Factors Affecting Company Performance and New Product Performance

Abstract: Customer relationship management (CRM) is a key factor that affects company performance and acting as back-bone for companies in 21^st Century. CRM helps an organization to improve not only its existing products, services and procedures but also enables it to develop better and novel new products. However, the antecedents of CRM have only been explored in the context of existing products but CRM's potential to support in future new product development (NPD) has been ignored. The aim of this paper is to develop and test a model for factors affecting company performance and new product performance. This study develops a theoretical framework with multiple aspects of CRM having links with new product performance and company performance. The results from the analysis of 233 responses suggest that when a firm employs more of its CRM processes in an NPD context, the higher is firm's new product performance. On the other hand, data does not support for any significant influence of CRM technology on new product development and new product performance. In addition to this, the application of CRM reward systems does not play a facilitating role in new product performance.