The value proposition of adopting mCRM strategy in UK SMEs Vanessa Zheng School of Management, University of Surrey, Guildford, UK Abstract Purpose – This paper seeks to investigate the key drivers and barriers of adopting mobile customer relationship management (mCRM) services in small- and medium-sized enterprises (SMEs) and proposes an mCRM strategy framework. Design/methodology/approach – Previous SME technology adoption literature has used different models to explain how SMEs accept or reject technology innovations. There is a lack of research in mobile technologies such as mCRM services. Using a secondary research method, this study critically analyses the impact of mCRM services adoption by UK SMEs. Findings – Rapid development in mCRM applications enables SMEs to gain competitive advantages. This paper argues that mCRM services help SMEs to create different levels of relationship bonds with their customers, which in turn can create value proposition and improve business performance. Research limitations/implications – This study suggests that SME owners/managers need to understand their business needs and processes, and the mobile technology, to focus on their CRM strategies, and allocate resources in order to successfully adopt mCRM services to exploit the full potential. The conceptual model needs to be tested empirically. Originality/value – This study demonstrates that business values and core services can be specific to mCRM strategy. It proposes and discusses the theoretical and practical implications of the mCRM strategy framework and suggests further research directions. Keywords Small to medium-sized enterprises, Customer relations, Communication technologies Paper type Conceptual paper Introduction and rationale The increasing use of mobile phones in the last five years by UK consumers has provided a valuable “mobile segment” with potentially huge market opportunities for businesses. Mobile Data Association (2010) reported the continued growth of messaging in the UK, with a total of 96.8 billion text messages and 601 million picture messages sent by the UK consumer by December 2009, which is 9 per cent growth in comparison to same the period by December 2008. With mobile channel capabilities, businesses can extend their services geographically and technologically (Augst and Wilson, 2005). The mobility of mobile channels and accuracy of the real time information increases the effectiveness of marketing campaigns. IFPI (2006) reported that the mobile channel is ten times more effective than the web channel. Mobile solutions have a positive impact by providing better remote access, more efficient provision of up-to-date information and improved ability of sales The current issue and full text archive of this journal is available at www.emeraldinsight.com/1328-7265.htm The author would like to thank Dr Paul Jones in helping to improve the quality of the paper by providing feedback and comments. mCRM strategy in UK SMEs 223 Journal of Systems and Information Technology Vol. 13 No. 2, 2011 pp. 223-245 q Emerald Group Publishing Limited 1328-7265 DOI 10.1108/13287261111136025
Transcript
The value propositionof adopting mCRM strategy
in UK SMEsVanessa Zheng
School of Management, University of Surrey,Guildford, UK
Abstract
Purpose – This paper seeks to investigate the key drivers and barriers of adopting mobile customerrelationship management (mCRM) services in small- and medium-sized enterprises (SMEs) andproposes an mCRM strategy framework.
Design/methodology/approach – Previous SME technology adoption literature has used differentmodels to explain how SMEs accept or reject technology innovations. There is a lack of research inmobile technologies such as mCRM services. Using a secondary research method, this study criticallyanalyses the impact of mCRM services adoption by UK SMEs.
Findings – Rapid development in mCRM applications enables SMEs to gain competitive advantages.This paper argues that mCRM services help SMEs to create different levels of relationship bonds withtheir customers, which in turn can create value proposition and improve business performance.
Research limitations/implications – This study suggests that SME owners/managers need tounderstand their business needs and processes, and the mobile technology, to focus on their CRMstrategies, and allocate resources in order to successfully adopt mCRM services to exploit the fullpotential. The conceptual model needs to be tested empirically.
Originality/value – This study demonstrates that business values and core services can be specific tomCRM strategy. It proposes and discusses the theoretical and practical implications of the mCRMstrategy framework and suggests further research directions.
Keywords Small to medium-sized enterprises, Customer relations, Communication technologies
Paper type Conceptual paper
Introduction and rationaleThe increasing use of mobile phones in the last five years by UK consumers has provideda valuable “mobile segment” with potentially huge market opportunities for businesses.Mobile Data Association (2010) reported the continued growth of messaging in the UK,with a total of 96.8 billion text messages and 601 million picture messages sent by the UKconsumer by December 2009, which is 9 per cent growth in comparison to same theperiod by December 2008. With mobile channel capabilities, businesses can extend theirservices geographically and technologically (Augst and Wilson, 2005). The mobility ofmobile channels and accuracy of the real time information increases the effectiveness ofmarketing campaigns. IFPI (2006) reported that the mobile channel is ten times moreeffective than the web channel.
Mobile solutions have a positive impact by providing better remote access,more efficient provision of up-to-date information and improved ability of sales
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1328-7265.htm
The author would like to thank Dr Paul Jones in helping to improve the quality of the paper byproviding feedback and comments.
mCRM strategyin UK SMEs
223
Journal of Systems and InformationTechnology
Vol. 13 No. 2, 2011pp. 223-245
q Emerald Group Publishing Limited1328-7265
DOI 10.1108/13287261111136025
and marketing communications (Scarnavacca and Barnes, 2008). Mobile mediaoffers benefits such as location-specific information, personalisation, immediacy(Muller-Veerse et al., 2001). Whilst there is no structured method for designing mCRMsolutions (Schierholz et al., 2007), businesses must re-examine their business processesin order to capture the value and utilise the full potential of mobile channel capability.Therefore, this study intends to address this problem and propose a conceptualframework (mCRM strategy framework) to give best practice guidance to small- andmedium-sized enterprises (SMEs) adopting mCRM services.
The definition of mobile customer relationship management (mCRM) refers to the useof mobile devices to extend current CRM systems or transactions (Muller-Veerse et al.,2001), or to finish or improve existing CRM services (Valsecchi et al., 2007).Schierholz et al. (2007) describe mCRM functions as: mobile marketing, mobile salesforce automation, mobile field service or mobile customer services. mCRM services canmaximise mobile channel potential for SMEs to enhance services and increase mobilecommerce activities. SMEs can integrate mCRM services into their business process byencouraging customers to join their loyalty programme, deliver free newsletters, providerelevant, customised products and service details, bonus points, or provide couponsafter they join (Scharl et al., 2004).
In this study, we define mCRM services as the activities of a business usingmobile channels to improve customer relationships and CRM. mCRM services canbe categorised based on their functionality, such as mobile commerce or m-tailing,mobile payment, mobile advertising, mobile location based, mobile ticketing and mobilecoupon. mCRM focus on enhancing customer experience by improving service quality,increasing customer satisfaction and thus encouraging repeat m-tailing activities(Zheng et al., 2009). It can be explained by examining four types of mCRM functions:informative, interactive, promotional and transactional:
(1) Informative function. Businesses collect and store information such ascustomer profile, location and buying preferences, so they can use theknowledge to provide relevant and highly targeted products or services. Typicalactivities include appointment reminders or mortgage application updates.
(2) Interactive function. Businesses encourage customers to react or respond to atimely or instant offer or information, or even participate in their commercialprogramme. Typical activities include mobile voting for reality TV programmes,mobile communities, or clicking to respond to mobile adverts for free downloads.
(3) Promotional function. Businesses use mobile channels as sales andpromotional tools for branding, latest sales offers or discounts. Typicalactivities are mobile marketing campaigns, using short codes such as “textto win.”
(4) Transactional function. This means that the mobile phone acts a paymentmerchant to enable a monetary transaction to take place. Typical activities aremobile car parking payment, mobile vending machine payment or paying fortrain or bus fare.
mCRM services can be delivered through mobile applications such as: Short MessagingServices (SMS), Multimedia Messaging Services (MMS), Mobile Internet or Portal,Mobile E-mail, Mobile TV, Mobile Search Engine, Mobile Location-Based Services,
JSIT13,2
224
mobile ticketing and mobile payment. SMS is very popular in the UK due toits simplicity, low cost and wide coverage. In fact, sending an SMS costs lessthan traditional direct mail. MMS allows more sophisticated mobile content such asattachments with pictures, sounds and video clips, while mobile coupons can be storedin the phone, redeemable at the point of sale. The mobile ticketing technologies allowairline companies such as Lufthansa to develop a concept called “Check-in evolution,”enabling passengers to use their phone to book their seats and check in prior to departure(Muller-Veerse et al., 2001). Nowadays, mobile phones come with large colour displays,java capability and multi-media functionality to enable more sophisticated mobilecontent. Global brands now use mobile internet to promote latest fashions and can buildmobile communities using mobile Location Based Services to enable customers to findthe nearest retail shops whilst travelling.
