candidature of any other degree.

Signature: _________________________________

Date: ____________________________________

I
 APPROVAL

This research proposal is submitted in partial fulfillment of the requirement for the B. degree of Accounting, in faculty
of Commerce and modern mgt.

Supervisor

Mr. Hassan Mohamed Ali

Signature: ______________________________

Date: ___________________________________

II
 DEDICATION

I dedicate this senior project to my uncle Farah Hassan Osman with much love, for any effort and sacrifice he provided
throughout my academic life and career development. I also dedicated to my respected brothers for being supportive
to spiritually, emotionally and morally such as: Mohamed Adan Jama and Yusuf Sahal.

III
 ACKNOWLEDGEMENT

Fist “Praise be to Allah!” of all I am giving the ultimate thanks to The Almighty Allah who allowed me to complete
this thesis. This great work won’t become reality unless the material and moral support of great ones. My special thanks
to my parents for granting me the opportunity to be part of this programmed and for bringing me to a successful end.
I would like to thank my dear supervisor, Mr. Hassan Mohamed Ali for his professional guidance, follow up and
great support, useful comments, remarks and engagement through the learning process of this thesis.
Moreover I would like to thank Mr. Ahmed Husain Suleiman who is my research methodology course lecturer
and eventual will be the source of support during hard days in my research.

I would like to thank the staff of the Bosaso for the materials that gave me more insight into this research.

Lastly, but most importantly, I would like to thank my friend (Mohamed) and sister (Hothan) for their support and
prayers that sustained me throughout this studies.

IV
Contents

DECLARATION .............................................................................................................................................................. I

APPROVAL ................................................................................................................................................................... II

DEDICATION ............................................................................................................................................................... III

ACKNOWLEDGEMENT ............................................................................................................................................. IV

LIST OF TABLES ...................................................................................................................................................... VIII

CHAPTER ONE: INTRODUCTION .............................................................................................................................. 1

1.0 Introduction............................................................................................................................................................ 1

1.1 Background study .................................................................................................................................................. 1

1.2 Problem of the statement ....................................................................................................................................... 5

1.3 Purpose of the Study .............................................................................................................................................. 6

1.4 Objectives of the study .......................................................................................................................................... 6

1.5 Question of the study ............................................................................................................................................. 6

1.6 Research Hypotheses ............................................................................................................................................. 6

1.7 Scope of the study .................................................................................................................................................. 6

1.7.1 Geographical Area ........................................................................................................................................ 6

1.7.2 Content scope ................................................................................................................................................ 6

1.7.3 Theoretical scope .......................................................................................................................................... 6

1.7.4 Time scope ..................................................................................................................................................... 6

1.8 Significance of the study ....................................................................................................................................... 7

1.9 operational Definitions .......................................................................................................................................... 7

CHAPTER TWO:LITERATURE REVIEW ................................................................................................................... 8

2.0 Introduction............................................................................................................................................................ 8

2.1 Theoretical Framework .......................................................................................................................................... 8

2.2 Conceptual framework......................................................................................................................................... 15

V
 2.2.1 Customer relationship management (IV) ...................................................................................................... 15

2.3 Empirical review .................................................................................................................................................. 27

2.4 Research gap ........................................................................................................................................................ 29

CHAPTR THREE: RESEARCH METHODOLOGY................................................................................................... 30

3.0 Introduction.......................................................................................................................................................... 30

3.1 Research design ................................................................................................................................................... 30

3.2 Research population............................................................................................................................................. 30

3.3 Sample Size ......................................................................................................................................................... 30

3.4 Sampling Procedure ............................................................................................................................................. 31

3.5 Research Instrument ............................................................................................................................................ 31

3.6 Validity and reliability of the instrument ............................................................................................................. 31

3.7 Data collection procedures .................................................................................................................................. 32

3.8 Data analysis ........................................................................................................................................................ 32

3.9 Ethical consideration ........................................................................................................................................... 32

3.10 Limitation of the study....................................................................................................................................... 33

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATIONS ......................................... 34

4.0 Introductions ........................................................................................................................................................ 34

4.1 The profile of the respondents. ............................................................................................................................ 34

4.2 Data presentation, analaysis and interpretation of result ..................................................................................... 39

CHAPTER FIVE :5 FINDINGS, CONCLUSION AND RECOMMENDATIONS .................................................... 54

5.0 INTRODUCTION ................................................................................................................................................... 54

5.1 MAJOR FINDINGS OF THE STUDY ............................................................................................................... 54

5.2 CONCLUSION.................................................................................................................................................... 56

5.3 RECOMMENDATION ....................................................................................................................................... 57

REFERENCES .............................................................................................................................................................. 58

VI
APPENDIXES ........................................................................................................................................... I

APPENDIX I: TRANSMITTAL LETTER ........................................................................ I

APPENDIX II: TIME FRAME ........................................................................................ II

APPENDIX III: BUDGET ............................................................................................. III

APPENDIX IV: QUESTIONNAIRE .............................................................................. IV

VII
LIST OF TABLE

Table 4.1.1…………………………………………….…… ……………… 35

Table 4.1.2… .......................................................................................................... 36

Table 4.1.3… ........................................................................................................... 37

Table 4.1.4… ........................................................................................................... 38

Table 4.1.5… ........................................................................................................... 39

Table 4.2.1… ........................................................................................................... 40

Table 4.2.2… ........................................................................................................... 41

Table 4.2.3… ........................................................................................................... 42

Table 4.2.4… ........................................................................................................... 43

Table 4.2.5… ........................................................................................................... 44

Table 4.2.6… ........................................................................................................... 45

Table 4.2.7… ........................................................................................................... 46

Table 4.2.8… ........................................................................................................... 47

Table 4.2.9… ........................................................................................................... 48

Table 4.2.10… ......................................................................................................... 49

Table 4.2.11… ......................................................................................................... 50

Table 4.2.12… ........................................................................................................... 51

Table 4.2.13… ........................................................................................................... 52

Table 4.2.14… ........................................................................................................... 53

Table 4.2.15…………………………………………………………………………54

VIII
LIST OF FIGURES

Figure 4.1.1………………………………………………………………………..35

Figure 4.1.2………………………………………………………………………...36

Figure 4.1.3… ........................................................................................................... 37

Figure 4.1.4… ........................................................................................................... 38

Figure 4.1.5… ........................................................................................................... 39

Figure 4.2.1… ........................................................................................................... 40

Figure 4.2.2… .......................................................................................................... 41

Figure 4.2.3… ........................................................................................................... 42

Figure 4.2.4… ........................................................................................................... 43

Figure 4.2.5… ........................................................................................................... 44

Figure 4.2.6… ........................................................................................................... 45

Figure 4.2.7… ........................................................................................................... 46

Figure 4.2.8… ........................................................................................................... 47

Figure 4.2.9… ........................................................................................................... 48

Figure 4.2.10… ......................................................................................................... 49

Figure 4.2.11… ......................................................................................................... 50

Figure 4.2.12… ........................................................................................................... 51

Figure 4.2.13… ........................................................................................................... 52

Figure 4.2.14… ........................................................................................................... 53

Figure 4.2.15… ........................................................................................................... 54

IX
 ABSTRACT
Customer relationship management (CRM) an approach to managing a company's interaction with
current and potential future customers. The CRM approach tries to analyses data about customers'
history with a company, to improve business relationships with customers, specifically focusing
on customer retention, and ultimately to drive sales growth. The problem of this study The
difficulty in building customer relationship has created low confidence and trust in the insurance
market today. The complexity and peculiarity of customer relations management as well as the
nature of the product remains a major barrier to the provision of satisfactory services to consumers
of organizational performance Luck of skill employee, Poor service, and Poor quality.
The purpose of this study was to investigate will the effect of customer Relationship management
and organizational performance in Bosaso Somalia.

Objectives of the study to investigate the role of customer orientation on organizational

performance. to investigate the effect of knowledge management on organizational performance.to
establish the relationship between customer relationship management and organizational
performance in Bosaso Puntland Somalia.Theoretical scope This study will guide by approach (is
the systems of CRM that compile information from a range of different communication channels,
including a company's website, telephone, email, live chat, marketing materials, social media, and
more) proposed by(David Sims, 2007). Time scope this will be conduct between 2020/2021.

Significance of the study the outcome of this study would be beneficial for business owners. It will
also give secondary data to researchers and larger population in Somalia, who may be interested
in the topic as the work was be made available in the library of University of Somalia.

Research gap the effect of Customer Relationship Management and organizational performance
has not received yet adequate research in Somalia. Therefore, this study will attempt to fill this gap
by investigating the effect of Customer Relationship Management and organizational performance
in Bosaso Puntland Somalia, I recommend to make Garowe, Badhan in Puntland Somalia.

If there was a good relationship the productivity of the organization and managers they will
increase the performance of organization and customer satisfaction

X
 CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter comprises the introductory sections of the study and these include; background to
the study, problem statement, research objectives and questions, the scope and significance of
the study, the perspective and operational definitions of key terms.

1.1 Background study

Customer relationship management (CRM) defined as approach to managing a company's
interaction with current and potential future customers. The CRM approach tries to analyses data
about customers' history with a company, to improve business relationships with customers,
specifically focusing on customer retention, and ultimately to drive sales growth (Shaw, Robert,
1991).
One important aspect of the CRM approach was the systems of CRM that compile information
from a range of different communication channels, including a company's website, telephone,
email, live chat, marketing materials, social media, and more (David Sims, 2007) Through the
CRM approach and the systems used to facilitate CRM, businesses learn more about their target
audiences and how to best cater to their needs. However, adopting the CRM approach may also
occasionally lead to favoritism within an audience of consumers, resulting in dissatisfaction among
customers and defeating the purpose of CRM (Bolton, Ruth N.1998).
In the Gartner CRM Summit 2010 challenges like "system tries to capture data from social
networking traffic like Twitter, handles Facebook page addresses or other online social networking
sites" were discussed and solutions were provided that would help in bringing more
clientele(Bolton, Ruth N. 1998)Many CRM vendors offer subscription-based web tools (cloud
computing) and Saas. Some CRM systems are equipped with mobile capabilities, making
information accessible to remote sales staff Fornell, Claes (1992) Salesforce.com was the first
company to provide enterprise applications through a web browser, and has maintained its
leadership position (Mithas, Sunil.; Krishnan, M.S. &Fornell, Claes, 2005) Salesforce continues
to be a market leader as the CRM with the most customers and was rated-highly among their
customers (Piccoli, Gabriele and L. Applegate, 2003).
Although the concept of organizational performance is very common in the academic literature,
its definition was difficult because of its many meanings. For this reason, there isn’t a universally
1
accepted definition of this concept. In the '50s organizational performance was defined as the
extent to which organizations, viewed as a social system fulfilled their objectives (Georgopoulos
&Tannenbaum, 1957). Performance evaluation during this time was focused on work, people and
organizational structure. Later in the 60s and 70s, organizations have begun to explore new ways
to evaluate their performance so performance was defined as an organization's ability to exploit its
environment for accessing and using the limited resources (Yuchtman& Seashore, 1967). The
years 80s and 90s were marked by the realization that the identification of organizational
objectives was more complex than initially considered. Managers began to understand that an
organization was successful if it accomplishes its goals (effectiveness) using a minimum of
resources (efficiency). Thus, organizational theories that followed supported the idea of an
organization that achieves its performance objectives based on the constraints imposed by the
limited resources (Lusthaus &Adrien, 1998 after Campbell, 1970). In this context, profit became
one of the many indicators of performance.
Traditional providers have recently moved into the cloud-based market via acquisitions of smaller
providers: Oracle purchased Right Now in October 2011 (Piccoli, Gabriele and L. Applegate,
2004) and SAP acquired Success Factors in December 2011(Pulp & Paper 2003). The era of the
"social customer(Richards, A. Keith, and E. Jones, 2008)refers to the use of social media (Twitter,
Facebook, LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews in Amazon, etc.)
by customers. CRM philosophy and strategy has shifted to encompass social networks and user
communities.
Sales forces also play an important role in CRM, as maximizing sales effectiveness and increasing
sales productivity was a driving force behind the adoption of CRM. Empowering sales managers
was listed as one of the top 5 CRM trends in 2013(Mohammad Hussein, N., & Zakaria, N. H,
2012). Another related development was vendor relationship management (VRM), which provide
tools and services that allow customers to manage their individual relationship with vendors. VRM
development has grown out of efforts by Project VRM at Harvard's Berkman Center for Internet
& Society and Identity Commons' Internet Identity Workshops, as well as by a growing number
of startups and established companies. VRM was the subject of a cover story in the May 2010
issue of CRM Magazine (Bolte, T. Still Struggling, 2007).

