Assessing the Influence Integration of Customer Relationship Management (CRM) on Financial Performance: An Empirical Study on Commercial Jordanian Banks in Amman

Abstract Purpose: The purpose of this paper is to investigate the relationship between Integration of CRM and various aspects of organization performance (i.e. financial, customer, internal process, and learning and growth) in Jordan banks. Design/methodology/approach: This is a quantitative study, the response came from the managers of 155 Commercial banks and data collected was subjected to correlation and regression analysis in pursuance of the study's stated objectives. Findings: The results of this study suggest that tow dimension of CRM integration (Data Integration and CRM Functionality). CRM Functionality has a positive and significant impact on different perspectives of bank performance. However, Data integration failed to show a significant relationship with perspective of financial performance. Research limitations/implications: An emphasis has been placed on the direct relationship between CRM Functionality and organization performance perspectives as well as, the study concentrated only on bank in Amman. Practical implications: Meaningful implications are made that building an extensive and effective CRM integration in bank firms is crucial to face a high competition and improve performance in Jordan bank sector. Originality/value: The paper addresses CRM integration issues specifically for bank in Jordan.

service), data integration on customer relationship performance. Thus, further research is required to examine this. In another study of Indian banking, telecom, and retail industry, Desai et al. (2007) found positive impact of integration function and data integration on Organization performance with customer focus (achieving customer satisfaction, keeping current customers). On the other hand, organizational focus perspective did not show positive association between CRM technology and Organization performance like securing desired market share and securing desired financial performance (Desai et al., 2007). These findings give an important insight into the ongoing debate of the impact of IT on CRM. The studies indicate the necessity of further research for the integration function. Malte et al. (2006) states, that there is lack of research on integration of CRM in Middle East context.
Using data from Korean companies, Chang et al. (2009) focused upon four elements of CRM technologies namely sales support, service support, analysis support, and data integration and access support. They found positive relationships between these activities and customer relationships effectiveness (Al-Weshah et al, 2018).
All the aforementioned discussions support the argument that there exists a positive link between CRM functionality and data integration of CRM initiatives and CRM integration in organizations. Researchers have identified and mentioned the importance of CRM functionality and data integration as a critical factor of CRM integration at the organizational level. In the literatures CRM integration has gained little attention from the researcher. Few CRM studies specifically investigate the impact of CRM functionality and data integration adopted or level of CRM system integration within the firm. Without the fundamental shift in the approach of CRM integration on CRM initiatives and Organizational performance in organizations, we will see continuous high failure rates.

Organizational Performance:
From the perspective of the organization, organization performance is considered as a construct with multi dimensions. Based on the organization theory, organizational performance can be divided into both effectiveness and efficiency (Alshourah, 2014;Chang et al 2009& Bright et al, 2016. The impacts or net benefits of information systems on organizational performance are not yet addressed adequately by research (DeLone & McLean;2003 Jayachandran et al;2005).
The present study will on the influence of CRM integration (CRM functionality and Data integration) on financial performance due to the use of CRM as a business strategy not only to acquire new customers but also to retain existing customers for competitive advantage (Sin et al., 2005). The success of CRM integration can enhance organizational performance through improving reducing customer acquisition costs and increasing profitability. Managers of firms that provide CRM technology and related services are concerned; reports that CRM efforts are not effective are particularly alarming. As such, exploration of the impact of CRM integration on different organizational performance measures is required to reassess its potential to create firm value and to justify the investments firms have made in this area and its influence on financial performance (Boulding et al., 2005, Shwu et al, 2012. Various empirical studies reveal that integration of CRM success brings about advantages in the form of improved performance (Bright et al, 2016, Coltman, 2007, Thompson et al., 2006Krasnikov et al., 2009;Boulding et al., 2005). The presence of this positive relationship between CRM and performance owes itself to the use of CRM as a business strategy to attract and keep new customers and to retain existing ones for the purpose of competitive advantage. The lack of empirical investigations catering to the description and exploration of how to determine the financial affect of CRM Integration it perhaps the greatest challenge posed to the theoretical development of CRM integration (Alshourah, 2014;Sun et al., 2008).
It is evident from the aforementioned discussion that there is a positive relationship between CRM integration and financial performance of the organizations. Also empirical studies support CRM to be the critical success factor for business performance in a variety of environments. Empirical studies have shown that CRM integration bring benefit in terms of improved performance. In spite of this, there is lack of empirical investigations are perhaps the main causes whose aim should be describing and exploring how to determine the financial impact of CRM (Bright et al, 2016, Coltman, 2007.. Thus, this study will focus on the influence of CRM integration on financial performance in Jordanian Banks Industry.