Literature analysisThe adoption of mobile technology by SMEs in the UKThe UK 3G mobile license acquisition allowed rapid development in mobiletechnologies. As mCRM applications can significantly benefit SMEs in improvingtheir business processes, innovate new products and services with faster speed ofservice delivery without requiring significant modifications to these processes or majorinvestment; it is considered to be particularly suitable for SMEs (Balocco et al., 2009).However, the research in this area is limited (Balocco et al., 2009). There is a lack ofliterature in business mobile research promoting guidance to SMEs on how they shouldstrategically adopt mobile technologies to improve business performance. Thedecisions about whether SMEs choose to adopt mobile technology may vary across theSME sector depending on their general marketing strategy and market position(Muller-Lankenau et al., 2005). SMEs need to understand the issues and challenges ofhow to integrate mobile channels in their business processes, in order to adopt mobiletechnologies successfully.
SMEs are enterprises that have less than 250 employees across all sectors, includingmicro enterprises with less than ten (Martin and Matlay, 2001). UK SMEs vary in size,economic activity, geographic position, resource availability and informationcommunications technology (ICT) adoption stages, and research results cannot beeasily generalised across all industry. UK SMEs experienced significant growth in the1980s; SMEs accounted for 25 per cent of the total workforce and about 20 per cent of grossnational product by 1989 (Lee, 1991). SMEs employ almost ten million employees,accounting for 30 per cent of the UK workforce and have a collective turnover worth40 per cent of the UK economy (Prospect Directory, 2008/2009). As SMEs are a rapidlygrowing force in the UK economy, the impact of how SMEs can more effectively adoptmodern technology becomes important to both researchers and practitioners. Lee (1991)suggests that particular attention needs to be paid to both the micro and macro levels ofanalysis.
Although SMEs are becoming increasingly technologically centric in conductingtheir business and production process, the vast majority of SMEs does not use CRMapplications (Maguire et al., 2007). The development of mobile solutions has been limitedby and is dependent on, the performance of mobile networks and bandwidth availability(Scornsavacca and Barnes, 2008). This affects the business adoption as businesses eitherdo not trust the technology or are not aware of potential benefits. Jeffcoate et al. (2002)
mCRM strategyin UK SMEs
225
note that many SMEs fail to exploit the internet potential effectively because there islittle information, tailored to their circumstances, to help them do so. Lin et al. (2007)found that most of the SMEs use technology in operating their businesses, but wereunable to create value. Scornavacca et al. (2004) are critical of the majority of academics,who approach m-business research from a consumer viewpoint; the authors address theneed for research into mobile business and organisational applications, stressing theneed for theory development in this field to assist research in this area to gain a solidtheoretical foundation.
This research aims to address these issues, fill the gaps in literature, seek tounderstand the factors that influence the mCRM services adoption by SMEs and identifythe issues and challenges for SMEs when adopting mCRM services. First, this study willlook into the issues and challenges that SMEs experienced in adopting ICT technology,review the previous SME’s ICT adoption models, discuss the impact of mCRM servicesadoption on SMEs and propose how the mCRM strategies framework may impact onSMEs business performance.
The ICT adoption models in SMEsTechnological innovation is crucial for SMEs to gain competitive strength (Stroeken,2001) and has played a key role in facilitating communications; problem solving andknowledge culture (Marasini et al., 2008). Despite the fact that 1.9 million UK smallbusinesses were connected to the internet in 2003, the e-business adoption by UKSMEs is relatively undeveloped (Pavic et al., 2007) and limited to communication andinformation collection instead of making transactions online. SMEs’ technologicalinnovation can be problematic due to different contextual deficiencies that relate to theirbusiness environment and the owner or manager’s individual factors (Al-Qirim, 2007).Personal competence and the attitude of the owner/manager (Hannon and Atherton,1998) influence the strategic issue. With the lack of awareness of the potential of ICTsolutions (Marasini et al., 2008), limited resources and a lack of IT expertise, SMEs facesignificant challenges in technology adoption (Marasini et al., 2008), in comparison tobigger companies. SMEs have relatively short-term planning horizons, as they generallydo not utilise ICT fully in their adoption (Maguire et al., 2007). Pavic et al. (2007) notedthat SMEs face considerable difficulties and problems in understanding and applyingmarketing concepts and techniques (O’Brien, 1998), promotion and market research(Huang and Brown, 1999) and poor management and marketing skills (Freel, 2000), all ofwhich became a barrier to promoting technological innovation.
Since the 1990s, more researchers have focused on studying SME’s technologyadoption and some of them proposed various models to address issues and providesolutions. Based on previous literature in technology adoption in SMEs, we categorisethree different types of technology adoption models, namely, user attitude models,stage models and organisational context models.
User attitude models. This group of theories investigates the user intentionperspectives and how the user attitude influences the choice of adopting or rejecting atechnology. Examples include the diffusion innovation theory (Rogers, 1995), theory ofreasoned action (Fieshbein and Ajzen, 1975), technology acceptance model (TAM; Davis,1989), “Theory of planned behaviour” (TPB ; Ajzen, 1991), social cognitive theory(Bandura, 2001) and the unified theory of acceptance and use of technology (Venkateshet al., 2003). Some of these theories have been tested in numerous studies that
JSIT13,2
226
emphasised the user’s intention to adopt or to use a specific information technology(Sutanonpaiboon and Pearson, 2006). Internal characteristics of the user are the mainfocus of the study, and the factors concerning a firm and its complex marketenvironment were not measured. SMEs are surrounded in a complex marketenvironment, their decisions on adopting mCRM services could be a response to thechanging market environment; TAM and TPB are inadequate on their own, becausethey oversimplify complex social processes into discrete constructs (Parker andCastleman, 2009), using these models provides narrow focus on the user instead of thecontext (Riemenschneider et al., 2003). Therefore, these models are consideredinappropriate for our study.
Stage models. This group of models includes the IT growth-phase model (Nolan, 1973),a three hierarchical stages of e-commerce adoption by SMEs (Poon and Swatman, 1997);an e-adoption ladder model in 2001 (DTI, 2001). Stroeken (2001) argued that the adoptionand acceptance of IT in SMEs have to be analysed from a broader perspective within theSMEs context. He proposed a five-level model from a clearly strategic perspective. Levyand Powell (2003), developed a transporter model based on the DTI e-adoption ladder.They suggested that the owner’s attitude to growth decides the e-business adoption.Pavic et al. (2007), developed a CATE-b prototype of e-business integration model as anadaptable solution. The model combined all these concepts to reflect the e-businessintegration stage. These stage models intend to generalise the way SMEs adopt and utilisee-business technology across all sectors. Al-Qirim (2007) argued that SMEs are unlikely tofollow a stages model, because SMEs would rather focus on the owner’s strategy forgrowth. Muller-Lankenau et al. (2005) noted that decisions about whether a firm chooses toadopt the technology may vary across the SME sector depending on their generalmarketing strategy and market position. The decisions on adopting mCRM services in UKSMEs may vary across different industries in order to fit with SMEs owner’s strategicintent or business vision for growth; therefore, stages models are considered unsuitable.
Martin and Matlay (2001) identified issues about the research in ICT adoption by UKSMEs and pointed out that more research is required on the complexity of specific needs,strategies, ideas and core capabilities of SMEs in relation to ICT. They recommended anapproach focused on factors such as, the firm’s size, age, managerial structure, andinformation and communications technology adoption. They noted that it is important tosee SMEs as a diverse collection of individuals and/or groups at various stages of ICTawareness. Their needs for support and advice, and their needs for ICT differ, which isparticularly true in the case of SMEs adopting mCRM services. In order to adoptmobile technologies successfully, SMEs need to understand the issues and challengesof adoption and how to integrate mobile channels in their business process.Therefore, this study considers the adoption of mCRM in SMEs will likely followthe technology-organisation-environment (TEO) framework, which examines theorganisation and its internal and external environment and how these factors influenceSMEs accepting or rejecting the technology. The TEO framework focuses on examininghow business adopts technology within the market and industry, they operate. The owneror manager’s characteristics or leadership style is also taken into account.