2
In 2001, Doug Laney from Gartner developed the concept and coined the term 'Extended
Relationship Management' (XRM) (Silverman, L.L., 2000.)Laney defines XRM as extending
CRM disciplines to secondary allies such as the government, press and industry consortia.
Dennison De Gregor (2011) describes a shift from 'push CRM' toward a 'customer transparency'
(CT) model, due to the increased proliferation of channels, devices, and social media (Collica, R.S,
2007) Another trend worth noting was the rise of Customer Success as a discipline within
companies. More and more companies establish Customer Success teams as separate from the
traditional Sales team and ask them with managing existing customer relations. This trend fuels
demand for additional capabilities for more holistic understanding of the customer health, which
was a limitation for many existing vendors in the space(Adrian Payne , P.F., 2005) As a result, a
growing number of new entrants enter the market, while existing vendors add capabilities in this
area to their suites.
According to a Sweeney Group definition, CRM was "all the tools, technologies and procedures
to manage, improve, or facilitate sales, support and related interactions with customers, prospects,
and business partners throughout the enterpris (Prasongsukarn, Kriengsin,2006)The quote assumes
that CRM is involved in every Business-to-Business (B2B) transaction(Harris, J.G., Kohli, A.K.
2001).
Despite the general notion that CRM systems were created for the customer-centric businesses,
they can also be applied to B2B environments to streamline and improve customer management
conditions. For the best level of CRM operation in a B2B environment, the software must be
personalized and delivered at individual levels(Yun E. Zeng, H. Joseph Wen, David C. Yen,2003)
The main differences between business-to-consumer (B2C) and business-to-business CRM
systems concern aspects like sizing of contact databases and length of relationships (DeGregor,
Dennison,2011) Business-to-business companies tend to have smaller contact databases than
business-to-consumer, the volume of sales in business-to-business was relatively small. There are
fewer figure propositions in business-to-business, but in some cases, they cost a lot more than
business-to-consumer items and relationships in business-to-business environment are built over
a longer period of time.
Furthermore, business-to-business CRM must be easily integrated with products from other
companies. Such integration enables the creation of forecasts about customer behavior based on
their buying history, bills, business success, etc. An application for a business-to-business

3
company must have a function to connect all the contacts, processes and deals among the
customers segment and then prepare a paper.
Automation of sales process was an important requirement for business-to-business products. It
should effectively manage the deal and progress it through all the phases towards signing. Finally,
a crucial point was personalization. It helps the business-to-business company to create and
maintain strong and long-lasting relationship with the customer (Hassan, M. R., Rahman, M., And
Khan, M. M, 2013)
An example was with Costco Wholesale Corporation using Free CRM to track its business-to-
business partnerships and programs. The firm was able to track all data and negotiate with affiliate
partners to track the relationship from beginning to end. It also helps the firm track special
programs with participating organizations and give special discounts and deals (Nirpaz G., Pizarro
F, 2016).

In globally, In the current literature on CRM usage, scholars have provided a multitude of
definitions for CRM systems. Most definitions focus on the technology portion of CRM,
specifically the information system that house the data (Vella &Caruana, 2012). A full description
of CRM should include the people and process that are part of any detailed implementation (Ernst,
Hoyer, Krafft, & Krieger, 2011). Using a blend of definitions from other research, Vella and
Caruana (2012) defined CRM as the integration of people, systems, and processes to achieve
customer satisfaction throughout the product life cycle.
The failure of many companies to adopt this more holistic view of CRM may be a key reason that
so many CRM implementations have failed to meet expectations (Maklan, Knox, & Peppard,
2011). An accurate definition alone was not enough to ensure the success of any system.

In African context, According to Kotler (1997) good customer service was an important aspect
of whole business process. It was also creates customer satisfaction, loyalty, high profitability and
eventually increases organizational growth. Thus, good customer service is the primary reason that
customers differentiate company from its competitors. So, it was clearer to state that business
success was due to the good customer service, in other words if the customer service of any
organization increase, the growth of the organization increase in terms of sales growth, profit,
brand equity and employees growth.

4
In Somalia, understanding customer service was realized the most important one in
organizational growth. Obviously, electronic computer enterprise confirmed the significant of
customer service in organizational success that was why many privately owned companies
established.
In this study, the need of some computer-based service including, repairing installing, speed
delivery, and guarantee service are key to both of company existence and customer satisfaction.
Although there are several studies which that touches the role of customer service and business
market and some time with Organizational growth. Yet much on them did not bother to analysis
and study the impact of customer service and Organizational growth which is different subject
matter. (Philip Kotler, 1997).
In Puntland understanding customer service was realized the most important one in
organizational growth. So, it was clearer to state that business success was due to the good
customer service ( Upgrading and Rehabilitation of Customs Facilities, Developing Customs
Intelligence and Enforcement Capacity, and Monitoring and Evaluation)

1.2 Problem of the statement

The difficulty in building customer relationship has created low confidence and trust in the
insurance market today. The complexity and peculiarity of customer relations management as well
as the nature of the product remains a major barrier to the provision of satisfactory services to
consumers of organizational performance Luck of skill employee, Poor service, and Poor quality
Luck of skill employee, by ignoring this responsibility can could face legal repercussion, an
increase in workplace accidents and decreased staff morale and increased absence inadequate
trained employees, are likely to experience Couse poor job performance.
Poor service a number of factors which include breakdown of company or other organization
Poor service have negative impact on customers such as product and service can cause business
lose, and creates a negative impact on your business no matter how established
Poor quality can Couse leads to decline in the customer base that is dependent on you and this was
loss to y our company and can easily will be distributed by the entire company or by bud luck
Poor quality product and service have a negative impact on customer such product and service can
Couse business lose

5
1.3 Purpose of the Study
The purpose of this study was to investigate will the effect of customer Relationship management
and organizational performance in Bosaso Somalia.
1.4 Objectives of the study
• To investigate the role of customer orientation on organizational performance
• To investigate the effect of knowledge management on organizational performance
• To establish the relationship between customer relationship management and
organizational performance in Bosaso Puntland Somalia
1.5 Question of the study
• What was the role of customer orientation on organizational performance?
• What was the importance of knowledge management on organizational performance?
• Is there significant relationship between customer relationship management and
organizational performance?
1.6 Research Hypotheses
H1: There was direct Relationship between customer relationship management and
organizational performance
1.7 Scope of the study
To investigate the effect of customer relationship management and organizational
Performance
1.7.1 Geographical Area
This research was be conduct in Bosaso
Bosaso was a city in the northeastern Bari providence of Somalia located on the southern
coast of the Gulf Aden
1.7.2 Content scope
This study will describe customer relationship management and organization performance.
1.7.3 Theoretical scope
This study will guide by approach (was the systems of CRM that compile information from a
range of different communication channels, including a company's website, telephone, email, live
chat, marketing materials, social media, and more) proposed by(David Sims, 2007).
1.7.4 Time scope
This will be conduct between 2020/2021

6
1.8 Significance of the study
The outcome of this study would be beneficial for business owners. It will also give secondary
data to researchers and larger population in Somalia, who may be interested in the topic as the
work was be made available in the library of University of Somalia (UNISO).
Government Research very important because it help government to analyze and allocated of
national resource and analyze economic structure
Private company Research help choose the type of business that are wants and prevent the risk
of company illness
Employee it’s important for employees to help them find the workplace or job they want
It can also help to find the salary is enough
Researchers’ main purpose of researchers was to inform action, to prove a theory and
contribute to developing a knowledge in a field or study
A tool f or building knowledge and for facilitating learning
Academic institution was significant for its sustainability and development and it is imperative
to have knowledge driven growth based on innovations, also it help to understand various issues
and increasing public Awareness
1.9 operational Definitions

• Customer relationship management (PCRM) a term that refers to practices, strategies

and technologies that companies use to manage and analyze customer interactions and data
throughout the customer lifecycle, with the goal of improving business relationships with
customers, assisting in customer retention and driving sales growth. CRM systems are
designed to compile information on customers across different channels -- or points of
contact between the customer and the company -- which could include the company's
website, telephone, live chat, direct mail, marketing materials and social media. CRM
systems can also give customer-facing staff detailed information on customers' personal
information, purchase history, buying preferences and concerns.
• Organizational performance an organization's performance, it was necessary to be able
to quantify the results, social fulfilment, objectives, and goal setting. It comprises the actual
output of organizational performance
• Performance the concept of performance was necessary to know its elements
characteristic to each area of responsibility.
7
 CHAPTER TWO:
LITERATURE REVIEW
2.0 Introduction
This chapter discusses and reviews similar or related researches and literature published by other
authors’ articles, books, journals, reports and previous dissertations related to the topic in question
and its variables in order to give an insight into the study as well as expressing the need for this
study.

2.1 Theoretical Framework

Customer relationship management was everything in business, because it was the catalyst for a
responsible, profitable and customer focused organization” (Wali, Wright &Uduma, 2015).This
study aims to investigate the relationship between customer relationship management, customer
commitment and loyalty on customer advocacy intentions. The need for firms to strengthen their
business relationship with customers is perceived as strategic step for business growth and
competitiveness.

Customer relationship management behavior theory was comprehensively aimed at examining and
strengthening business relationship between the customer and the service suppliers. It holds that
the degree of firms attain is directly proportional to the relationship it shares with its customers.
Drawing from an individualized purchase and consumption experiences, it was normal to believe
that a customer would repeat purchase with a supplier who they believe was courteous and friendly.
Moreover, the way and manner firms relate with their customers can either arouse a positive or
negative customer intrinsic feeling of commitment and loyalty. Several studies has experimented
the impact of CRM in achieving business objectives. This study was structured to unearth the
extent to which Nigerian Banks’ CRM strategies influences their customers committed and loyalty
behavior’s. Thus, this study draws upon the customer relationship management behavior theory
and buyer behavior theory (Labus& Stone, 2010). CRM which was the predictor variable was
measured in terms of process (Thompson, 2000; Berkowitz et al. 1997). Whist brand commitment
and loyalty were measured using affective and continuance commitment (Debling,
1999).Customer relationship management was seen as a process, because the business relationship
between firms and their customers takes the process of prospecting, offering, acceptance, purchase
and consumption (Bain, 2013; Iriana&Buttle, 2006; Payne &Frow, 2005; Piccoli et al. 2003; Sin,
Tse&Yim, 2005; Parvitiyar&Sheth, 2001; Schoder&Madeja, 2004). Thompson (2000) had argued
8
that CRM was a process through which the customers interact with the firm through marketing,
services and sales. More so, the marketing process deals with the traditional marketing P’s
(product, price, place and promotion). This P’s passes the process of interaction with firm’s go-
between and its customers.
According to Berkowitz et al. (1997) argued that managing business and customer relationship
takes a process of understanding customer needs; understanding their purchase habits and possibly
where they reside as to create place utility. Additionally, the sales process involves a relationship
between sales persons and customers which is very crucial evaluating CRM outputs. This was
because the salespersons through a process of customer interface present the firms’ offerings. In
order to establish an initial partnership or relationship with the clients, thereafter, a follow up
process was initiated on such clients. Service processing driving customer relationship
management objectives was crucial to the success of the firm and customers.

