Exploring the mediating effect of banking innovation in the relationship between CRM practice and performance of commercial bank of Ethiopia
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Date
2019-10
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A.A.U
Abstract
The main purpose of this study was to examine the mediating effect of banking innovation on the relationship between customer relationship management and performance of commercial bank of Ethiopia. The researcher used the ongoing activities of components of CRM i.e. focusing on key customer, organizing around CRM and incorporating CRM-based Technology as independent variables to examine their effect on both banking innovation and performance. The researcher was applied explanatory research design to meet the research objectives. In this research purposive sampling and then random sampling techniques was applied to get appropriate representative sample from the population of the study which was employees of 287 branches of CBE located in Addis Ababa. The researcher collected data from 64 branches of north districts of CBE located in Addis Ababa city using self-administered questionnaire. A total of 300 questionnaires were distributed to target respondents and out of the total 162 questionnaires were collected (54 %). The collected data was analyzed using statistical package for social science (SPSS) version1.0. The descriptive statistics (mean, standard deviation) and inferential statistics (correlation and regression) were used to described demographic characteristics of the respondents, to test hypothesis and to answer research questions. The statistical result revealed that banking innovation mediates the relationship between CRM and performance of CBE. The finding also exposed that not all dimensions of CRM has significant effect on the relationship; only focusing on key customer and incorporating CRM-based Technology dimension of independent variable has significant effect on banking innovation and performance.
Description
A thesis submitted to Addis Ababa university, college of business and economics department of management in requirements for master of business administration (MBA)
Keywords
Banking innovation, Customer relationship management, Performance