TEO framework. Kuan and Chau (2001) suggested a TEO framework based on thework by Iacovou et al. (1995). The technological context refers to perceived technologicalbenefits, the organisational context refers to perceived organisational resources
mCRM strategyin UK SMEs
227
and the environmental context refers to perceived environmental pressures. Thisframework is shown in Figure 1.
Chen and Ching (2002) suggested that the organisation needs to first change itsstrategy and technology from which the structure, management process, individualsand roles will be determined according to the resources available for the e-businessadoption. Fillis et al. (2004) suggested a conceptual model that consists of internal andexternal factors that influence attitudes towards the adoption of e-business and as partof the company’s business strategy. They identified factors including macro-factors,industry/sectoral factors and firm/managerial factors.
Factors influencing SMEs decision in adopting mobile technologiesStroeken (2001) suggested that mobile applications bring improvement in the wayinformation flows within the organisation and that it changes the relationship betweenthe organisation and their stakeholders by enhancing the efficiency of the organisation.mCRM services can maximise mobile channel potential for SMEs to enhance servicesand increase mobile commerce activities (Zheng et al., 2009), which offers huge businessopportunities when instant product and price information is required for impulsepurchases; shopping alerts, discount notifications and m-coupons complement suchservices (Muller-Veerse et al., 2001). SMEs can integrate mCRM services into theirbusiness process by encouraging customers to join their loyalty programme, deliver freenewsletters, provide relevant and customised product and service details, bonus points,or provide coupons after they join (Scharl et al., 2004).
However, successful adoption of mobile technology in SMEs could be achallenge. To develop the most appropriate theoretical framework to explain howSMEs successfully adopt mCRM services, this study examines key factors that influencethe SMEs decision to accept or reject technology from 35 key pieces of literature in SMEsICT and e-business adoption. The findings can be summarised in Table AII (Appendix),from which, key factors are summarised in Table I.
We identified seven groups of clusters that consist of several factors that contribute toinfluencing the SMEs’ technology adoption decision. These are strategy context,technological context, environmental context, sectoral context, organisational contextand barriers of adoption. To some extent, these factors should reflect how SMEs mightchoose to adopt or reject mobile technology. Two key areas are investigated in explainingwhy SMEs may choose to adopt or reject mCRM services. This study will show both
Perceived industry pressurePerceived government pressure
EDI adoption
Source: Kuan and Chau (2001), reproduced by kind permission of Elsevier
JSIT13,2
228
the factors that influence the decision by SMEs to adopt mCRM services and the barrierspreventing adoption.
1. Factors influence the adoption decision.Strategy context. The successful implementation of IT innovation not only requires
adaptation of the organisation, but also sufficient strategic vision (Stroeken, 2001).Premkumar and Roberts (1999) believe that SMEs need to be constantly occupied withmarket signals and their innovation strategy must be closely aligned to their marketstrategy to succeed. Sadowski et al. (2002) noted that most SMEs adopt the internet if itfits their particular communication needs, which are rooted in a variety of companystructures and their business strategy. Three strategy factors are important: marketingstrategy, competitive positioning and communication requirement strategy.
Technological context. The characteristics of the technology that influence a firm’sadoption decision may include relative advantages of mobile technologies, compatibilityof the technology with the firm’s current CRM systems, complexity of the system andaffordability (cost).
External environment context. The external environment, including the strategicchoice of the firm (Lefebvre et al., 1997) plays a significant role in the adoption ofcommunications technology (Premkumar and Roberts, 1999). In the UK, governmentpolicy emphasises economic competitiveness, which influences SMEs to take up a widerange of new technologies (Southern and Tilley, 2000). Misread or misinterpretedenvironments will result in failure of implementation of technology and even affect theoverall performance or possible survival of the firm (Lefebvre et al., 1997). Several key
Technological Relative advantage or perceived benefitsCostCompatibility
Environmental Competitive pressureExternal industrial pressureExternal support from technical vendorGovernment pressure
Sectoral SizeIndustry sectorType of customer or market
Organisational Financial resourcesTechnical resourcesInformation and communication technology adoption stageLevel of sophistication of IT usage and IT management in organisations
Managerial CEO characteristic/innovativenessAwareness or perception of benefitsTop management support/commitment
Barrier of adoption Lack of resourcesLack of IT skillsUnaware of the benefits
Table I.Key factors influencing
SME’s adoption ofICT/e-business
technology
mCRM strategyin UK SMEs
229
factors are considered important: competitive pressure, external industrial pressure,external support from technical vendor and government pressure.
Sectoral characteristics. SMEs consist of different firm sizes (e.g. micro enterprise fromzero to ten and small enterprises from 11 to 249), various industry sectors (e.g. financial,tourism and training, etc.) and the type of customers they serve (e.g. B2B or B2C). Thediversity and variety of SMEs need to be taken into consideration when examining howthey integrate their service delivery and business process when adopting mCRM services.Three key factors are found important: size, industry sector and type of customer or market.
Organisational context. The organisational context consists of factors thatdepend on the internal environment of the organisation. Several key factors include:financial and technical resources, people with IT skills and expertise, or information andcommunication technology adoption stage, level of sophistication of IT usage and ITmanagement in organisations.
The decision to adopt mCRM services by SMEs is not primarily based on thecharacteristics of the technology itself (Kuan and Chau, 2001), it is also dependenton several other factors. Owing to the nature of SMEs, managerial characteristics areconsidered significant in the decision to adopt or reject mCRM services.
Managerial characteristics. The top management’s vision and commitmentto innovation are essential in small businesses (Premkumar and Roberts, 1999). Theirperception of ICT benefits appears to be crucial to the successful adoption anddevelopment of new ICT technology, particularly at the initial stage (Balocco et al., 2009).It also determines the different innovative attitudes of small firms, albeit based on thedevelopment of particular competencies (Rizzoni, 1991). Three key factors are identified:CEO characteristic/innovativeness, awareness or perception of benefits and topmanagement support/commitment.
2. Barriers to adoption. By examining 35 prior studies in SMEs from 1999 to 2009, threemain barriers to the adoption of technology in SMEs were apparent, namely as (Appendix,Table AI): a lack of technical expertise for SMEs owner/manager to understand theopportunities and evaluate the risk, a lack of financial resources and a lack of other resourcesincluding technical and human resources for the SMEs to adopt and implement technology(Jones et al., 2003).
Relationship between CRM strategy levels and mCRM services adoption. Adoptedfrom relationship bonds model framework (Berry and Prasuraman 2006, cited inZeithaml et al., 2009), Zheng and Longbottom (2009) suggested the mCRM applicationscan be integrated into service firm’s current CRM strategies framework based on theirCRM objectives.
mCRM services can be integrated depending on the type of relationships that thebusiness seeks to develop with their customers, and the mCRM capabilities can fit arounddifferent levels. Adopted from CRM relationship bond framework, four levels of relationshipbond can be developed when SMEs adopt mCRM service. Figure 2 shows the different typesof mobile CRM services that will fit into the four levels of relationships bond.
Level 1: financial bonds. SMEs can use mCRM services such as mobile coupons tooffer incentives by integrating mCRM services into their loyalty programme to raisebrand awareness and increase sales. Cross-selling opportunities to promote a positivebrand image can be created to generate sales revenue by launching a mobile campaign,such as text2win, mobile free vouchers, etc. Hence, financial bonds can be developedbetween the business and their customers.
JSIT13,2
230
Level 2: social bonds. The growing mobile phone usage in recent years has created a“Mobile segment.” These consumers only have mobile phones and no landline in thehome. Mobile channels will be very important for organisations to create social bondswith their “mobile segment” customers. Mobile communities can be nurtured to promotea viral effect through word of mouth from their loyal customer base. Social bonds can bedeveloped using mobile applications such as Facebook, Twitter, LinkedIn to increase thestickiness of the brand and target “mobile segments” to cross-sell products andencourage customer referral and mobile viral effects (e.g. mobile chat, forum).
Level 3: customisation bonds. mCRM applications can be used to customise productsor services to meet the customer’s preference, e.g. location based services can be used totarget customers according to the store location. mCRM database can provideinformation about the customer’s preference and purchase behaviour, which in turn willenable shop owners to promote relevant products or information to meet theircustomer’s needs, location and time (e.g. find the nearest stores or hotels). When theinformation is relevant and useful, it will add attractiveness to a brand and create valueto the customers. Cinemas can send free video clips of the latest films, publishingcompanies can offer full download of digital books and passengers can reserve anddownload e-tickets from an airline company.