This was because customers regularly evaluate the quality of services provided by the firms. Based
on their consumption experiences; interaction with firm’s employees on the telephone or face to
face regarding enquiries or complaints. This was therefore an indication that customers place high
premium on firm’s service delivery process. Customer Relationship Management (CRM) was the
latest relational concept to receive “top billing” (Egan, 2001; Gronroos, 1996). With customer-
centric philosophy (Sheth et al. 2000), CRM is associated with the use of technologies in managing
relationships (Rigby et al. 2002; Ryals, 2000).

Companies use newly technologies to assist them in dealing with customers. However, many
statistics show that more than half of all CRM initiatives fail to produce the anticipated results or
bring companies to negative trend. The major question raised for consideration was that some
companies put too much concentration to boost the development of CRM with the advanced
computer systems or software. Some researchers would even adhere to use technical solutions in
solving relational questions. Crosby (2003) points out that the CRM implementation is only about
“customer relationships” in name and aims at reducing costs and putting more responsibility on
the customer for self-service. Indeed, technical solutions were not the ways to settle customers’
problems but they were just covering them. Kotler and Armstrong (2003) indicate that CRM has
been defined narrowly as a customer database management activity but the term has a broader
meaning. It should be related to the overall process of building and maintaining profitable customer
9
relationships by delivering superior customer value (Kennedy et al. 2001; Slater &Narver, 2000).
Hence, relational approach should be the key focus in the whole process, not technologies, and the
goal of the approaches was to derive valuable information in optimizing customer relationships.

Customer relationship management (CRM) was an approach to managing a company's interaction

with current and potential future customers. The CRM approach tries to analyses data about
customers' history with a company, to improve business relationships with customers, specifically
focusing on customer retention, and ultimately to drive sales growth (Shaw, Robert, 1991).
One important aspect of the CRM approach was the systems of CRM that compile information
from a range of different communication channels, including a company's website, telephone,
email, live chat, marketing materials, social media, and more (David Sims, 2007) Through the
CRM approach and the systems used to facilitate CRM, businesses learn more about their target
audiences and how to best cater to their needs. However, adopting the CRM approach may also
occasionally lead to favoritism within an audience of consumers, resulting in dissatisfaction among
customers and defeating the purpose of CRM (Bolton, Ruth N.1998)
In the Gartner CRM Summit 2010 challenges like "system tries to capture data from social
networking traffic like Twitter, handles Facebook page addresses or other online social networking
sites" were discussed and solutions were provided that would help in bringing more
clientele(Bolton, Ruth N. 1998)Many CRM vendors offer subscription-based web tools (cloud
computing) and SaaS.

Some CRM systems were equipped with mobile capabilities, making information accessible to
remote sales staff Fornell, Claes (1992) Salesforce.com was the first company to provide enterprise
applications through a web browser, and has maintained its leadership position (Mithas, Sunil.;
Krishnan, M.S. &Fornell, Claes, 2005) Salesforce continues to be a market leader as the CRM
with the most customers [71] and is rated-highly among their customers (Piccoli, Gabriele and L.
Applegate, 2003).
Although the concept of organizational performance is very common in the academic literature,
its definition was difficult because of its many meanings. For this reason, there isn’t a universally
accepted definition of this concept. In the '50s organizational performance was defined as the
extent to which organizations, viewed as a social system fulfilled their objectives
(Georgopoulos&Tannenbaum, 1957). Performance evaluation during this time was focused on
10
work, people and organizational structure. Later in the 60s and 70s, organizations have begun to
explore new ways to evaluate their performance so performance was defined as an organization's
ability to exploit its environment for accessing and using the limited resources (Yuchtman&
Seashore, 1967). The years 80s and 90s were marked by the realization that the identification of
organizational objectives is more complex than initially considered. Managers began to understand
that an organization was successful if it accomplishes its goals (effectiveness) using a minimum
of resources (efficiency). Thus, organizational theories that followed supported the idea of an
organization that achieves its performance objectives based on the constraints imposed by the
limited resources (Lusthaus&Adrien, 1998 after Campbell, 1970). In this context, profit became
one of the many indicators of performance.

Traditional providers have recently moved into the cloud-based market via acquisitions of smaller
providers: Oracle purchased Right Now in October 2011 (Piccoli, Gabriele and L. Applegate,
2004) and SAP acquired Success Factors in December 2011(Pulp & Paper 2003). The era of the
"social customer(Richards, A. Keith, and E. Jones, 2008)refers to the use of social media (Twitter,
Facebook, LinkedIn, Google Plus, Pinterest, Instagram, Yelp, customer reviews in Amazon, etc.)
by customers. CRM philosophy and strategy has shifted to encompass social networks and user
communities.

Sales forces also play an important role in CRM, as maximizing sales effectiveness and increasing
sales productivity was a driving force behind the adoption of CRM. Empowering sales managers
was listed as one of the top 5 CRM trends in 2013(Mohammadhossein, N., &Zakaria, N. H, 2012).
Another related development was vendor relationship management (VRM), which provide tools
and services that allow customers to manage their individual relationship with vendors. VRM
development has grown out of efforts by Project VRM at Harvard's Berkman Center for Internet
& Society and Identity Commons' Internet Identity Workshops, as well as by a growing number
of startups and established companies. VRM was the subject of a cover story in the May 2010
issue of CRMMagazine (Bolte, T. Still Struggling, 2007)

In 2001, Doug Laney from Gartner developed the concept and coined the term 'Extended
Relationship Management' (XRM) (Silverman, L.L., 2000.)Laney defines XRM as extending
CRM disciplines to secondary allies such as the government, press and industry consortia.
11
Dennison DeGregor (2011) describes a shift from 'push CRM' toward a 'customer transparency'
(CT) model, due to the increased proliferation of channels, devices, and social media(Collica, R.S,
2007) Another trend worth noting was the rise of Customer Success as a discipline within
companies. More and more companies establish Customer Success teams as separate from the
traditional Sales team and ask them with managing existing customer relations. This trend fuels
demand for additional capabilities for more holistic understanding of the customer health, which
was a limitation for many existing vendors in the space(Adrian Payne , P.F., 2005) As a result, a
growing number of new entrants enter the market, while existing vendors add capabilities in this
area to their suites.
According to a Sweeney Group definition, CRM was "all the tools, technologies and procedures
to manage, improve, or facilitate sales, support and related interactions with customers, prospects,
and business partners throughout the enterpris(Prasongsukarn, Kriengsin,2006)The quote assumes
that CRM is involved in every Business-to-Business (B2B) transaction(Harris, J.G., Kohli, A.K.
2001)

Despite the general notion that CRM systems were created for the customer-centric businesses,
they can also be applied to B2B environments to streamline and improve customer management
conditions. For the best level of CRM operation in a B2B environment, the software must be
personalized and delivered at individual levels (Yun E. Zeng, H. Joseph Wen, David C. Yen,
2003). The main differences between business-to-consumer (B2C) and business-to-business CRM
systems concern aspects like sizing of contact databases and length of relationships (DeGregor,
Dennison,2011) Business-to-business companies tend to have smaller contact databases than
business-to-consumer, the volume of sales in business-to-business is relatively small. There are
fewer figure propositions in business-to-business, but in some cases, they cost a lot more than
business-to-consumer items and relationships in business-to-business environment are built over
a longer period of time. Furthermore, business-to-business CRM must be easily integrated with
products from other companies. Such integration enables the creation of forecasts about customer
behavior based on their buying history, bills, business success, etc. An application for a business-
to-business company must have a function to connect all the contacts, processes and deals among
the customers segment and then prepare a paper. Automation of sales process is an important

12
requirement for business-to-business products. It should effectively manage the deal and progress
it through all the phases towards signing. Finally, a crucial point is personalization.

It helps the business-to-business company to create and maintain strong and long-lasting
relationship with the customer (Hasan, M. R., Rahman, M., And Khan, M. M, 2013)
An example was with Costco Wholesale Corporation using Free CRM to track its business-to-
business partnerships and programs. The firm was able to track all data and negotiate with affiliate
partners to track the relationship from beginning to end. It also helps the firm track special
programs with participating organizations and give special discounts and deals (Nirpaz G., Pizarro
F, 2016)
In globally, in the current literature on CRM usage, scholars have provided a multitude of
definitions for CRM systems. Most definitions focus on the technology portion of CRM,
specifically the information system that house the data (Vella&Caruana, 2012). A full description
of CRM should include the people and process that are part of any detailed implementation (Ernst,
Hoyer, Krafft, & Krieger, 2011). Using a blend of definitions from other research, Vella and
Caruana (2012) defined CRM as the integration of people, systems, and processes to achieve
customer satisfaction throughout the product life cycle. The failure of many companies to adopt
this more holistic view of CRM may be a key reason that so many CRM implementations have
failed to meet expectations (Maklan, Knox, &Peppard, 2011). An accurate definition alone is not
enough to ensure the success of any system.
African context, According to kotler (1997) good customer service was an important aspect of
whole business process. It was also creates customer satisfaction, loyalty, high profitability and
eventually increases organizational growth. Thus, good customer service is the primary reason that
customers differentiate company from its competitors. So, it was clearer to state that business
success was due to the good customer service, in other words if the customer service of any
organization increase, the growth of the organization increase in terms of sales growth, profit,
brand equity and employees growth.
Customer relationship management (CRM)
Customer relationship management (CRM) a term that refers to practices, strategies and
technologies that companies use to manage and analyze customer interactions and data throughout

13
the customer lifecycle, with the goal of improving business relationships with customers, assisting
in customer retention and driving.
Organizational performance:
An organization's performance, it was necessary to be able to quantify the results, social fulfilment,
objectives, and goal setting. It comprises the actual output of organizational performance.

Prossed by (Shaw, Robert, 1991). And (David Sims, 2007).

Related in Somalia
In Somalia, understanding customer service was realized the most important one in
organizational growth. Obviously, electronic computer enterprise confirmed the significant of
customer service in organizational success that was why many privately owned companies
established.
In this study, the need of some computer-based service including, repairing installing, speed
delivery, and guarantee service are key to both of company existence and customer satisfaction.
Although there are several studies which that touches the role of customer service and business
market and some time with Organizational growth. Yet much on them did not bother to analysis
and study the impact of customer service and Organizational growth which is different subject
matter. (Philip Kotler, 1997).
In Puntland understanding customer service was realized the most important one in
organizational growth. So, it was clearer to state that business success was due to the good
customer service (Upgrading and Rehabilitation of Customs Facilities, Developing Customs
Intelligence and Enforcement Capacity, and Monitoring and Evaluation).

14
2.2 Conceptual framework

Figure 2.1: Conceptual framework

Customer relationship management

(IV) Organizational performance (DV)
• Customer orientation • Leadership
• Knowledge management • Motivation
• A sales professional should think • Organizational culture
from the customer’s perspective .