Methodology of the research
This study was cross-sectional in nature where data were collected once to answer the study"s research questions (Sekaran, 2010). Data were collected through personal survey using questionnaire. The population of the study is the whole of the Commercial banks that implementation IT on CRM in Jordan (Central Bank of Jordan, 2016). Focus on general and branch managers.. The reason for choosing the bank industry was that CRM is extremely important in the bank sector, particularly in bank owing to the importance of customer relations involved.. To collect the data, 155 questionnaires were distributed to banks in Jordan. Out of these, 141 were returned of which 10 were excluded because they were incomplete. Thus, a total of 131 completed questionnaires were used for empirical analysis, giving a response rate of 85 percent. The organizational performance has been broadly viewed from two financial performance perspectives (objective and subjective measures) in the previous literature. First, there is the subjective concept, which is primarily concerned with the performance of firms relative to that of their competitors (Sin et al., 2005). The second view is the objective concept, which is based on absolute measures of performance (Jaakkola et al., 2009). For this study, a subjective rather than an objective approach was used. Each respondent in this study is evaluated according to his/her company"s current (objective) financial performance relative to its major competitors with respect to the following four items: sales growth, Return on investment (ROI), market share, and Return on sales (ROS) (Sin et al., 2005). Responses is made on a six-point scale ranging from 1 "far below expectation "2" below expectation" 3 "as expected" 4 "above expectation" 5 "far above expectation" major competitors (Jaakkola et al., 2009) Integration of CRM is operationalized by two dimensions namely integration functions (sales, marketing, and service, analysis support) and integration data components which includes front-office applications that support sales, marketing, and service, analysis support, and back-office applications that help integrate and analyze the data (Greenberg, 2001). Sales support will permit management of sales leads and provide competitor and customer information to the sales force and manage sales through multiple channels by tracking product availability (Jaychandran et al., 2005). Marketing support includes market planning, execution of campaigns, and measurement of campaign performance (Desai et al., 2007). Service support helps customers serve themselves by providing ready access to a knowledge-base of solutions (Desai et al., 2007). These front-office or customer interaction solutions will be supported by a customer data repository and software that will help integrate and analyze the data (Jaychandran et al., 2005). The instrument has eight items measured on a 5 point Likert scale that ranges from '1' (for strongly disagree) to '5' (for strongly agree).

Result of Exploratory Factor Analysis 4.1 Organizational performance
The factor analysis conducted on organizational performance shows the Kaiser-Meyer-Okin value of .82, exceeding the recommended value of .5 (Hair et al., 1998) or above .6 (Pallant, 2004) and the Barlett's test of sphericity was highly significant (p= .00), supporting the factorability of the correlation matrix. Furthermore, a close inspection of the individual MSA value revealed that all the items have values within the acceptable range, which is between .79 and .84. These indicate that the assumptions of factor analysis were met. Principal component analysis revealed the presence of only one component with an eigen value exceeding one. This factor captured 84.40 percent of the total variance in the items.
As shown in Table 1.1, factor loadings are between .85 and .94. Reliability (Cronbach's Alpha) for this factor is .93, which indicates high reliability. Item-to-total correlations revealed that removal of any item would not increase the alpha beyond .93, thus supporting the inclusion of all scale items. We provide our sales force with information for cross-selling.
.89 We provide customized offers to sales people on field.
.76 We assign prospects to appropriate sales personnel.
.70 We tracks product availability and facilitate inventory management.
.65 We provide our sales force with adequate customer information.
.58 We control sales through multiple sales channels.
.57 We provide automated routine activities such as providing promotional literature. .56 We help marketing department analyzing responses to marketing campaigns. .56 We provide our sales force in the field with competitor information. .56

Integration Data
Our customer information is integrated from different contact points (e.g., mail, telephone, Web, fax). .86 Data consists of customers' transaction data and external source data. .83 We emphasis on customizing service scripts to the particular customer's needs. .72