Level 4: structural bonds. Multiple channel strategies can be used to increase speed ofthe process, allow immediate access and increase efficiency and productivity for themobile brand, therefore, creating an innovative and convenient shopping experience forcustomers. Structural bonds require organisational process change to offer products andservices to be delivered via the mobile channel. According to the mCRM strategiesmodel, mCRM applications can be either partially or fully integrated to SMEs’ currentCRM systems. For example, SMEs can send an SMS text alert or enable travellers tosearch for flights, and even book their hotel on their way to the airport. Fully integratedmCRM systems require more financial and human resources, time and external supportfrom suppliers, and therefore, a value proposition goal must be clearly understood toensure success. If adopted successfully, mCRM can create huge potential and valueproposition to businesses and enhance their customer experience. There must bedifferent levels of mCRM services adoption, because specific CRM related objectives andfinancial commitment are required to implement decisions that meet customer’s needsover the long-term (Dimitriadis and Stevens, 2008).
3. Stages of technology adoption. The majority of ICT adoption literature mainlyfocuses on the key factors that influence the decision of ICT adoption, but fail to addressissues on how an organisation should successfully adopt the technology once they makesuch decision. To address this problem, Daniel and Wilson (2002) developed aconceptual framework to explain how SMEs adopt e-commerce technology. Theframework suggests that businesses adopt technology based on their intentions and
Figure 2.mCRM relationship
bond level
• Economic bond• Mobile advertising
• Social bond• Mobile communities
• Customised bond• Mobile location based
• Structure bond• Fully integrated mCRM
Level one
Level 2
Level 3
Level 4
Source: Adopted from Zheng and Longbottom (2009)
mCRM strategyin UK SMEs
231
they may develop and launch such services, expecting to realise benefits from theseservices being implemented. The framework is shown in Figure 3.
The study identified two distinct factors of adoption intention by SMEs: one aims toimprove service or recruit new customers, another aims to share knowledge within thebusiness network with reduced cost. It confirms that successful implementation ofe-commerce applications brings improvement to the business, which helps in achievingbenefits due to improved customer services and competitive position (Daniel andWilson, 2002). This framework is considered suitable for SMEs to adopt mCRM servicesas realising benefits of adoption are important factors that drive the adoption decisions.
Proposed mCRM strategy framework for UK SMEsOwing to SMEs usually lacking formalised or standard systems, a strategic approachneeds to be taken to ensure organisations operate in networks to realise the benefits froman increase in the scale of adoption (Raymond and Bergeron, 2008). A theoreticalframework is, therefore, proposed to explain the mCRM services adoption from the boththe IT and strategy and value proposition perspectives. The framework identifies keydeterminants of mCRM adoption by UK SMEs and shows the link between mCRMadoption and firm performance and the impact on the value creation proposition. WhenSMEs adopt mCRM services, they need to evaluate their CRM strategy and create valueproposition for their business. Several principle areas are identified to explain thesuccessful adoption of mCRM services in SMEs as below:
. Factors influencing the business to adopt mCRM strategy.
. Relationship between strategy and the level of mCRM services adoption.
. Benefits gained from mCRM adoption.
The mCRM strategy framework is shown in Figure 4.The mCRM strategies framework explains three levels of relationships that exist
when a firm adopts and integrates mobile channels into their current CRM system. Thefirst level illustrates the most significant factors that influence SMEs to adopt or rejectmCRM services. The second level explains the relationship between the firm’s CRMstrategy levels and their chosen mCRM services adoption, a positive relationship leadsto adoption, a negative relationship will lead to rejection. The third level-relationshipinvestigates the value proposition result from the mCRM services adoption andimplementation. The levels are explained in detail as follows.
Figure 3.E-commerce technologyadoption framework
Adoptionintentions
Source: Daniel and Wilson (2002)
Set ofe-commerce
activities
Benefitsrealised
Adoptionintention
Adoption Benefits realised
JSIT13,2
232
Level 1: significant determinants of mobile CRM services adoptionAccording to previous IT adoption literature, several factors explain why a firm adoptsmobile technologies. The most significant factors that impact on the mCRM adoption areidentified as mobile technological advantage, organisational context, external pressure,industrial characteristics, strategic positioning with level of CRM strategies.
Based on the proposed framework, three hypotheses are developed:
H1. Mobile technological advantages, organisational, environmental, industrialand managerial characteristics will significantly influence SMEs’owner/manager’s decision on adopting or rejecting the mCRM services.
H2. Strategy factors have strong links in influencing SMEs to adopt or rejectmCRM services.
H3. The barriers to adoption arise from evaluating the perceived benefits or risksinfluencing the decision and to an extent some of them can be overcome ifstrategies are in place to allocate resources or address issues to ensure success.
Mobile technology advantage. Perceived benefits or related advantages ofmobile technology include the wide reach and portability (Liang et al., 2007), mobilityand ubiquity (Schierholz et al., 2007), timely response with easy access (Wong and Lu,2005). Convenience is one of the strengths of adopting mCRM services, as they provideflexibility (Anckar and Eriksson, 2003) and 24-hour availability. Other benefits includelocalisation, personalisation, dissemination (Camponovo et al., 2007), context sensitivity,interactivity, convenience familiarity and multimediality (Schierholz et al., 2007),reduced latency, increased speed of response, enhanced efficiency of operationsand workforce, improved productivity ( Jain, 2003), eliminating time and distance
Figure 4.mCRM strategy
framework
Mobiletechnological
advantage
Organisationalcontext
Externalpressure
Adopt or rejectmobile CRM
services
Industrialcharacteristics(size, sector)
Adopt: creatingvalue proposition
(organisational andcustomer related)
No competitiveadvantages
gained
Strategy factors:level of CRM
strategy
Managerialcharacteristics
Barrier of adoption
Source: Adopted and modified from Zheng et al. (2009)
Value proposition mCRM strategyin UK SMEs
233
for companies to conduct business (Harker and van Akkeren, 2002). It has transformedbusiness processes and models, significantly impacting on SMEs’ process innovation(Scornavacca and Barnes, 2008).
Whilst the adoption of mCRM technology can bring in significant change tothe business’s work practices (Tornatzky and Klein, 1982), these changes need to becompatible with the business’s values and belief systems as well as being consistent withthe business process and strategy. SMEs must carefully select the type of mCRMapplications based on the level of integration, match them up with their innovationstrategy and affordability in order to derive the full benefits (Lefebvre and Lefebvre, 1993).
Organisational context. In order to adopt mCRM services successfully, resourcescommitment (financial and technical) (Kuan and Chau, 2001) and top managementcommitment (Premkumar and Roberts, 1999) must be made by SMEs, equipped with theIT skills or knowledge to support the adoption.
External pressure. Harker and van Akkeren (2002) stated that owner/managerswould need to assess the compatibility and benefits of mobile technology adoptionto include both the internal and external environment in which the business operates.External forces, such as increasing pressure from the external market where theorganisation operates, particularly the external support from the mobile applicationsuppliers, are found to be critical to the adoption of mobile technologies (Premkumar andRoberts, 1999). Businesses are more willing to adopt new technologies if they feel there isadequate vendor or third party support for the technology. Customer pressure isreported as the most important factor to influencing the decision, since mobile servicesare widely used by consumers (Mehrtens et al., 2001).
Industrial characteristics: firm size. A positive relationship between firm sizeand technology adoption has been confirmed in literature on various SMEs. Largerfirms have more resources and a supportive infrastructure (Schroder and Sohal, 1999)available to recruit the necessary skilled staff (Lal, 2005) to support faster adoption;whilst smaller sized SMEs are less complex as the owner/manager usually has a betterunderstanding of organisational issues (Al-Qirim, 2007). However, with more complexCRM systems, larger firms might take longer and use more resources to captureintegrated benefits (Schroder and Sohal, 1999). Firm size, not only positively influencesthe resources-based capability of a firm to adopt mobile channels, but also the type ofmobile services to adopt. Micro SMEs substantially differ from larger firms in theirmanagement activities (Schroder and Sohal, 1999) and resource availability. They needto carefully analyse and plan to gain the necessary external support and right skilledstaff ( Jones et al., 2003; Pavic et al., 2007) to ensure success.