• Knowledge Management

Knowledge management was a concept in which an organization deliberately gathers, organizes,

shares and analyses its knowledge in terms of resources, documents and people skills. As a result
of technology advancement the way we access and embodies information has changed; in the
current scenario many organizations have knowledge management frameworks in place.
Knowledge Management has become a treasurable business tool; its complexity is often vexing
and as a field, will still be under development for a long time to come. Knowledge management
will be integrated into the basket of effective management tools. The objective of Knowledge
Management is to build and exploit intellectual capital in an effective and profitable manner.

• A sales professional should think from the customer’s perspective. Don’t only think

about your own targets and incentives. Suggest only what was right for the customer. Don’t sell
an expensive mobile to a customer who earns rupees five thousand per month. He would never
come back to you and your organization would lose one of its esteemed customers.

15
 • Leadership

Leadership was the prime factor affecting the success or failure of organizations. It was the process
in which one individual exerts influence over others. Leadership was a process that enables a
person to influence others to achieve a goal and directs an organization to become rational and
consistent.
• Motivation

Motivation was a catalyst to move individuals toward goals. Motivation was the processes that
account for an individual’s intensity, direction, and persistence of effort toward attaining a
goal. Motivation may be defined more formally as a psychological or internal process initiated
by some need, which leads to the activity which will satisfy that need. Motivational factors
differ from person to person. According to Abraham Maslow there were five levels of human
needs which need to fulfill for individuals at work. According to this theory the needs were
structured into a hierarchy which starts at the lowest level of need when it was fully met, would
a worker be motivated by the opportunity of having the next need up in the hierarchy satisfied.

• Organizational Culture

Since the past 25 years the concept of organizational culture has been widely accepted to
understand human systems. It was a valuable analytical tool in its own right. Organizational
Culture was the totality of beliefs, customs, traditions and values shared by the members of the
organization. Each aspect of organizational culture can be seen as an important environmental con
the culture of a group can be defines as a pattern of shared basic assumptions that the group learned
as it solved its problems of external adaption and internal integration, that has worked well enough
to be considered valid and therefore, to be taught to new members as the correct way to perceive,
think, and feel in relation to those problems

16
2.2.1 : Customer relationship management (IV)

Customer relationship management (PCRM) was a term that refers to practices, strategies and
technologies that companies use to manage and analyze customer interactions and data throughout
the customer lifecycle, with the goal of improving business relationships with customers, assisting
in customer retention and driving sales growth. CRM systems were designed to compile
information on customers across different channels -- or points of contact between the customer
and the company -- which could include the company's website, telephone, live chat, direct mail,
marketing materials and social media. CRM systems can also give customer-facing staff detailed
information on customers' personal information, purchase history, buying preferences and
concerns.
Customer relationship management (CRM) a term that refers to practices, strategies and
technologies that companies use to manage and analyze customer interactions and data throughout
the customer lifecycle, with the goal of improving business relationships with customers, assisting
in customer retention and driving.

• Customer orientation on organizational performance

Customer or market orientation was well recognized as one of the main contributors to the success
and performance of a firm (Appiah-Adu and Singh, 1998). Smirnova et al. (2011) suggested the
direct role of customer orientation on business performance and tested the impact of market
orientation as direct and indirect antecedents of relational capabilities and thus subsequently of
overall firm performance. Jacks et al. (2011) suggested a framework that categorizes measures of
the impact of IT into productivity, profitability, and intangible benefits, while the antecedents of
IT impact are categorized into IT resources and external factors. Melville et al.(2004) demonstrated
the continual importance of IT to the creation of business value and competitive advantage. Aral
and Weil (2007) demonstrated that IT investment allocations and organizational IT capabilities
drive differences in firm performance. Most existing studies stress that for firms with high
relational capabilities, superior benefits were expected (Smirnova et al., 2011). Similarly, Jacob
(2006) considered market success as a direct outcome of the firm's ability to integrate customer
interaction in its organizational routines. Also, many studies have been conducted to investigate

17
the influence of service quality on business performance. Anderson et al. (1994) indicate that
service quality has a positive effect on customer satisfaction and company’s profitability.
McEachern and Warnaby (2005) define customer orientation as a component of market orientation
that focuses on putting the customers at the center of strategic focus. Kotler (2004) emphasizes the
need for organizations to move from the level of studying customer segments to shaping separate
offers, services and messages to individual customers. Hence such firms may need to collect
information on each customer’s past transactions, demographics, psychographics, and media and
distribution preferences. And they would hope to achieve profitable growth through expenditures
by building high customer lifetime value. He further asserts that the ability of a company to deal
with customers, one at a time has become practical as a result of advances in factory customization,
computers, the internet and database marketing software. Nakata and Zhu (2006) assert that
customer orientation encompasses the analysis of customers needs, and responsiveness of
organization to such needs. But some salient questions have been raised concerning whether
customer orientation actually translates to better performance (Ang and Buttle, 2006; Avnet and
Higgins, 2006).
It was obvious that for customer orientation to translate into performance there was need for
efficient marketing information system that keeps track of all customers, their purchases, number
of patronages, needs, complaints etc. (Kohli and Jaworski, 1990). An evident limitation of this line
is the assumption that for a firm to be customer-oriented it must possess a working marketing
information system, and managers in such organizations must embrace the culture (Martin and
Bush, 2006), considering the precarious situation of small and medium scale businesses in a
developing economy like Nigeria this looks almost impossible, coupled with the fact that there is
need for definite marketing competence that would facilitate the culture in such a firm for it to
translate into positive performance (Hill and Jones,2006). Small and Medium Enterprise
Development Agency of Nigeria, SMEDAN (2008) reports that most small and medium scale
businesses in Nigeria dies before their fifth anniversary, while Ashibogwu (2008) notes that one
of the reasons for this high failure was lack of use of market research to confirm demand and assess
suitability of proposed offering as well as maintaining high level of customer patronage. To worsen
this situation sparse amount of literature, exist on how small and medium scale businesses could
survive through the adoption of customer orientation in a turbulent economy like Nigeria. Starting
from this consideration, the purpose of this study was to shed light on how Nigerian small and

18
medium scale firms could practice customer orientation and the contribution of marketing
information system, managerial attitudes and marketing competence in translating it to
performance.
Day (1994) defines customer orientation as a concept which transforms marketing into a potent
competitive weapon, shifting organizational values, beliefs, assumptions, and premises towards a
two-way relationship between customers and the firm. Narver and Slater (1990) say customer
orientation is the sufficient understanding of one’s target buyers to be able to create superior value
for them continuously. Customer oriented culture suggests that a firm concentrates on providing
products and services that meet customer needs (Day and Wensley, 1983; Dean and Bowen, 1994;
Noble, Rajiv and Kumar, 2002; Strong and Harris, 2004). Schneider, Ehrhart, Mayer, Saltz, and
Niles-Jolly (2006) argue that customer orientation requires a continuous positive disposition
towards meeting customers’ exigencies and therefore a high degree of concern for these customers.
While Schneider and Bowen (1993) suggest that customer-oriented culture is nutured through
regular supply of customer information about their needs so as to be able to design and deliver
good products. Customer orientation as a component of market orientation has its fundamental
thrust in pursuit of putting customers at the center of strategic focus (McEachem and Warnaby
2005). A customer-oriented culture involves excellence in customer interactions, market and
customer familiarity and an emphasis on cooperation (Deshpande, Farley and Webster, 1993;
Noble, Rajiv and Kumar, 2002).
Nakata and Zhu (2006) and Payne (1988) opines that many organizations have well-developed
planning processes but the extent to which customer goals were included, implemented, and
monitored were inadequate. The mission of the organization as far as the customers are concerned
must be well articulated; present performance level in this regard must be ascertained. Any vacuum
between the organizational desires and actual achievement must be outlined. Operational measures
are seen to stimulate a more focused and integrated organizational effort, and provide a benchmark
for determining whether customer orientation strategies were working as intended. Measurements
can be carried out through formal and informal techniques.
The formal techniques use customer-based quality performance measures to gauge true perception
as well as subconscious factors which impel customer behavior, while informal measurement
evolves where there is no set standard. In this case, rule of thumb was applied. A number of
researchers have examined the link between customer orientation and performance. Although

19
several studies have supported an association between customer orientation and profitability but
most of these studies were conducted in US, Europe and Asia (Slater and Narver, 2000; Piercy,
Harris, & Lane, 2002; Liu, Luo, and Shi, 2003). Traditionally, the literature concerning the
marketing concept has assumed that the implementation of the customer orientation would lead to
superior organizational performance (Piercy et al, 2002). Customer orientation was significantly
important in enabling firms to understand the market place and develop appropriate product and
service strategies to meet customer needs and requirements (Liu et al, 2003),which translate into
performance, and Bitner et al., (1990) and Ambler (1999) have found a relationship between
market orientation and market performance. Kennedy et al., (2002) also recommends that the
development and implementation of customer orientation was an impetus for organizational
positioning in the market place.
Extant literature in the fields of strategy and marketing suggests that customer orientation influence
organizational performances through organizational responsiveness. For example, Sinkula (1994)
and Slater and Narver(1995) suggest that the market-driven organization was well positioned to
anticipate the developing needs of customers and to respond to them through the addition of
innovative products and service. This ability gives the market-orientation organization the
advantage in the speed and effectiveness of its response to opportunities and threats. However,
Christensen and Bower (1996) and Grewal and Tansuhaj(2001) find that customer orientation
leads to negative firm performance under disruptive technological innovation and crisis. The
reason, according to these authors, was customer orientation would ―cause firms to lock into a
standard mode of cognition and response‖ (Grewal and Tansuhaj 2001).
Hult et al., (2005) also found that market orientation‘s performance effects were felt through
responsiveness, i.e., the effects of market orientation are mediated by organizational
responsiveness. They further pointed out that the association of MIP (market information
processing) and responsiveness reinforce the need to ―reorient‖ the market orientation debate. In
answering the call by Hult et al., (2005), this study seeks to add more precision and insights to the
work of these pioneering Tansuhaj (2001) find that customer orientation leads to negative firm
performance under disruptive technological innovation and crisis. The reason, according to these
authors, was customer orientation would ―cause firms to lock into a standard mode of cognition
and response‖ (Grewal and Tansuhaj 2001).

20
Hult et al., (2005) also found that market orientation‘s performance effects were felt through
responsiveness, i.e., the effects of market orientation are mediated by organizational
responsiveness. They further pointed out that the association of MIP (market information
processing) and responsiveness reinforce the need to ―reorient‖ the market orientation debate. In
answering the call by Hult et al., (2005), this study seeks to add more precision and insights to the
work of these pioneering routines and process (routine rigidity). Drawing on cognitive theory, we
propose that the antecedents of the motivational and structure dimensions of instrumental
responsiveness are different. We test our hypothesis with 300 high technology firms in China.