Regressions: Multiple Regression Analysis on factors that influence CRM performance
In order to answer the research question on the factors that influence customer relationship management performance, regression analysis was undertaken on the predicted factors and customer relationship management performance.
At the beginning stage of data analysis, all outliers have been filtered out. There are four reasons that cause outliers (Hamid, 2006). The first reason occurs from incorrect data entry. In this research, a few cases of these errors were noted and corrected. The second type of outlier is the inclusion of missing values, and the third type is the result of sampling error where cases are not representative of the intended population. Finally, outliers include those observations within the intended population but are extreme in their combination of values across the variables.
From the first run of the regression analysis, the outliers were examined. The case wise diagnostics indicate that observation numbers 90, 84 and 78 was outliers and was therefore, filtered out in the next regression run.
The table shows that the relationship between independent and dependent variables is significant (F = 31.707; Sig. = .00). The R2 obtained indicates that the influencing factors account for 71% of the variation in CRM performance. Of all the variables included in the regression equation, only four variables emerged as significant predictors of customer relationship management performance. These are top management, customer data, customer information processing and CRM functionality (β =. 243). Based on these results, hypotheses H1 is supported. This leads to the conclusion that CRM functionality are positively related to financial performance. Data Integration (β =.045) is found to have no significant influence on financial performance. Therefore, hypotheses H2 is rejected.

DISCUSSION AND CONCLUSION
Based on recourse based view (RBV) theory by Barey (1991), the model of competitive advantage and previous research on customer relationship management (CRM) and CRM performance, this study investigated CRM performance and it impact on organizational performance.
For quotation answer research question is related to the relationship between CRM Integration and organizational performance. This research found a significant relationship between CRM functionality (marketing, sales, and customer service), and financial performance in Jordanian banks. This result is consistent with previous study findings by Desai et al. (2007) who revealed a positive impact of CRM functionality on financial performance with customer focus (achieving customer satisfaction, keeping current customers). Organizational focus perspective shows a positive association between CRM technology and CRM performance like securing desired market share and securing desired financial performance (Desai et al., 2007). Using data from Korean companies, Chang et al. (2009) focused upon three elements of CRM technologies namely sales support, service support and marketing support. They found positive relationships between these activities and customer relationships effectiveness. An empirical study by Chang et al. (2005) found CRM functionality has a positive impact on the Organizational performance service sectors in Taiwan. An seemlier study by Shwu et al, (2012) it found result.
This study has successfully supported the argument that integration of CRM functionality consideration is sufficiently regarded in financial performance of Jordanian banks industry. banks recognize that CRM functionality plays an invaluable role in enhancing customer satisfaction and customer loyalty. In light of this, CRM technology allows the integration of a firm's marketing activities (e.g. sales, service, communication, order management, market research and analytics) to bring a focus on individual customer acquisition, retention, and profitability. Therefore, more adoption of CRM functionality results in better marketing practices, sales automation, and customer services that assist the firm to deal with customer relations more properly in Jordanian banks industry. Consequently, it is no doubt that the adoption of CRM technology for banks sectors in Jordan contributes to their financial performance.
For to data integration, This research found no significant relationship between data integration and financial performance. In other words, data integration is not a predictor of continuous enhancement financial performance in Jordanian banks. This research finding is consistent with past research by Jayachandran et al. (2005) involving senior marketing managers, sales managers, and customer service managers in 1105 SBUs of top firms in the United States. They found no significant difference in the influence of data integration on the customer relationship performance of goods and service firms. Their results suggest that business-to-business and service SBUs do not enjoy any advantage over their business-to-consumer and goods counterparts respectively, in terms of the influence of data integration use on customer relationship performance. In another study on Indian banking, telecom, and retail industry, Desai et al. (2007) found no positive association between data integration and Organiztion performance. However, Wells et al. (1999) found a negative link between integration of customer data and successful customer interaction.
The plausible reasons for the insignificant impact of data integration on CRM performance in Jordanian banking may be because successful CRM necessitates full data integration and its associated costs (Hart, 2006). It could be that Jordanian banks have not yet invested substantially in full data integration to construct a single view of the customer. banks that fail to address data integration issues risk missed opportunities and operational inefficiencies. Although it is rarely a trivial undertaking, developing and maintaining a high-quality, integrated data repository is worth the effort. It is the means to achieve the important benefits: Cost savings from the removal of redundant customer data, increased revenue from identifying and targeting first-time customers, enhanced revenue from higher customer satisfaction and retention, savings in operational costs. Consequently, developing and maintaining integrated customer data repository and eliminating excess operational costs caused by redundant data are prerequisites to achieve the cost reduction, revenue enhancement benefits, and enhancing revenue through improved customer targeting and retention and higher financial performance (Malte et al., 2006;Neslin et Al., 2006, Shwu et al, 2012.