Industrial characteristics: sector characteristics. Different industrial types and theirbusiness sectors have varied business and communication requirements that affectthe type of mobile applications and level of implementation, an SME will choose to adoptto fit into its strategy and current IT management systems. The requirements will bevaried in different SMEs across the sector. For example, SME service organisationsdifferentiate themselves from SME manufacturing, because their core competencies areproviding services instead of producing goods and the implementation of mCRM inthe grocery retail sector will be different from the finance sector.
Managerial characteristics. The educational level, professionalism, managerialtenure, and receptivity toward change of the small business owner/manager (Raymond,2001) and their ability to recognise opportunities and threats within their chosen market
JSIT13,2
234
(van Akkeren and Cavaye, 1999), and their reactive or proactive approaches to rapidtechnological changes, are crucial to ICT adoption and implementation (Martin andMatlay, 2001). Enterprises with entrepreneurial management and “hands on” leadershipstyles are likely to be ready to innovate (Lee, 1991). Southern and Tilley (2000) argue thatuse of ICT in SMEs is socially shaped, it relates to the subjective beliefs of theowner/manger, guided by previous experience of technology or suppliers, and therefore,is carried out within the social parameters in and around the organisation.
Barriers to adoption. There are many factors that cause SMEsowner/manager to reject mobile technology. These could indicate the uncertainty ofthe return on investment, the lack of specific competencies, the lack of informationsharing between business and service or application providers (Valsecchi et al., 2007).Schierholz et al. (2007) identified other barriers to adopting mobile technologiesincluding the internal and external controls, organisational readiness and mobiletechnological compatibility such as the internal and external controls, organisationalcharacteristics/readiness and mobile technological characteristics/compatibility. Chenand William (1993) believe that consideration of SMEs characteristics is important inorder to avoid the danger of technical determinism.
However, Balocco et al. (2009) found the barrier of adoption stemmed mainly fromthree areas: SME owner/manager has limited knowledge about mobile technologies andapplications; they are unaware of the perceived benefits of using the applications andhave difficulty in measuring the main economic and financial benefits prior to adoption.Evans (2002) found that the low acceptance rate for business adoption of m-commerce ismainly caused by business barriers related to business models and revenues, togetherwith technology barriers related to security, product maturity, standards, usability,bandwidth and cost. Another barrier to adopting mobile technologies is pointed out byHarker and van Akkeren (2002) – the lack of speed and a lack of a standardised ITinfrastructure environment for developing mobile data applications.
Level 2: CRM strategies in SMEs and their mCRM services adoptionThis level examines how CRM strategies impact on the mobile channel adoption; how thecurrent CRM strategy position of the enterprise determines the type of mCRM services,they will choose to adopt in order to create the desired relationship bond with their targetcustomers.
Strategy is crucial to a firm’s successful adoption of new technology(Tzokas and Saren, 1997) but more importantly, organisations must implement itproperly (Schierholz et al., 2007). Ghingold and Johnson (1998) point out that thepotential of mobile channel capabilities needs to be fully explored in the developmentof services to meet the key objectives and responsibilities of marketing in the future.The competitive positioning largely guides the SMEs in their innovation efforts(Lefebvre and Lefebvre, 1993). Therefore, interaction activities and the design andmanagement of customer-related information and business activities should be includedand carefully analysed.
Level 3: post adoption stage – the value proposition from CRM services adoptionmCRM services will enhance the customer experience, increase customer retention ratesto enable businesses to gain sustainable competitive advantage. mCRM services makesatisfied customer referral easier (Scullin et al., 2004), allows companies to offer choices
mCRM strategyin UK SMEs
235
for customer to use the most preferred communication channels to interact, and searchand buy products from their favourite brand. The third stage of mCRM strategymodel investigates the value creation proposition resulting from the mCRM strategyimplementation. These are discussed as follows.
Value proposition of mCRM adoption/benefit realised. The use of mCRM applicationssuch as mobile internet, mobile TV, MMS or bluetooth, enables the prompt deliveryof personalised services, enhances customer experience, brand satisfaction andincreased customer perception of brand quality (Nysveen et al., 2005). Eight corepotential effects of mCRM applications are identified by Barnes (2003) as: businesstransformation, efficiency, effectiveness, flexibility, ubiquity, connectivity, interactivityand location-awareness. Schierholz et al. (2007) highlighted five high levels of valueproposition as price, customer intimacy, accessibility, innovativeness and productquality. Clarke (2001) identified four types of value proposition for mobile channels asubiquity, localisation, personalisation and convenience.
Real time access of information appears to be the main benefit for a business to adoptmobile solutions (Balocco et al., 2009). mCRM services enables increased accuracy ofcustomer data and information, which eliminates the errors in data processes andsignificantly increases employee productiveness by enabling faster task processing sothat better decisions can be made from obtaining knowledge with better clarification,also allowing employees to handle emergency situations more flexibly (Gebauerand Shaw, 2004). Business activities or tasks previously bound to location or timeconstraints can now be equipped with “always on” connectivity and dispatched withmore flexibility. Unforeseen events can be reported and dealt with immediately, savingtime and increasing efficiency (Schierholz et al., 2007).
DiscussionAs the UK SME sector becomes more service oriented, CRM strategy becomes criticallyimportant (Dimitriadis and Stevens, 2008). Successful, innovative mCRM strategyshould aim to identify the relationship expectation gap between the businesses and theircustomers so that adequate resources can be allocated to offer solutions to addressthe issues. Based on secondary data and literature analysis, this paper summarises thesignificant facilitators and inhibitors of mobile technology adoption by UK SMEs andproposes a mCRM strategy framework. It helps to create awareness and provides insightinto the practical issues and gaps in the existing research.
From a managerial point of view, it is important for SMEs owner/managers torecognise the benefits that technology will bring to them (Kuan and Chau, 2001),understand the technology and functionality in order to integrate mobile channels intotheir business process. For the practitioner, the study highlights organisational factorsthat should be carefully considered to ensure the implementation can be fully supportedwith adequate resources including top management commitment, equipped with the ITskills or knowledge to support the adoption. More importantly, the relationship of CRMstrategies and the mCRM implementation has important implications for the systemdeveloper and CRM managers. The business must fully consider the cross functionalperspectives when adopting mCRM services.
The main problem SMEs face regarding technological innovation is the fact that theylack the necessary knowledge or find it difficult to apply it in practice (Stroeken, 2001).To increase the rate of adoption, the benefits and value of adopting mCRM
JSIT13,2
236
services should be clearly explained and the adoption needs to be designed to fit into theSME’s business process. The mCRM strategy framework suggests that the SMEsowner/manager needs to analyse their strategy and communication needs, and focus onbusiness values and core services when adopting mCRM services. The organisation’sstrategic positioning needs to be taken into account to match the level of mCRM servicesthat SMEs will adopt. The mCRM services need to be highly tailored to the targetedcustomers to ensure usefulness and relevance, otherwise customers may find it intrusiveor their privacy invaded. Permission must be sought prior to using mobile channels andcustomers must be able to opt out.
Limitation and conclusionThe mCRM strategy framework illustrates that SMEs will create intangible value,e.g. different levels of relationship bonds with their customers, from adoption. It alsoexplains strong relationships between business strategy and mCRM technology adoptionin UK SMEs. The decision for either realising partial function or full integration of mCRMsystems will depend on the strategy, business needs and availability of resources,as well as external influences, such as marketing agencies and application provider’srecommendations.
This conceptual model offers insight into how SME should adopt mCRM strategywhen incorporating mCRM services adoption. The nature of mCRM services also meansthat relationship strategy with customers will become the key drivers of adoption.However, this model needs to be tested empirically. Further research in this area wouldinvolve conducting an empirical study in the SMEs sector to identify any unexpectedfactors and confirm the determinants in our proposed framework. The positive ornegative outcomes of the mCRM service must be sought to be tested with theorganisational CRM strategy and their intention of adopting mCRM services. DifferentSME industries can be investigated to compare their differences and similarities. Forexample, retail, finance, and tourism sectors, may examine and identify the differencesor similarities across different SMEs industries.
References
Ajzen, I. (1991), “The theory of planned behaviour”, Organisational Behaviour and HumanDecision Processes, Vol. 50, pp. 179-211.