The importance of knowledge management on organizational performance we live in an era

where knowledge plays a dominant role in our daily lives and in the business world. Knowledge
has always been of paramount importance for humankind and its evolution, as well as for the
management of organizations. What has changed in recent years however, was the fact that
knowledge has been given value as an economic asset, a factor that was completely disruptive for
organizations. According to Foray (2004), the manner in which knowledge was acquired,
produced, disseminated and marketed, or in other words managed, cannot be compared to any
other previously managed economic asset, because it possesses characteristics and dimensions that
influence the manner in which it was managed (Foray, 2004). Knowledge plays a central role in
the differential competitive advantage of organizations and knowledge management (KM) helps
them to deal with changes in the business environment (Hansen et al., 1999). Organizations need
to use knowledge in order to improve their performance and to ensure long-term viability in the
current business environment (Malhotra, 2001). The promise of increased organizational
performance has contributed to the development of various aspects of knowledge management
(Chua & Lam, 2005). These views have also contributed to the development of various aspects of
KM, but have also emphasized a lack of holistic view in both practice and scientific literature
(Quintas, 2008). According to the Gartner Group (2007), approximately 80% of KM initiatives
have not met all their objectives. Akhavan et al. (2005) studied some factors underlying these
shortcomings, and concluded that the reasons could be related to a lack of: any connection between
KM and the organization’s strategic objectives; any knowledge-based strategies to manage
content; any connection between KM practices and the daily work of individuals; familiarity of
top management with the dimensions of KM and its requirements; improper selection of

21
knowledge team members, etc. According to these authors, these problems obstruct the
effectiveness of KM efforts and any significant contribution they may make to business results
(Akhavan et al., 2005).
Tiwana has affirmed that “knowledge drives strategy and strategy drives KM” and has emphasized
that “without a clearly articulated link between KM and business strategy, even the world’s best
KM system was deliver nothing. Strategists (strategic business managers and knowledge
managers) should therefore take note of the major impact of knowledge on the formulation of
corporate strategy and organizational success” (Tiwana, 1999, p. 103).Even though there have
been a lot of effort in developing appropriate approaches to KM in the last decade, Quintas (2008)
highlights the fact that in many cases, the links between KM goals and approaches and the
organization’s strategic objectives are not well-established, which leads to a poor return on KM
investment. NPerrin et al. (2006) state that “The difficulties encountered by practitioners like
Knowledge Managers tempted by this adventure and by researchers seeking to identify these
problems, or even hoping to propose improvements, can be explained by the parcelling out of the
different approaches and the absence of an integrative vision” p. 33. These observations, both from
practice and research, highlight the need to better explain the connection between KM and
organizational performance. Certain authors have suggested that this limitation requires an effort
to define integrative frameworks that deal with an organization as a complete system (Earl, 2001;
Hazlett et al., 2005; Martensson, 2000; Perrin et al., 2006). In addition, since KM holds a strategic
role in organizational management, a proper understanding of how it can help improve the
performance of organizations remains a priority for management research (Earl, 2001; Perrin et
al., 2006; Quintas, 2008). The issue concerning KM and its tangible contribution to organizational
performance (OP) has been the basis of our work. In an organizational environment, knowledge
takes these three forms, and must be mastered and managed in such a way that it can be read,
interpreted, understood and applied to a function or a specific activity in an organization’s business
processes and particularly, in business decisions. However, mastering knowledge and its
components requires consideration of its various characteristics in order to understand its dynamics
in the organization. The characteristics of organizational knowledge were also useful to define
initiatives and mechanisms, in order to better manage the knowledge that was available and
required for business-oriented decisions. Knowledge can thus become a veritable resource and
help achieve an organization’s strategic and performance objectives (Grant, 1996; Foray, 2004).

22
Knowledge, with its various characteristics, was a complex resource to manage. However,
organizations view knowledge as a resource that can provide them with a competitive advantage
(Grant, 1996). Knowledge was viewed as an unrivalled, intangible asset. Understanding the
dynamics of knowledge characteristics in an organization was essential to the implementation of
management initiatives and mechanisms to manage knowledge as a strategic resource for OP
(Carlucci &Schiuma, 2006). Knowledge must therefore be managed from a strategic point of view
in order to enable individuals, referred to by Drucker as “knowledge workers”, to better accomplish
their daily tasks and make better decisions to meet their strategic objectives (Drucker, 1999).
This view of organizations was based on the knowledge-based theory proposed by Grant (1996),
and was founded on the resource-based view, put forward by Barney in 1991, but originally
proposed by Edith Penrose in the 1950s. The resource-based view rests on the heterogeneous
nature and lack of mobility of certain resources, which the organization recognizes as leverage
points. These represent the organization’s competitive advantage and were essential to
performance (Grant, 1996). The value of knowledge for an organization was intrinsically related
to the context in which it was created and its use. Organizations need to use their knowledge to
perform better and innovate in order to ensure long-term viability in the current business
environment (Malhotra, 2001). Organizations were thus supposed to manage their knowledge and
link knowledge management to the individuals’ daily activities, basically involving decision
situations (Alenljung, 2008).
KM was defined in the literature from several points of view and perspectives, as it appears at the
intersection of several disciplines, including information sciences, strategic management, human
resource management, information and technology systems management (Quintas, 2008). The
management science perspective has benefited from advances in competency-based theory
(Spender, 1996), resource-based theory (Barney, 1991; Amit & Schoemaker, 1993; Grant, 1996),
as well as theories used in psychology and education regarding the cognitive aspects of learning
(Wenger, 1998). With computer sciences, the debate has focused on the development of
technological tools, integrative platforms such as portals, networks (intranet, groupware, etc.),
decision aids or support and information analysis systems (data warehouse) (Tiwana, 1999; Hazlett
et al., 2005).
For some authors, KM was a function which creates, identifies and manages organizational
knowledge for long-term benefits (Darroch, 2003). Gold et al. (2001) consider that “KM was a

23
complex undertaking involving the development of structures that allow the firm to recognize,
create, transform, and distribute knowledge”. KM was also a collection of activities that are
organized and systematized to meet corporate objectives (Malhotra, 2001). Rivard and Roy (2005)
define KM as “…the creation and organized use of knowledge held by members of an organization
for the purpose of helping the organization meet its strategic objectives and to innovate” (our
translation, p. 30). Many others have also considered KM as a set of activities for better OP
(Balasubramanian et al., 1999; Zack, 1999; Holsapple& Singh, 2003; Holsapple& Joshi, 2003;
Holsapple& Joshi, 2004; Kalling, 2007; Pee &Kankanhalli, 2009; Fugate et al., 2009). OP, as well
as KM, has numerous definitions, which implies many ways of evaluating it. Kaplan and Norton
(2003) argue that financial and non-financial aspects must be considered in order to analyze OP,
which depends on business objectives (Kaplan & Norton, 2003). Several elements, e.g., business
processes, culture, image, policies, leadership, innovation were mentioned as ways to improve
overall business outcomes and are founded on knowledge creation and decisions (Holsapple&
Singh, 2003; Kalling, 2007; Holsapple, 2008). A deeper examination of the literature on KM
reveals that few studies propose an OP-oriented approach based on an integrative framework,
despite the fact that reference was often made to OP in KM definitions (Ipe, 2003; Hazlett et al.,
2005; Kalling, 2007). Furthermore, integrative frameworks that show links between the needs of
the organization and the organization’s strategic objectives were even more scarce (Hazlett et al.,
2005; Rivard& Roy, 2005; Zack et al., 2009; Kuo& Ye, 2010). Rivard& Roy (2005) propose an
approach, which they call “strategic knowledge management”. Their approach focuses on business
performance, with an emphasis on processes, activities and technology to meet the organization’s
strategic vision, while “putting forward human creative and social capabilities in the creation and
use of knowledge” (p. 29). In a more recent study Pee &Kankanhalli (2009) mention many studies
which have investigated organizational dimensions and their influence on KM processes, but only
two papers specify measures for OP (Gold et al., 2001; Chuang, 2004). Achieved a high level of
KM excellence, as recognized by MAKE (Most Admired Knowledge Enterprises). The authors
reported a positive effect of KM on financial performance. However, they were unfortunately
unable to objectively validate these statements by defining the determining factors. Despite the
fact that several indicators were collected regarding the performance of decision-making, most
mechanisms and initiatives were poorly understood and require further study (Holsapple& Wu,
2008). Many organizational dimensions were determining factors for the success of KM initiatives,

24
practices and approaches within organizations. Rivard and Roy (2005) state that when planning
KM “the organization, culture and process were just as determinant as information management
technological means and tools” (p. 30). This approach introduces activities and actions for KM
implementation and analysis, which are oriented toward an organization’s objectives. Perrin et al.
(2006) present similar visions regarding KM shortcomings and propose initiatives, mechanisms in
order to put KM into practice within the organization. They consider that KM should be based on
the following dimensions: Culture: encouraging knowledge sharing. Strategy: determining the
knowledge to be shared and protected within the organization. Structure: promoting or supporting
the development of KM practices. Technology: developing a system that allows coding and the
transfer of knowledge. This approach integrates both organizational and technological dimensions
in order to connect the KM approach to the organization’s strategy or business objectives.
Holsapple and Wu (2011) empirically justified the relevance and value of giving special attention
to the business strategy and KM. However, details on which KM strategy the managers should
adopt or how this strategy should be implemented to measure the performance were not given, but
they mention improvements on decision results (Holsapple& Wu, 2011). In this sense, the authors
put forward the relevance of KM to guide the organization’s strategy and take into account
dimensions that was promote the creation of value, as mentioned by Zack (1999), Rivard (2005)
and Zack et al. (2009). Our literature and argumentation illustrates the potential of KM to help
organizations deal with changes in the business environment. These issues concerning KM and its
tangible contribution have motivated our research and our efforts to clearly identify mechanisms
in the missing link mentioned by Holsapple and Wu (2008). Our integrative KM framework was
presented in the next section.

.
• 2.2.2 Organizational performance (DV)

An organization's performance, it was necessary to be able to quantify the results, social fulfilment,
objectives, and goal setting. It comprises the actual output of organizational performance.
Organizational Performance have an important role in our daily lives and therefore, successful
organizations represent a key ingredient for developing nations. Thus, many economists consider
organizations and institutions similar to an engine in determining the economic, social and political
progress. Precisely for this reason, in the last 22 years, there were 6 Nobel prizes awarded to

25
researchers who have focused on the analysis of organizations and institutions. Continuous
performance was the focus of any organization because only through performance organizations
are able to grow and progress. Thus, organizational performance was one of the most important
variables in the management research and arguably the most important indicator of the
organizational performance. (Georgopoulos&Tannenbaum, 1957).
Organizational performance assessment represents a progression from independent and often-
uncoordinated efforts in library assessment and strategic planning to the development of integrated
organizational performance practices that can better align and focus planning, strategy,
performance, assessment, and organizational development within academic and research libraries.
(Hernon, 2009). Even more than in the mid-1990s, there is a recognition that academic institutions
and their libraries was have to make difficult choices during the next decade due to challenging
financial conditions; rapid changes in educational, informational, and technological methods and
resources; and the continual development of new approaches for teaching, learning, research, and
clinical care. All of these factors directly impact the library environment. Stakeholders also have
become more insistent on greater accountability in higher education and want evidence of
efficiency and effectiveness.
As noted by Dugan, Hernon, and Nitecki (2009), ―To stakeholders wanting greater
accountability, assessment and evaluation measure how the institution, college or school, program,
or course adds value to the education and experience that students receive and prepares them for
future careers‖ (p. 46). These authors go on to state: Assessment was a process of measuring
efficiency, effectiveness, and performance to learn if an institution achieves its stated mission and
goals. … Relevant information is gathered, and the interpretation and analysis of evidence provide
insights into the congruence between the institution‘s stated mission, purposes, and objectives, and
the actual outcomes expounded by institutional programs and activities. Assessment findings
inform decision making and guide strategic planning. … As an ongoing process, assessment
activities are applied to measure progress, guarantee that progress is sustained, and ensure that the
changes and improvements implemented are effective. Findings are conveyed to the various
stakeholders. (Dugan, Hernon, &Nitecki, 2009)
Ultimately, then, within this context, libraries must be able to report―with quantitative measures
and qualitative assessment―that they make a critical contribution to the institution‘s core mission.
This was the work of organizational performance assessment. Like any other assessment, it was

26
not an end in itself, but rather a means; that was, a means to effective organizational performance.
Organizational performance assessment focuses on the system or set of practices that was guide
organizations in ―living the future‖ within an environment of constant change and uncertainty.
The key to these practices was integration and alignment—of the library with the parent institution,
of planning with strategy, of assessment with planning, and of organizational development with
assessment. (Nitecki, 2008)
Organizational performance deals with the Outcomes assessment was an integral part of the
institutional effectiveness cycle of planning, implementation, assessment, and improvement of the
plan. While libraries have traditionally maintained myriad output data (e.g., number of books
circulated, number of items cataloged, number of reference questions answered), these data alone
do not demonstrate whether the library‘s mission is being accomplished, and with what degree of
quality. The purpose of outcomes assessment of academic libraries was to measure their quality
and effectiveness, focusing on an organizational analysis of the library as a whole, and of its
constituent activities and services, and the contributions they make to accomplish the purposes of
the university or college of which it was a part. It follows from this purpose that outcomes
assessment must begin with an analysis of the parent organization‘s mission, goals, and objectives,
and an identification of the elements of them that the library supports. Assessments should include
all such elements: learning/teaching, research, service, administrative processes, and whatever
other purposes the institution pursues. (ACRL, 1998).

