CRM Technology Adoption and Firm Performance: Evidence from Service Industries

Abstract

Purpose – CRM technologies are widely adopted in service industries, yet performance outcomes remain heterogeneous. This study develops an integrative framework that explains when CRM technology adoption translates into measurable gains in customer, operational, and financial performance.

Design/methodology/approach – We conduct a structured integrative review of CRM adoption–performance research in service settings and adjacent IS/marketing literatures. Using the technology–organization–environment (TOE) lens, complemented by the resource-based view and dynamic capabilities, we synthesize mechanisms and boundary conditions that shape value realization.

Findings – The evidence converges on a capability-based pathway: CRM adoption creates value only when it is followed by assimilation (routinized, high-quality use), which builds operational, analytical, and collaborative CRM capabilities. These capabilities primarily improve customer outcomes (satisfaction, retention, profitability) and service productivity, which subsequently drive financial performance with time lags. Performance benefits are contingent on data quality and integration readiness, frontline enablement, and environmental turbulence (e.g., channel shifts, technology upgrades, privacy regulation).

Originality/value – The paper clarifies the adoption–assimilation distinction, integrates service-specific boundary conditions, and proposes testable propositions for future empirical research. It also provides actionable guidance for managers to govern data, embed CRM into service routines, and evaluate CRM ROI beyond short-term financial metrics.