Effect Of Organizational Culture And Leadership On Customer Relationship Management Implementation In International Banks Operating In Tanzania

by Zainabu .P. Fata

Abstract

The aim of this research is to investigate on the effect of organizational culture and Leadership on CRM implementation in international banks operating in Tanzania. Past studies have talked about the effect of leadership or impact culture on implementation of Customer Relationship Management (CRM) structures.

CRM as a modern marketing reforms concept representing the entire process of creating and maintaining profitable customer relationship through the provision of super customer value as well as meeting their needs. Even though customer care has been a great department in maintaining a healthy customer relationship, CRM is essential for a company, especially in implementing a client-focused structure that maximizes the value of the clients’ expectations from the organization.

CRM also enables a firm to make a business strategy based on information that is received from the customers. However, previous studies do not observe the combined effect of leadership and culture on implementation of CRM and also, how leadership and culture have an effect on each other. This study targets to explore how CRM implementation is impacted by using the organizational Culture and leadership management, four major international banks operating in Tanzania has been used as case study. Study has managed to identify leadership aspects such as leadership style, top management commitment and support, coordination and corroboration as major leadership issues affecting implementation of CRM at Barclays bank, Standard Chartered, Stanbic and Citibank banks. The findings further illustrate that organizations need to address the leadership issues by promoting an engaging leadership style, commitment and involvement of top management and coordination as major factors that can promote CRM implementation.

Further, the findings identified culture issues such as national culture, coordination and corroboration as major cultural issues that affect implementation of CRM. This study proposes that based on the four case studies, organizations should be in line with the national culture, promote a corroboration and engagement culture in order to address potential conflict.

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