2.3 Empirical review

Customer relationship management includes various strategies and techniques to maintain healthy
relationship with the organization’s existing as well as potential customers. Organizations must
ensure customers were satisfied with their products and services for higher customer retention.
Remember one satisfied customer brings ten new customers with him where as one dissatisfied
customer takes away ten customers along with him.
In simpler words, customer relationship management refers to the study of needs and expectations
of the customers and providing them the right solution.

This study relates my IV and DV variables.

27
Customer Relationship Management leads to satisfied customers and eventually higher business
every time. Customer Relationship Management goes a long way in retaining existing customers.
Customer relationship management ensures customers return back home with a smile. Customer
relationship management improves the relationship between the organization and customers. Such
activities strengthen the bond between the sales representatives and customers.

Steps to Customer Relationship Management

Customer orientation on organizational performance

Customer or market orientation is well recognized as one of the main contributors to the success
and performance of a firm (Appiah-Adu and Singh, 1998). Smirnova et al. (2011) suggested the
direct role of customer orientation on business performance and tested the impact of market
orientation as direct and indirect antecedents of relational capabilities and thus subsequently of
overall firm performance. Jacks et al

The importance of knowledge management on organizational performance

We live in an where knowledge plays a dominant role in our daily lives and in the business world.
Knowledge has always been of paramount importance for humankind and its evolution, as well as
for the management of organizations.

A sales professional should think from the customer’s perspective. Don’t only think about
your own targets and incentives. Suggest only what is right for the customer. Don’t sell an
expensive mobile to a customer who earns rupees five thousand per month. He would never come
back to you and your organization would lose one of its esteemed customers.

An individual needs time to develop trust in you and your product. Give him time to think and
decide.

In this uncertain economic and social climate there are many factors that affect the organizational
performance. The most essential factors affecting organizational performance are Leadership,
Motivation, Organizational Culture and Knowledge Management.

28
This article proposed by the article is Written By “Prachi Juneja” and Reviewed by Management
Study Guide Content Team. (2015).

2.4 Research gap

The effect of Customer Relationship Management and organizational performance has not
received yet adequate research in Somalia. Therefore, this study will attempt to fill this gap by
investigating the effect of Customer Relationship Management and organizational performance in
Bossaso Puntland Somalia, I recommend to make Garowe, Badhan in Puntland Somalia.

29
 CHAPTR THREE:
RESEARCH METHODOLOGY
3.0 Introduction

This Chapter presents the design, population, sample, research methods and instruments, quality
of instrument, procedure and data analysis techniques that were employed in the study.

3.1 Research design

The study was conducted through descriptive correlational design.
The researcher will use this approach in order to describe and to investigate the customer
Relationship management and organizational performance in some selected companies in Bosaso
using information gained from the questionnaire. This design was selected for this study because
it was effective, less cost and easily accessible for collecting information from the target population
quantitative will be used
Quantitative information or data was based on quantities obtained using a quantifiable
measurement process

3.2 Research population

The target populations for this study will be 50 in Bosaso- Somalia the target populations include
the managers and employees. The region itself is coextensive with the city and was much smaller
than the h
istorical province of Bari.

3.3 Sample Size

The researchers will be selected some employee which will mentioned above, these will currently
employee and the sample size of the study will 44 respondents
To determine the ideal sample size for a population, the study use Slovene’s formula which is N

n= N
1+N(e)2
Where n= sample size. N= population size or target population
e= margin of errors
Than the process we getting the sample size was this way and helps us the solvent’s formula.

30
 n= N
1+N(e)2
n= 50 = 50
1+50(0.05)2 1+50(0.0025)

n= 50 = 50 = 44.4 = 44 respondents
1+0.125 1.125

Table sample of respondents

N Respondents Population Sample size Sampling
1 Employees 18 16 Purposive
2 Customers 24 21 Purposive
3 Managers 8 7 Purposive
4 Total 50 44 Purposive

3.4 Sampling Procedure

The sample method will be used purposive to collect information from accessible population from
managers and key financial analysts.

3.5 Research Instrument

Questionnaire will be suitable instrument to obtain information needed can easily described in
writing. Since the sample size was fairly large and there was limited time, questionnaire will
considered ideal for collecting such data. It is suitable tool for collecting lot information over short
period of time. Self- developed questionnaire and close end questions were used in the study.

3.6 Validity and reliability of the instrument

Validity was to prove the validity of the data collection instrument scale was used the validity
relevance questionnaire and the total number of questions.
Reliability was to establish the reliability of questionnaire the researchers was used method of
expertise judgment as best method of reliability after the construction of the questionnaire. The
31
researchers was approach supervisor and other experts that have great knowledge about the topic
of this study to ensure the reliability and validity of the researcher instrument.

3.7 Data collection procedures

This study will be used for primary data, as well as should be collected from respondents in the
area of study. Data was collected using a pre-code structured questionnaire for the survey. The
close-end questions are questions in which all possible so as to pre-specify answers and the
respondents make the choice from the answers provide.
Data collection was being done by a face-to-face personal interview method. An informed
interviewer visits each respondent. This is important because it was helping the respondent to
understand the questions by interpreting them to fit the respondent’s understanding. This was done
to ensure that the respondent answers the questions in the appropriate sequence.
3.8 Data analysis
After the research collect the questionnaire from the respondents, the researcher will use the
quantitative method for analyzing and interpreting data, the data will be analyzed through
correlation.by using statistical package for Social Science technique (SPSS 16.0) and other
applications necessary during the study. The statistical package analyzed variables by computing
relative frequencies, means, and standard deviations to produce valid and reliable data.

3.9 Ethical consideration

Ethical considerations of confidentiality and privacy will address. A concerted and conscious effort
was making at all times to support this promise. A guarantee given to the respondents that their
names will not be revealed in the research report. In order to ensure the success of the research,
directors will link to subordinates in such a manner that each subordinates’ response remained
anonymous apart from being linked to a particular director.

32
3.10 Limitation of the study

There were a lot of limitations and barriers during the researcher conducting this research paper I write
part of challenges other limitations I would write the time I would prepare the thesis in my research.
Some limitations in proposal and thesis are:

Theoretical scope the theory in research study was taken for long time to select the theory that use
in my research study. But after more challenge I get to suitable theory in my topic. And also data
analysis in SPSS it takes time to understand who to analysis the information of respondents

33
 CHAPTER FOUR:
DATA PRESENTATION, ANALYSIS AND INTERPRETATIONS
4.0 Introductions
In this chapter the researcher analysis data collected through the questioner as the quantitative
design which was the base of this study. The results presented in this chapter are formed as a table
and figures to know more the information carried by this chapter

4.1 The profile of the respondents.

Table 4.1.1 The Gender Description

Frequency Percent Valid Percent Cumulative Percent
male 30 68.2 68.2 68.2
Valid female 14 31.8 31.8 100.0
Total 44 100.0 100.0
Sources: primary Date. 2021
On the gender of the respondents, the study found that the above table and figure below
summarizes demographics in gender characteristics the results shown that (68.2%) of the
respondents were male while females formed (31.8%) So that most respondents contributed the
study are the male
Figure 4.1.1 The Gender Description

34
Table 4.1.2 martial status

Frequency Percent Valid Percent Cumulative

Percent
Single 20 45.5 45.5 45.5
Married 22 50 50.0 95.5
Valid Divorced 1 2.3 2.3 97.7
widowed 1 2.2 2.2 100.0
Total 44 100.0 100.0

Sources: primary Date. 2021

Figure 4.1.2 Respondent of martial status
It is observed from above table 4.1.2 and above figure 4.1.2 the majority of the respondents married
people they are 50%. The medium of the respondents were single since they are 45.5% and the
minority of the respondents were divorced since they are 2.3%. and were widowed 2.2% The
table 4.2 and figure 4.2 shows the marital status of respondents information

35
 Table 4.1.3 Age of the respondents

Frequency Percent Valid Percent Cumulative

Percent
15-25Yrs 18 40.9 40.9 40.9
26-35Yrs 10 22.7 22.7 63.6
Vali
36-45Ys 15 34.1 34.1 97.7
d
45 and above Yrs 1 2.3 2.3 100.0
Total 44 100.0 100.0
Sources. Primary Data 2021
Table 4.1.2 above and figure 4.1.2 below, shows the age of the majority 40.9% the total respondent
aged between 15-25 years old, while 22.7% of the total aged 26-35 years old, while 34.1% of the
total respondent aged between 36-45 while 2.3% of the respondent aged above 45 years old so that
most respondents contributed the study are aged between 15-25 years old

Figure 4.1.3 Age of the respondents

36
Table 4.1.4 Educational of the respondents
Frequency Percent Valid Percent Cumulative Percent
Diploma 11 25.0 25.0 25.0
Degree 26 59.1 59.1 84.1
Valid
Master 7 15.9 15.9 100.0
Total 44 100.0 100.0
Sources primary Data 2021
Table 4.1.3 above and figure 4.1.3 below show that the researcher classified the levels of education
of respondents into four parts the bachelor degree is greatest percentage value of 59.1%, while
diploma is 25%, and while of the Master degree is 15.9%, so that most respondents contributed
the study are the Bachelor.

Figure 4.1.4 Respondent of educational level

37
 Table 4.1.5 Experience of the respondent

Frequency Percent Valid Percent Cumulative

Percent
below one year 11 25.0 25.0 25.0
1-2Yrs 12 27.3 27.3 52.3
3-4Yrs 9 20.5 20.5 72.7
Valid
4-5Yrs 11 25.0 25.0 97.7
6-7Ys 1 2.2 2.2 100.0
Total 44 100.0 100.0
Sources. Primary Data 2021

Concerning about the experience the respondent workers 27.3% are the most experienced about
below 1-2 years experienced, and below1 years are 25%, while 20.5% of the respondents are
experienced of 3-4 year, and 25% of the respondents are experienced, 4-5 years and , 2.2 %, are
Respondent of 6-7 years the most respondents contributed the study have experienced 1-2 and 4-5
below 1 years.