Al-Qirim, N. (2007), “A research trilogy into e-commerce adoption in small businesses inNew Zealand”, Electronic Markets, Vol. 17 No. 4, pp. 263-85.
Anckar, B. and Eriksson, N. (2003), “Mobility: the basis for value creation in mobile commerce”,Proceedings of the International Conference on Advances in Infrastructure for e-Business,e-Education, e-Science, e-Medicine, and Mobile Technologies on the Internet, L’Aquila, Italy.
Augst, S.G. and Wilson, D.T. (2005), “A primer for navigating the shoals of applying wirelesstechnology to marketing problems”, Journal of Business and Industrial Marketing, Vol. 20No. 2, pp. 59-69.
Balocco, R., Mogre, R. and Toletti, G. (2009), “Mobile internet and SMEs: a focus on the adoption”,Industrial Management & Data Systems, Vol. 109 No. 2, pp. 245-61.
Bandura, A. (2001), “Social cognitive theory: an agency perspective”, Annual Review ofPsychology, Vol. 52 No. 1, pp. 1-26.
Barnes, S.J. (2003), mBusiness: The Strategic Implications of Wireless Technologies,Butterworth-Heinemann, Oxford.
mCRM strategyin UK SMEs
237
Beckinsale, M., Levy, M. and Powell, P. (2006), “Exploring internet adoption drivers in SMEs”,Electronic Markets, Vol. 16 No. 4, pp. 361-70.
Camponovo, G., Pigneur, Y., Rangone, A. and Renga, F. (2007), Mobile Customer RelationshipManagement: An Explorative Investigation of the Italian Consumer Market, Department ofManagement, Economic and Production, Politecnico of Milan, Milan, available at: www.hec.unil.ch/yp/Pub/05-mbusiness.pdf (accessed 30 March 2007).
Chen, J.C. and William, B.C. (1993), “The impact of microcomputer systems on small businesses:England 10 years later”, Journal of Small Business Management, Vol. 31 No. 3, pp. 96-101.
Chen, J.-S. and Ching, R.K.H. (2002), “A proposed framework for transitioning to an e-businessmodel”, Quarterly Journal of Electronic Commerce, Vol. 3 No. 4, pp. 375-89.
Chong, S. (2008), “Success in electronic commerce implementation: a cross-country study of smalland medium-sized enterprises”, Journal of Enterprise Information Management, Vol. 21No. 5, pp. 468-92.
Clarke, I. (2001), “Emerging value proposition for m-commerce”, Journal of Business Strategies,Vol. 18 No. 2, pp. 133-48.
Daniel, E. and Wilson, H. (2002), “Adoption intentions and benefits realised: a study ofe-commerce in UK SMEs”, Journal of Small Business and Enterprise Development, Vol. 9No. 4, pp. 331-48.
Davis, F.D. (1989), “Perceived usefulness, perceived ease of use, and user acceptance ofinformation technology”, MIS Quarterly, Vol. 13 No. 3, pp. 319-39.
Dimitriadis, S. and Stevens, E. (2008), “Integrated customer relationship management for serviceactivities”, Managing Service Quality, Vol. 18 No. 5, pp. 496-511.
DTI (2001), Business in the Information Age: International Benchmarking Report, Department ofTrade and Industry, London.
Evans, N.D. (2002), Business Agility: Strategies for Gaining Competitive Advantage ThroughMobile Business Solutions, Prentice-Hall, Englewood Cliffs, NJ.
Fillis, I., Johannson, U. and Wagner, B. (2004), “Factors impacting on e-business adoption anddevelopment in the smaller firm”, International Journal of Entrepreneurial Behaviour &Research, Vol. 10 No. 3, pp. 178-91.
Fishbein, M. and Ajzen, I. (1975), Belief, Attitude, and Behaviour: An Introduction of Theory andResearch, Addison-Wesley, Reading, MA.
Freel, M.S. (2000), “Barriers to product innovation in small manufacturing firms”, InternationalSmall Business Journal, Vol. 18 No. 2, pp. 60-80.
Gebauer, J. and Shaw, M.J. (2004), “Success factors and impacts of mobile business applications:results from a mobile e-procurement study”, International Journal of Electronic Commerce,Vol. 8 No. 3, pp. 19-41.
Ghingold, M. and Johnson, B. (1998), “Intrafirm technical knowledge and competitive advantage:a framework for superior market driven performance”, Journal of Business and IndustrialMarketing, Vol. 13 No. 1, pp. 70-81.
Hannon, P.D. and Atherton, A. (1998), “Small firm success and the art of orienteering: the value ofplans, planning and strategic awareness in the competitive small firm”, Journal of SmallBusiness and Enterprise Development, Vol. 5 No. 2, pp. 102-19.
Harker, D. and Van Akkeren, J. (2002), “Exploring the needs of SMEs for mobile datatechnologies: the role of qualitative research techniques”, Qualitative Market Research:An International Journal, Vol. 5 No. 3, pp. 199-209.
Huang, Z. and Brown, A. (1999), “An analysis and classification of problems in small business”,International Small Business Journal, Vol. 18 No. 1, pp. 73-85.
JSIT13,2
238
Humphreys, P., McAdam, R. and Leckey, J. (2006), “Longitudinal evaluation of innovationimplementation in SMEs”, European Journal of Innovation Management, Vol. 8 No. 3,pp. 283-304.
Iacovou, C.L., Benbasat, I. and Dexter, A.S. (1995), “Electronic data interchange and smallorganisations: adoption and impact of technology”, MIS Quarterly, Vol. 19 No. 4, pp. 465-85.
IFPI (2006), “Music – a key driver of the digital economy”, Digital Music Report, IFPI, London,available at: www.musicaememoria.com/docs/ifpi-digital-music-report-2006.pdf(accessed 10 March 2009).
Igbaria, M., Zinatelli, N., Cragg, P. and Cavaye, A.L.M. (1997), “Personal computing acceptancefactors in small firms: a structural equation model”,MISQuarterly, Vol. 21 No. 3, pp. 279-305.
Jain, R. (2003), “Enterprise mobile services: framework and industry-specific analysis”,Proceeding of the Ninth Americas Conference on Information Systems 2003, Tampa, FL,USA, pp. 1981-8.
Jeffcoate, J., Caroline, C. and Sylvie, F. (2002), “Best practice in SME adoption of e-commerce”,Benchmarking: An International Journal, Vol. 9 No. 2, pp. 122-32.
Jones, P., Beynon-Davies, P. and Muir, E. (2003), “Ebusiness barrier to growth within the SMEsector”, Journal of Systems and Information Technology, Vol. 7, pp. 1-25.
Kol, S.C.L. and Maguire, S. (2004), “Identifying the adoption of e-business and knowledgemanagement within SMEs”, Journal of Small Business and Enterprise Development, Vol. 11No. 3, pp. 338-48.
Kuan, K.K.Y. and Chau, P.Y.K. (2001), “A perception-based model for EDI adoption in smallbusinesses using a technology-organisational-environmental framework”, Information &Management, Vol. 38 No. 8, pp. 507-21.
Laforet, S. and Tann, J. (2006), “Innovative characteristics of small manufacturing firms”, Journalof Small Business and Enterprise Development, Vol. 13 No. 3, pp. 363-80.
Lal, K. (2005), “Determinants of the adoption of e-business technologies”, Telematics andInformatics, Vol. 22 No. 3, pp. 181-99.
Lee, G.L. (1991), “The role of technology in small and medium-sized enterprises”, IntegratedManufacturing Systems, Vol. 2 No. 4, pp. 9-13.
Lefebvre, L.A. and Lefebvre, E. (1993), “Competitive positioning and innovative efforts in SMEs”,Small Business Economics, Vol. 5 No. 4, pp. 297-305.
Lefebvre, L.A., Mason, R. and Lefebvre, E. (1997), “The influence prism in SMEs: the power ofCEOs’ perceptions on technology policy and its organisational impacts”, ManagementScience, Vol. 43 No. 6, pp. 856-78.
Levy, M. and Powell, P. (2003), “Exploring SME internet adoption: towards a contingent model”,Electronic Markets, Vol. 13 No. 2, pp. 173-81.
Liang, T.-P., Huang, C.-W., Yeh, Y.-H. and Lin, B. (2007), “Adoption of mobile technology in business:a fit-viability model”, Industrial Management & Data Systems, Vol. 107 No. 8, pp. 1154-69.