Managerial Implications
Besides theoretical contributions of this study, several managerial implications can be highlighted. This study has provided key leads to banks on strategies to manage their CRM integration through organizational and technological factors so as to ensure a high level of financial performance.
This study serves as an attempt to provide banks in Jordan with practical advice as to how they can build and sustain their competitiveness in their sector, which is marred by structural changes and increasing competition and customer demands that require banking to focus on certain core competencies in order to deliver better value to their customers (Kim et al., 2010;Sin et al., 2005).
Furthermore, bank managers in Jordan can acquire insights concerning Organization performance which would help them develop and implement successful CRM strategies. Other service industries among developing Journal of Resources Development andManagement www.iiste.org ISSN 2422-8397 An International Peer-reviewed Journal Vol.60, 2019 51 countries could also benefit from the study's findings. This becomes important especially in light of Sin et al. (2005) assertion that it is no longer sufficient to advice practitioners or researchers that the key to successful marketing is through CRM integration, without providing information on what dimensions actually constitute relationships upon which CRM can be considered to exist. Such empirical validation is needed to provide a sufficient advice as to how the CRM concept can be properly translated into a comprehensive set of concrete organizational activities conducive to CRM success (Alshourah, 2014;Shwu et al, 2012).
In terms of CRM functionality, consideration is sufficiently regarded in CRM performance. Hotels recognize that CRM functionality plays an invaluable role in enhancing customer satisfaction and customer loyalty. In light of this, CRM technology allows the integration of a firm's marketing activities (e.g. sales, service, communication, order management, market research and analytics) to bring focus on individual customer acquisition, retention, and profitability. CRM functionality makes it possible to develop good communication with customers and this will allow hotels to respond to customers' requests. Consequently, more adoption of CRM functionality results in better marketing practices, sales automation, and customer services that assist the firm to deal with customer relations, to attract new clients, to generate loyalty among the existing ones, and develop long-time relations with the customers (Eid, 2007).

Limitations and Future Research Directions
As with any empirical study, some limitations resulted from trade-off decisions in research design can be identified. In light of this, this study suggests some future research directions for studying CRM integration.
Firstly, this study has provided an innovative step on the prediction assessing influence of CRM integration on organization performance in the context of Jordanian bank industry. The research framework investigated CRM integration for Organizational performance in Jordanian bank industry.
Secondly, our study was conducted in the Bank industry in Jordan only. This implies that the generalizibility of this study's findings is limited to the bank industry in Jordan and may not be applicable to other markets without further validation. A fruitful area of future research is to replicate our modified scale of CRM integration in other industries (e.g. tourism, telecommunications, and even manufacturing) in Jordan and other developing and developed countries to examine the generalizibility of our modified CRM integration scale.
Thirdly, this study has investigated the direct relationship between CRM integration and financial performance in Bank industry in Jordan. The major focus of this study was on CRM integration from the organizational performance and marketing perspectives. A valuable area of future research is to examine interactions between other dimensions of CRM integration and other functional areas of business and examine how they affect performance. Future studies should examine the moderating effect of environmental factors (e.g. market turbulence, competitive hostility, and market growth) on the association between CRM and financial performance (Sin et al., 2005, Al-Weshah et al, 2018. Fourthly, data for this study were collected by using a key informant approach. Although managers as key informants are adequate sources for reliable and valid data (Sin et al., 2005), the information about the level of CRM generated by a bank is not the only source of information. Clearly, it is important to compare the degree of CRM as assessed by internal information (e.g. managers' responses to questionnaires, as we have done in this study) with the level of CRM as perceived by the bank's customers, competitors, and distributors. This is possibly another challenging area of future research in CRM.
Finally, an empirical investigation of the integration of CRM and their effect on customer satisfaction and loyalty from customers perspectives could be a valuable research area in the future especially in developing countries, e.g. Jordan and the Middle East (Al-Weshah et al, 2018).
Since the current study did not investigate the mediating role of customer relationship management integration on other variables, future research should study to what extent customer relationship management mediates the relationship between people, technological and process factors and an outcome such as performance.

Conclusions
This study has provided some exploratory information to understand the relationship between CRM integration and organizational performance. Findings of this study suggest that CRM faucationllty has a positive influence on organizational performance. The finding gives managers and academicians a much stronger basis than intuition and success factors, for recommending CRM strategies to ensure high level of Organizational performance. In addition, bank managers should strive to improve CRM integration in their efforts to increase and improve organizational performance.