Figure 4.1.5

38
4.2 Data presentation, analaysis and interpretation of result
Table 4.2.1 Market orientation is the which contributes the success and performance of a firm

Frequency Percent Valid Percent Cumulative

Percent
strongly Agree 24 54.5 54.5 54.5
Agree 7 15.9 15.9 70.5
Valid disagree 10 22.7 22.7 93.2
strongly Disagree 3 6.8 6.8 100.0
Total 44 100.0 100.0
Sources of primary Data. 2021
The results in the above table and figure below indicate that (54.5%) of respondents strong agree
and (22.7%) disagree while (15.9 %) are agree and also (6.8%) are strong disagree are , so that the
most respondents are respond strong agree while the least respondents are replied strongly disagree
The figure 4.2.1

39
 Table 4.2.2 Customer orientation increases the profitability of an organization
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 12 27.3 27.3 27.3
Agree 28 63.6 63.6 90.9
Valid disagree 3 6.8 6.8 97.7
strongly Disagree 1 2.3 2.3 100.0
Total 44 100.0 100.0
Source of primary data. 2021

In this statement indicates that the researcher wants to know that It is not receiving the attention it
deserves The result shows that the respondents out of (63.6%) of respondents was Agreed and
(27.3%) was Strongly agreed and (6.8%) was answered disagree and also (2.3%) answered strong
disagreed ,so that most respondents respond Agree
Figure 4.2.2

40
 Table 4.2.3 Customer orientation is used for customers at the center of strategic focus
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 12 27.3 27.3 27.3
Agree. 16 36.4 36.4 63.6
Valid disagree 11 25.0 25.0 88.6
strongly Disagree 5 11.4 11.4 100.0
Total 44 100.0 100.0
Source of primary data.2021
In this statement indicates that the researcher wants to know that It is not receiving the attention it
deserves The result shows that the respondents of (36.4 %) of respondents was Agree and (27.3%)
was Strongly agreed and (25%) was answered disagree and also (11.4 %) was answer Strong
disagree, so that the most respondents respond Agree.
Figure 4.2.3

41
 Table 4.2.4 Profitable growth are achieved through Customer orientation
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 14 31.8 31.8 31.8
Agree 14 31.8 31.8 63.6
Valid disagree 10 22.7 22.7 86.4
strongly Disagree 6 13.6 13.6 100.0
Total 44 100.0 100.0
Source of primary data.2021

In this statement indicates that the researcher wants to know that It is not receiving the attention it
deserves The result shows that the respondents out of (31.8%) of respondents was agreed and
(31.8%) was Strongly agreed and (27.7%) was answered disagree and also (13.6%) answered was
answered strongly disagreed so that most respondents respond agreed and strongly agree.
Figure 4.2.4

42
Table 4.2.5 Customer orientation encompasses the analysis of customers’ needs

Frequency Percent Valid Percent Cumulative

Percent
strongly Agree 14 31.8 31.8 31.8
Agree 18 40.9 40.9 72.7
disagree 7 15.9 15.9 88.6
Valid
strongly
5 11.4 11.4 100.0
Disagree
Total 44 100.0 100.0

Source of primary data.2021

In this statement indicates that the researcher wants to know that It is not receiving the attention it
deserves The result shows that the respondents out of (40.9%) of respondents Agreed and (31.8%)
was strongly agreed and (15.9%) was answered Disagree and also (11.4%) answered Strong
disagree so that most respondents respond Agree
Figure 4.2.5

43
 Table 4.2.6 knowledge plays a dominant role in our daily lives and in the business world
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 35 79.5 79.5 79.5
Agree 7 15.9 15.9 95.5
Valid Disagree. 1 2.3 2.3 97.7
Strongly Disagree 1 2.3 2.3 100.0
Total 44 100.0 100.0

Sources of primary data 2021

The consequence in the above table 4.2.6 and figure below 4.2.6 below are observed that the Most
of respondents Strongly agree are 79.5% , next respondents are agree were 15.9% , while the
minority of respondents are Disagree 2.3%,and also Strongly agree are 2.3% , so that the most
respondents are answer Strongly agree while the least respondents are replied Disagree, strongly
disagree

Figure 4.2.6 knowledge plays a dominant role in our daily lives and in the business world

44
 Table 4.2.7 Knowledge is an asset of the organization
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 11 25.0 25.0 25.0
Agree 28 63.6 63.6 88.6
Valid disagree 3 6.8 6.8 95.5
strongly Disagree 2 4.5 4.5 100.0
Total 44 100.0 100.0

Sources of primary data 2021

From the above table 4.2.7and below figure 4.2.7 are shows that of respondents Agree are 63.6%
and respondents Strongly agree were 25%. While respondents of Disagree are 6.8% and also
respondents strongly disagree were 4.5%. So that the majority respondents are answer Agree, while
the minority of respondents are respond strongly disagree
Figure 4.2.7

45
 Table 4.2.8 Knowledge plays a central role in the differential competitive advantage of
organizations
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 12 27.3 27.3 27.3
Agree. 15 34.1 34.1 61.4
Valid disagree 14 31.8 31.8 93.2
strongly Disagree 3 6.8 6.8 100.0
Total 44 100.0 100.0
Sources of primary data 2021
The outcome in the above table 4.2.8 and figure below 4.2.8 below are shows that the majority of
respondents Disagree are 31.8% , next respondents Agree are 34.1% , and the respondent of
Strongly agree are 27.3%,and the minority of respondent 6.8% of Strongly agree so that the most
respondents are replied Disagree while the least respondents are answer strongly disagree.

Figure 4.2.8

46
Table 4.2.9 knowledge management helps the organization to deal with changes in the
business environment
Frequency Percent Valid Percent Cumulative
Percent
Strongly agree 18 40.9 40.9 40.9
Agree 18 40.9 40.9 81.8
Valid disagree 5 11.4 11.4 93.2
strongly disagree 3 6.8 6.8 100.0
Total 44 100.0 100.0
Sources of primary data 2021
From the above table 4.2.9and below figure 4.2.9 are observed that of respondents Strongly agree
are 40.9% and respondents Agree were 40.9%. While respondents of Disagree are 11.4% and also
respondents strongly disagree were 6.8%. So that the most respondents are answer Strongly Agree,
and agree while the least number of respondents are answer strongly disagree
Figure 4.2.9

47
 Table 4.2.10 knowledge management drives strategy through organizational performance
Frequency Percent Valid Percent Cumulative
Percent
Strongly agree 8 18.2 18.2 18.2
agree 23 52.3 52.3 70.5
Valid disagree 3 6.8 6.8 77.3
strongly disagree 10 22.7 22.7 100.0
Total 44 100.0 100.0
Sources of primary data 2021
In this statement indicate The outcome in the above table 4.2.10 and figure below 4.2.10 are shows
that the respondents of Agree are 52.3% respondents Strongly disagree are 22.7% , while the
respondents of Strongly agree are 18.2% and also respondents of disagree were 6.8% so that the
greatest amount of respondents are replied Agree while the least respondents are answer Disagree.

Figure 4.2.10

48
 Table 4.2.11 successful organizations represent better outputs, economic growth and
customer satisfaction
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 29 65.9 65.9 65.9
Agree 10 22.7 22.7 88.6
Valid disagree 3 6.8 6.8 95.5
Strongly Disagree. 2 4.5 4.5 100.0
Total 44 100.0 100.0
Sources of primary data 2021
The result in the above table 4.2.11 and figure below 4.2.11 express that the respondent strongly
agree are 65.9%, while respondent agree are 27.7%, respondent disagree are 6.8% and also
strongly disagree were 4.5%. So that majority number of respondents are Strongly agree

Figure 4.2.11

49
 Table 4.2.12 Organizational performance focus planning, strategy, performance,
assessment, and organizational development
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 11 25.0 25.0 25.0
Agree 22 50.0 50.0 75.0
Valid disagree 8 18.2 18.2 93.2
strongly Disagree 3 6.8 6.8 100.0
Total 44 100.0 100.0
Sources of primary data 2021
The statement express from the above table 4.2.12 and below figure 4.2.12 the majority of
respondent Agree are 50%, while respondent strongly agree are 25%, respondent of disagree are
18.2% and also Strongly disagree were 6.8%. So that the majority number of respondents are
Agree.
Figure 4.2.12

50
 Table 4.2.13 Organizational performance is measured through efficiency and
effectiveness
Frequency Percent Valid Percent Cumulative
Percent
strongly Agree 21 47.7 47.7 47.7
Agree 8 18.2 18.2 65.9
Valid
disagree 15 34.1 34.1 100.0
Total 44 100.0 100.0
Sources of primary data 2021
The outcome from the above table 4.2.13 and below figure 4.2.13 are shows the respondent
strongly agree are 47.7%, while respondent disagree are 34.1%, respondent Agree are 18.2% . So
that the most number of respondents are strongly agree and the minority of respondents are
disagree
Figure 4.2.13

51
 Table 4.2.14 Organizational performance deals with effectiveness
Frequency Percent Valid Percent Cumulative
Percent
= strongly Agree 14 31.8 31.8 31.8
Agree 15 34.1 34.1 65.9
Valid disagree 14 31.8 31.8 97.7
strongly Disagree 1 2.3 2.3 100.0
Total 44 100.0 100.0
Sources of primary data 2021
The consequence in the above table 4.2.14 and figure below 4.2.14 express that the respondents
Agree are 34.1%, respondent Strongly agree are 31.8%, while respondent disagree are 31.8% and
also strongly disagree were 2.3%. So that the majority number of respondents are Disagree while
the minority of respondents are strongly agree.
Figure 4.2.14

52
 Table 4.2.15 Performance deals with organizational future plans and profitability

Frequency Percent Valid Percent Cumulative

Percent
strongly Agree 17 38.6 38.6 38.6
Agree 17 38.6 38.6 77.3
Valid disagree 6 13.6 13.6 90.9
strongly Disagree 4 9.1 9.1 100.0
Total 44 100.0 100.0
Sources of primary data 2021
The consequence in the above table 4.2.14 and figure below 4.2.14 express that the respondents
strongly agree are 38.6%, respondent agree are 38.6%, while respondent disagree are 13.6% and
also strongly disagree were 9.1%. So that the majority number of respondents are strongly agree
,Agree while the minority of respondents are strongly disagree
Figure 4.2.15

53
 CHAPTER FIVE:
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.0 INTRODUCTION

This chapter presented the findings, conclusion and recommendations of the study. The first
section 5.1 presents findings of the research project, the second section 5.2 presents the conclusions
of the researcher, and the third section 5.3 suggests recommendations.

5.1 MAJOR FINDINGS OF THE STUDY

This portion discusses the results of analysis in above section. It highlights objectives of the study
and the findings.