Lin, C., Huang, Y.-A. and Tseng, S.-W. (2007), “A study of planning and implementation stages inelectronic commerce adoption and evaluation: the case of Australian SMEs”,Contemporary Management Research, Vol. 3 No. 1, pp. 83-100.
Maguire, S., Koh, S.C.L. and Magrys, A. (2007), “The adoption of e-business and knowledgemanagement in SMEs”, Benchmarking: An International Journal, Vol. 14 No. 1, pp. 37-58.
Marasini, R., Ions, K. and Ahmad, M. (2008), “Assessment of e-business adoption in SMEs – astudy of manufacturing industry in the UK north east region”, Journal of ManufacturingTechnology Management, Vol. 19 No. 5, pp. 627-44.
mCRM strategyin UK SMEs
239
Martin, L.M. and Matlay, H. (2001), “Blanket approaches to promoting ICT in small firms: somelessons from the DTI ladder adoption model in the UK”, Internet Research: ElectronicNetworking Application and Policy, Vol. 11 No. 5, pp. 399-410.
Mehrtens, J., Cragg, P.B. and Mills, A.M. (2001), “A model of internet adoption by SMEs”,Information & Management, Vol. 39 No. 3, pp. 165-76.
Mobile Data Association (2010),TheQ42009UKMobile TrendsReport, available at: www.themda.org/mda-press-releases/the-q4-2009-uk-mobile-trends-report.php (accessed 1 December 2010).
Moon, B.-J. and Jain, S.C. (2007), “Determinants and outcomes of internet marketing activities ofexporting firms”, Journal of Global Marketing, Vol. 20 No. 4, pp. 55-71.
Muller-Lankenau, C., Wehmeyer, K. and Klein, S. (2005), “Multi-channel strategies: capturing andexploring diversity in the European retail grocery industry”, International Journal ofElectronic Commerce, Vol. 10 No. 2, pp. 85-122.
Muller-Veerse, F., Kohlenbach, B., Bout, D., Singh, S. and Golub, G. (2001), UMTS Report:An Investment Perspective, available at: www.attitudeweb.be/doc/resources/studies/umts_report_an_investment_perspective.pdf (accessed 22 June 2009).
Nolan, R.L. (1973), “Managing the computer resources: a stage hypothesis”, Communications ofthe ACM, Vol. 16 No. 7, pp. 399-405.
Nysveen, H., Pedersen, P., Thorbjornsen, H. and Berthon, P. (2005), “Mobilizing the brand – theeffects of mobile services on brand relationships and main channel use”, Journal of ServiceResearch, Vol. 7 No. 3, pp. 257-76.
O’Brien, E.M. (1998), “The DTI marketing initiative: the experience of 35 young Scottishcompanies”, Journal of Small Business and Enterprise Development, Vol. 5 No. 3, pp. 219-27.
Parker, C.M. and Castleman, T. (2009), “Small firm e-business adoption: a critical analysis oftheory”, Journal of Enterprise Information Management, Vol. 22 Nos 1/2, pp. 167-82.
Pavic, S., Koh, S.C.L., Simpson, M. and Padmore, J. (2007), “Could e-business create a competitiveadvantage in UK SMEs”, Benchmarking: An International Journal, Vol. 14 No. 3, pp. 320-51.
Poon, S. and Swatman, P.M.C. (1997), “Small business use of the internet; findings fromAustralian case studies”, International Marketing Review, Vol. 14 No. 5, pp. 385-402.
Premkumar, G. and Roberts, M. (1999), “Adoption of new information technologies in rural smallbusinesses”, Omega International Journal of Management Science, Vol. 27 No. 4, pp. 467-84.
Prospect Directory (2009), “Small businesses: big opportunities”, Prospect Directory 2008/2009,15th ed., Graduate Prospects Ltd, Manchester, p. 32.
Raymond, L. (2001), “Determinants of web site implementation in small businesses”, InternetResearch: Electronic Networking Application and Policy, Vol. 11 No. 5, pp. 411-22.
Raymond, L. and Bergeron, F. (2008), “Enabling the business strategy of SMEs throughe-business capabilities: a strategic alignment perspective”, Industrial Management & DataSystems, Vol. 108 No. 5, pp. 577-95.
Riemenschneider, C.K., Harrison, D.A. and Mykytyn, P.P. Jr (2003), “Understanding IT adoptiondecisions in small business: integrating current theories”, Information & Management,Vol. 40 No. 4, pp. 269-85.
Rizzoni, A. (1991), “Technological innovation and small firms: a taxonomy”, International SmallBusiness Journal, Vol. 9 No. 3, pp. 31-42.
Rogers, E.M. (1995), Diffusion of Innovations, 4th ed., The Free Press, New York, NY.
Sadowski, B.M., Maitland, C. and Dongen, J.V. (2002), “Strategic use of the internet by small-andmedium-sized companies: an exploratory study”, Information Economics and Policy,Vol. 14 No. 1, pp. 75-93.
JSIT13,2
240
Scharl, A., Dickinger, A. and Murphy, J. (2004), “Diffusion and success factors of mobilemarketing”, Electronic Commerce Research and Applications, Vol. 4, pp. 159-73.
Schierholz, R., Kolbe, L.M. and Brenner, W. (2007), “Mobilizing customer relationshipmanagement”, Business Process Management Journal, Vol. 13 No. 6, pp. 830-52.
Schroder, R. and Sohal, A.S. (1999), “Organisational characteristics associated with AMT adoption”,International Journal of Operations & Production Management, Vol. 19 No. 12, pp. 1270-91.
Scornavacca, E. and Barnes, S.J. (2008), “The strategic value of enterprise mobility: case studyinsights”, Information, Knowledge and Systems Management, Vol. 7 Nos 1/2, pp. 227-41.
Scornavacca, E., Barnes, S.J. and Huff, S.L. (2004), “Mobile business research, 2000-2004:emergence, current status, and future opportunities”, Communications of AIS, Vol. 17No. 28, pp. 2-19.
Scullin, C.C., Fjermestad, J. and Romano, N.C. Jr (2004), “E-relationship marketing: changes intraditional marketing as an outcome of electronic customer relationship management”,Journal of Enterprise Information Management, Vol. 17 No. 6, pp. 410-15.
Seethamraju, R. and Seethamraju, J. (2008), “Adoption of ERP in medium-sized enterprise – acase study”, Proceeding of the 19th Australasian Conference on Information Systems,Christchurch, 3-5 December.
Southern, A. and Tilley, F. (2000), “Small firms and information and communication technologies(ICTS): toward a typology of ICTS usage”, NewTechnology,Work and Employment, Vol. 15No. 2, pp. 138-54.
Stockdale, R. and Standing, C. (2006), “A classification model to support SME e-commerce adoptioninitiatives”, Journal of Small Business and Enterprise Development, Vol. 13 No. 3, pp. 381-94.
Stroeken, J.H.M. (2001), “The adoption of IT by SMEs: the Dutch case”, Journal of EnterprisingCulture, Vol. 9 No. 1, pp. 129-52.
Sutanonpaiboon, J. and Pearson, A.M. (2006), “E-commerce adoption: perceptions ofmanagers/owners of small- and medium-sized enterprises (SMEs) in Thailand”, Journalof Internet Commerce, Vol. 5 No. 3, pp. 53-82.
Tornatzky, L.G. and Klein, K.J. (1982), “Innovation characteristics and innovation adoption –implementation: a meta analysis of findings”, IEEE Transactions on EngineeringManagement, Vol. 29 No. 1, pp. 28-45.
Tzokas, N. and Saren, M. (1997), “On strategy, typologies and the adoption of technologyinnovations in industrial markets”, British Academy of Management, Vol. 8, pp. 91-105(special issue).
Valsecchi, M., Renga, F.M. and Rangone, A. (2007), “Mobile customer relationship management:an exploratory analysis of Italian applications”, Business Process Management Journal,Vol. 13 No. 6, pp. 755-70.
van Akkeren, J.K. and Cavaye, A.L.M. (1999), “Factors affecting entry-level internet adoption bySMEs: an empirical study”, Proceedings of the Australasian Conference on InformationSystems, Vol. 2, pp. 1716-28.
Venkatesh, V., Morris, M.G., Davis, F.D. and Davis, G.B. (2003), “User acceptance of informationtechnology: toward a unified view”, MIS Quarterly, Vol. 27 No. 3, pp. 425-78.
Wong, T. and Lu, Y. (2005), “Key factors for small and medium enterprises in Taiwan tosuccessfully implement information systems”, International Journal of Management andEnterprise Development, Vol. 2 No. 1, pp. 106-21.
Yang, X. and Fu, J. (2008), “Review of IT/IS adoption and decision-making behaviour in smallbusinesses”, Tsinghua Science and Technology, Vol. 3 No. 3, pp. 323-8.
mCRM strategyin UK SMEs
241
Zeithaml, V.A., Bitner, M.J. and Gremler, D.D. (2009), Service Marketing: Integrating CustomerFocus Across the Firm, 5th ed., McGraw-Hill International Edition, New York, NY.
Zheng, V. and Longbottom, D. (2009), “Mobile CRM strategy: exploring critical success factorsfor best practice”, Proceedings of the Academy of Marketing Annual Conference 2009,Leeds Metropolitan University, Leeds, 6-9 July.
Zheng, V., Longbottom, D. and Brindley, C. (2009), “The value proposition of adopting mCRMstrategy in UK SME service firms”, Proceedings of the 32rd Annual ISBE Conference,Liverpool, 3-6 November.
Further reading
Componovo, G., Pigneur, Y., Rangone, A. and Renga, F. (2005), “Mobile customer relationshipmanagement: an exploratory investigation of the Italian consumer market”,paper presented at M-business 2005 Conference, Sydney.
Rapp, A. and Rapp, T. (2008), “An empirical analysis of e-service implementation: antecedentsand the resulting value creation”, Journal of Service Marketing, Vol. 22 No. 1, pp. 24-36.
Raymond, L. and Pare, G. (1992), “Measurement of information technology sophistication insmall manufacturing businesses”, Information Resources Management Journal, Vol. 5No. 2, pp. 4-16.
Tornatzky, L.G. and Fleischer, M. (1990), The Processes of Technological Innovation, LexingtonBooks, Lexington, MA.
Corresponding authorVanessa Zheng can be contacted at: [email protected]
To purchase reprints of this article please e-mail: [email protected] visit our web site for further details: www.emeraldinsight.com/reprints
JSIT13,2
242
AppendixB
arri
ers
ofad
opti
onL
ack
ofd
etai
lk
now
led
ge
onh
owto
rep
osit
ion
bu
sin
ess
for
the
onli
ne
env
iron
men
t26
Lac
kof
inte
gra
tion
and
vis
ibil
ity
34L
ack
ofd
etai
led
kn
owle
dg
eof
stra
teg
icim
por
tan
ceof
EC
and
onli
ne
bu
sin
ess
mod
els
16,
29,
35L
ack
ofco
nfi
den
cein
thei
row
nab
ilit
yto
mas
ter
the
tech
nol
ogy
16,
25C
auti
ous
ofri
skta
kin
g1
Ala
ckof
tech
nic
alex
per
tise
tou
nd
erst
and
the
opp
ortu
nit
ies
and
eval
uat
eth
eri
sk1,
9,11
,12
,18
,22
,35
Lac
kof
avai
lab
lere
sou
rces
1,7,
12,
16,
26,
34L
ack
ofon
lin
eb
uy
ers
and
sup
pli
ers
29L
ack
ofin
tern
atio
nal
opp
ortu
nit
ies
avai
lab
le29
Lac
kof
sup
por
tfr
omte
chn
olog
yv
end
ors
12,
29L
ack
offi
nan
cial
reso
urc
es/c
once
rnab
out
cost
12,
16,
32,
34,
25,
32P
oor
man
agem
ent
skil
ls12
Un
suit
abil
ity
ofp
rod
uct
s29
Low
com
pu
teri
zati
onle
vel
ofth
eop
erat
ion
s3,
28L
owen
trep
ren
euri
alcu
ltu
re12
,16
Lev
elof
mis
tru
stof
the
ITin
du
stry
14C
ost
ofth
ete
chn
olog
y14
,20
,16
Lac
kof
con
fid
ence
inth
eab
ilit
yof
sup
pli
erto
sup
ply
the
req
uir
edle
vel
ofco
nn
ecti
vit
y16
,25
Lac
kof
tru
stin
ITse
ctor
25L
ack
ofu
ser
resi
stan
tm
anag
emen
t26
Lac
kof
chan
ge
man
agem
ent
26L
ack
ofu
ser
inv
olv
emen
t26
Ow
ner
/man
ager
are
lack
ing
app
rop
riat
esk
ills
and
kn
owle
dg
e16
,27
Ow
ner
/man
ager
are
lack
ing
enou
gh
info
rmat
ion
reg
ard
ing
wh
ere
tose
ekh
elp
16,
27L
ack
ofg
over
nm
ent
init
iati
ves
27L
ack
ofIT
exp
erti
se27
Wil
lin
gn
ess
tou
pg
rad
eth
eir
exis
tin
gte
chn
olog
ies
27L
ack
ofti
me
tota
ke
adv
anta
ge
ofIC
T16
,28
,29
Lac
kof
trai
ned
stu
ffs
28C
hal
len
ge
ofev
alu
atio
nan
dse
lect
ion
ofth
esu
itab
leso
ftw
are
34
Table AI.
mCRM strategyin UK SMEs
243
Clu
ster
sF
acto
rsF
oun
dim
por
tan
tF
oun
du
nim
por
tan
t
Org
anis
atio
nal
Info
rmat
ion
inte
nsi
ve
ofp
rod
uct
/ser
vic
e8
Pro
du
ctch
arac
teri
stic
s20
Fle
xib
lest
ruct
ure
1,8
Han
gs
onm
anag
emen
tst
yle
1,7
Fin
anci
al3,
7,11
,12
,16
,22
,33
10M
anag
eria
lst
ruct
ure
8,21
Tec
hn
ical
reso
urc
es3,
10,
11,
12,
16,
17,
19,
22,
33In
form
atio
nan
dco
mm
un
icat
ion
tech
nol
ogy
adop
tion
stag
es8,
7,14
,19
Cu
ltu
re16
,21
,23
Str
uct
ure
23P
osit
ive
exp
erie
nce
abou
tIT
27A
ge
32C
omp
lex
ity
ofb
usi
nes
sop
erat
ion
s34
Use
rin
vol
vem
ent
35In
tern
altr
ain
ing
5,12
35L
evel
ofso
ph
isti
cati
onof
ITu
sag
ean
dIT
man
agem
ent
inor
gan
isat
ion
3,8,
7,14
,16
,30
Sec
tora
lch
arac
teri
stic
sIn
du
stri
alse
ctor
1,8,
14,
15,
20,
28,
29,
32,
3623
Siz
e6,
8,11
,14
,15
,16
,19
,20
,26
,28
,29
,30
,32
,33
23K
now
led
ge
inte
nsi
ve
ind
ust
ry8
29E
xp
erie
nce
inth
ein
du
stry
7,8,
9R
equ
irem
ent
and
exp
erie
nce
sof
firm
s7
Ty
pe
ofp
rod
uct
dev
elop
men
t/p
rod
uct
char
acte
rist
ics
30T
yp
eof
cust
omer
s8,
9,13
,16
Tec
hn
olog
ical
char
acte
rist
ics
Rel
ativ
ead
van
tag
e/p
erce
ived
ben
efit
6,11
,18
,3,
10,
13,
18,
14,
17,
24,
31,
341,
29P
erce
ived
use
fuln
ess
5,8,
13C
ost
11,
12,
13,
291,
29C
omp
atib
ilit
y1,
29,
30,
34T
ech
nol
ogic
alre
adin
ess
10,
11C
omp
lex
ity
Ty
pe
ofte
chn
olog
ies
avai
lab
le16
,21
e-B
usi
nes
sca
pab
ilit
ies
32M
anag
eria
lco
nte
xt
CE
Och
arac
teri
stic
s/in
nov
ativ
enes
s8,
7,17
,20
,22
,23
,25
,1,
29,
30C
EO
’s/m
anag
emen
tin
vol
vem
ent
16,
21,
241,
29L
ead
ersh
ipst
yle
7,21
,23
En
trep
ren
euri
alu
sag
eof
ICT
8,20
(continued
)
Table AII.Factor influence SMEstechnology adoptiondecisions from previousliteratures