5.1.1 OBJECTIVE ONE CUSTOMER RELATIONSHIP MANAGEMENT

The results analysis of the respondents the question” Customer Relationship Management can
helps the managers to know easily the profit of the business'' the answer the majority of respondents

Are (54.5%) of respondents strong agree and (22.7%) disagree while (15.9%) are agree and also
(6.8%) are strong disagree are , so that the most respondents are respond strong agree while the
least respondents are replied strongly disagree
.” Customer orientation increases the profitability of an organization” In this statement indicates
that the researcher wants to know that It is not receiving the attention it deserves The result shows
(63.6%) are agreed and (27.3%) was strong agreed and (6.8%) respondents answered disagreed
and (2.3%) are strong disagree, so that most respondents respond Agree
The asked of respondents “Customer orientation is used for customers at the center of strategic
focus” the respondents are replied (36.4%) are Agreed and (27.3 %) of respondents was Strong
agree and (25%) was answered disagree and also (11.4 %) was answer Strong disagree, so that the
most respondents respond Agree.
They asked respondents “Profitable growth are achieved through Customer orientation” The result
shows that the respondents (31.8%) of respondents was agreed and (22.7%) was disagreed and
(31.4%) was answered strongly agree and also (13.%) answered was answered strongly disagreed
so that most respondents respond agreed and strongly agree

54
The relationship between client and the management, if successful will have a positive impact on
organizational production

5.1.2 OBJECTIVE TWO ORGANIZATIONAL PERFOMANCE

The study found the question” knowledge plays a dominant role in our daily lives and in the
business world” the answer Most of respondents Strongly agree are 79.5% , next respondents are
agree were 15.9% , while the minority of respondents are Disagree 2.3%,and also Strongly agree
are 2.3% , so that the most respondents are answer Strongly agree while the least respondents are
replied Disagree, strongly disagree
The result of question '' Knowledge is an asset of the organization” the answer of respondents of
respondents Agree 63.6% and strongly agree are 25%,While respondents of Disagree are 6.8% and
also respondents strongly disagree were 4.5%. So that the majority respondents are answer Agree,
while the minority of respondents are respond strongly disagree
The outcome of question '' Knowledge plays a central role in the differential competitive advantage
of organizations” the answer of respondents of respondents Disagree are 31.8% , next respondents
Agree are 34.1% , and the respondent of Strongly agree are 27.3%,and the minority of respondent
6.8% of Strongly agree so that the most respondents are replied Disagree while the least
respondents are answer strongly disagree.
The results of respondents question '' knowledge management helps the organization to deal with
changes in the business environment” The answer of respondents are respondents of Strongly
agree are 40.9% and respondents Agree were 40.9%. While respondents of Disagree are 11.4%
and also respondents strongly disagree were 6.8%. So that the most respondents are answer
Strongly Agree, and agree while the least number of respondents are answer strongly disagree

The production organization depends on the relationship between the customer and the
management.

55
5.1.3 OBJECTIVE THREE CUSTOMER RELATIONSHIP MANAGEMENT AND
ORGANIZATIONAL PERFOMANCE

The asked of respondents” successful organizations represent better outputs, economic growth and
customer satisfaction” the respondent strongly agree are 65.9%, while respondent agree are 27.7%,
respondent disagree are 6.8% and also strongly disagree were 4.5%. So that majority number of
respondents are Strongly agree

The results analysis the question '' Organizational performance focus planning, strategy,
performance, assessment, and organizational development” respondents of agree are 50%, while
respondent strongly agree are 25%, and also Disagree were 18.2%. respondent strongly disagree
are 6.8%,
The outcome of question '' Organizational performance is measured through efficiency and
effectiveness” the replied of respondent the respondent strongly agree are 47.7%, and respondent
Disagree are 34.1% while respondent agree are 18.2%,. So that the greatest number of respondents
are strongly agree and the minority of respondents are disagreed
The results found the statement '' Performance deals with organizational future plans and
profitability” the replied of respondent the that the respondents strongly agree are 38.%, respondent
agree are 38.%, while respondent disagree are 13.6% and also strongly disagree were 9.1%. So
that the majority number of respondents are strongly agree while the minority of respondents are
strongly disagreeing
If there is a good relationship the productivity of the organization and managers, they will increase
the performance of organization and customer satisfaction

5.2 CONCLUSION
This study was examining the Role of Customer relationship management and Organizational
performances to look at the target population of this study was staff and management at some
selected company of Bosaso, the instrument used in this study was questionnaire.

The study found that the Role of Customer relationship management have overall mean (24) while
the study explained that the level of Organizational performance have overall mean (20)Thus, this
also indicates a positive or a very good sign

56
The result of question '' Knowledge is an asset of the organization” the answer of respondents of
respondents Agree 63.6% and strongly agree are 25%,While respondents of Disagree are 6.8% and
also respondents strongly disagree were 4.5%. So that the majority respondents are answer Agree,
while the minority of respondents are respond strongly disagree
The outcome of question '' Knowledge plays a central role in the differential competitive
advantage of organizations” the answer of respondents of respondents Disagree are 31.8% , next
respondents Agree are 34.1% , and the respondent of Strongly agree are 27.3%,and the minority
of respondent 6.8% of Strongly agree so that the most respondents are replied Disagree while the
least respondents are answer strongly disagree.
The results of respondents question '' knowledge management helps the organization to deal with
changes in the business environment” The answer of respondents are respondents of Strongly
agree are 40.9% and respondents Agree were 40.9%. While respondents of Disagree are 11.4%
and also respondents strongly disagree were 6.8%. So that the most respondents are answer
Strongly Agree, and agree while the least number of respondents are answer strongly disagree

5.3 RECOMMENDATION
1. In order to increase organizational performance we should create a lot of Customer relationship

2. I recommend that the relationship between the customer and the management of the organization
be improved by increasing the revenue of the organization

3. Customer Relationship management is primary factor that is necessary to Organization

4. The researcher recommended customer orientation should be accountable to their employee

5.4 Further Studies
• Customer relationship management and organizational productivity.
• Customer relationship management and Customer Retention.
• Customer relationship management and Customer Satisfaction
.

57
 REFERENCES

Alt, R., Puschmann, T. (2004) Successful Practices in Customer Relationship Management, 37th
Hawaii International Conference on System Science, pp. 1-9
AMR Research (2002) The CRM Application Spending Report, 2002- 2004, available online at
http://www.amrresearch.com/Content/view.asp? pmillid=10494&docid=9398
Chatham, B., Orlov, L. M., Howard, E., Worthen, B., Coutts, A. (2000) The Customer
Conversation. Cambridge: Forrester Research, Inc.
Davids, M. (1999) How to Avoid the 10 Biggest Mistakes in CRM, Journal of Business Strategy,
Nov./Dec., 22-26
Fingar, P., Kumar, H., Sharma, T. (2000) Enterprise E-Commerce: The Software Component
Breakthrough for Business-to-Business Commerce. Tampa: Meghan-Kiffer Press
Forsyth, R. (2001) Six Major Impediments to Change and How to Overcome Them in CRM in
2001, Tech. Rep., 2001. Available from http://www.crmguru.com
Gartner survey (2002) CRM in 2002: Redesign from the customer perspective. San Jose (CA):
Gartner Group, 2001
Jancic, Z., Zabkar, V. (2002) Interpersonal vs. Personal Exchanges in Marketing Relationships,
Journal of Marketing Management, 18, pp. 657- 671
King, S-F., Burgess, T-F. (2008) Understanding Success and Failure in Customer Relationship
Management, Industrial Marketing Management, 37(2008), pp. 421-431
Lindergreen, A., Palmer, R., Vanhamme, J., Wouters, J. (2006) A Relationship-Management
Assessment Tool: Questioning, Identifying, and Prioritizing Critical Aspects of Customer
Relationships, Industrial Marketing Management, 35(1), pp. 51-71
Mendoza, L-E., Marius, A., Perez, M., Griman, A-C. (2007) Critical Success Factors for a
Customer Relationship Management Strategy, Information and Software Technology, 49(2007),
pp. 913 -945 Grönroos, C. (1994) From Marketing Mix to
Relationship Marketing: Towards a Paradigm Shift in Marketing, Management Decision, Vol. 32,
No. 2, pp. 4-20
Ptak, C. A., Scharagenheim, E. (1999) ERP: Tools, Techniques, and Applications for Integrating
the Supply Chain, CRC Press-St. Lucie Press

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Reckham, N. (1999) Rethinking the Sales Force: Redefining Selling to Create and Capture
Customer Value. New York: McGraw-Hill
Rigby, D. K., Reichheld, F. F., Schefter, P. (2002) Avoid the Four Perils of CRM, Harvard
Business Review, 80(2), pp. 101-109
Sheth, J. N., Sisodia, R. S., Sharma, R. S. (2000) The Antecedents and Consequences of Customer-
Centric Marketing, Journal of the Academy of Marketing Science, 28(1), pp. 55-66
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Szeghegyi, Á. Langanke, U-H (2007) Investigation of the Possibilities for Interdisciplinary Co-
Operation by the Use of Knowledge-based Systems, Acta Polytechnica Hungarica,
4(2), pp. 63-76
Thompson, E. (2001) CRM is in its Infancy in Europe. San Jose (CA): Gartner Group, 2001
Verhoef, P. C., Langerak, F. (2002) Eleven Misconceptions about Customer Relationship
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APPENDIX II: TIME FRAME
Every activity or project should follow pre-planned time frame and the researcher accomplish his
activities in accordance with the following time frame:
S/N TIME DESCRIPTION QUANTITY UNIT COST TOTAL COST

1 Printing with color 19 Pages $0.15 $3

2 Printing without color 50 pages $0.05 $3

3 Questionnaire printing 44 copies 4pages $0.05 $8.8

4 Transport 8Times $1 $8

5 Internet 5Times $3 $15

6 Fees $80 $80

Total $ 117.8

I
APPENDIX IV: QUESTIONNAIRES
Dear Sir/Madam, kindly help to fill this questionnaire guide. The purpose of this guide is to collect
data about the Customer relationship management and Organizational performance
companies in Bosaso
The purpose of this questionnaire is to something your views on the above topic. You are kindly request
to assist in answering the questions below. Fill in the space or put a tick where appropriate
Instruction

➢ Don‟t need to write your name in this questionnaire.

➢ This research is for academic purpose and not need for other purpose.
➢ Please fill the space provide to the best of your knowledge and your own idea.

Section (A): BACKGROUND INFORMAION ABOUT THE RESPONDENT

Please tick (√) in the provided space below.

1.Gender

(1). Male. (2) Female.

2. Martial status

(1). Single. (2). Married. (3). Divorced. (4). Widowed.

3. Age

(1). 15-25yrs. (2) 26- 35yrs. (3) 36-45yrs. (4) 45 and above yrs.

4. Highest Educational Level

(1). Diploma. (2) Degree. (3) Master. (4) PhD. (5) Others.

5. Number of years in working experience

II
(1). below one year. (2). 1 – 2years. (3) 3 – 4 years. (4) 5 – 6years. (5)
7 year and above.

Section (B):. The role of Customer orientation on organizational performance

Please write your ability knowledge and skills on the fallowing items by ticking the number

Corresponding with each item. = keys 1= strongly Agree. 2= Agree. 3= disagree. And 4=strongly
Disagree

N The role of Customer orientation on organizational performance. 1 2 3 4

1 Market orientation is the which contributes the success and performance of a

firm
2 .Customer orientation increases the profitability of an organization

3 Customer orientation is used for customers at the center of strategic focus

4 Profitable growth are achieved through Customer orientation

Customer orientation encompasses the analysis of customers’ needs

Section (C): knowledge management on organizational performance

Please select the appropriate answer by placing tick (√) on the fallowing items by ticking the
number corresponding with each item. = keys 1= strongly Agree. 2= Agree. 3= disagree. And 4=
strongly Disagree

III
 SN knowledge management on organizational performance 1 2 3 4

1 knowledge plays a dominant role in our daily lives and in the business world

2 .

Knowledge is an asset of the organization

3 Knowledge plays a central role in the differential competitive advantage of
organizations
.

4 knowledge management helps the organization to deal with changes in the

business environment

5 knowledge management drives strategy through organizational performance

Section (D) RELATIONSHIP OF CUSTOMER RELATIONSHIP MANAGEMENT AND

ORGANIZATIONAL PERFOMANCE

Please select the appropriate answer by placing tick (√) on the fallowing items = keys 1= strongly
Agree. 2= Agree. 3= disagree. And 4= strongly Disagree.

SN CUSTOMER RELATIONSHIP MANAGEMENT AND 1 2 3 4

ORGANIZATIONAL PERFOMANCE

IV
1 successful organizations represent better outputs, economic growth and
customer satisfaction
2 Organizational performance focus planning, strategy, performance,
assessment, and organizational development

Organizational performance is measured through efficiency and

effectiveness
4 Organizational performance deals with effectiveness

5 Performance deals with organizational future plans and profitability

V
VI