The effect of servant leadership to customer relationship management implementation.
Knowledge management (Analysis)
Customer relationship management (Analysis)
Chen, Li-Yueh
Barnes, F. Barry
Pub Date:
Name: Journal of International Business and Economics Publisher: International Academy of Business and Economics Audience: Academic Format: Magazine/Journal Subject: Business, international; Computers Copyright: COPYRIGHT 2008 International Academy of Business and Economics ISSN: 1544-8037
Date: Jan, 2008 Source Volume: 8 Source Issue: 1
Computer Subject: Customer relationship management; Knowledge management
Geographic Scope: United States Geographic Code: 1USA United States

Accession Number:
Full Text:

This study is examined how Servant Leadership behaviors influence Customer Relationship Management implementation. Servant Leadership (Greenleaf, 1977) has received substantial attention in the contemporary leadership field. Researchers have focused on identifying the characteristics and value of Servant Leadership behaviors, and the operational definitions and scales developed by Barbuto and Wheeler (2006) were applied in this study. Customer Relationship Management has also received wide attention in business and academe, and researchers Sin, Tse and Yim (2005) developed a multidimensional construct for CRM that were adopted for this study. With the development of tourism a goal of the Taiwanese government, questionnaires were administered in a five-star hotel in Taichung City and results of the hypothesis test showed that the Servant Leadership behaviors were found to be significant predictors of implementation of Customer Relationship Management within the case hotel.

Keywords: Servant leadership, Stewardship, Customer relationship management, knowledge management


According to the administration blueprint of Taiwan's government, "Challenge 2008: The important plan for country development," Taiwan will be developed as an "Island of Tourism". One of the country's development plans is to increase the number of tourists visiting Taiwan; the goal is to have five million tourists visit Taiwan in 2008. This plan will have a major growth impact on the hotel industry. According to data from the Tourism Bureau (Tourism Bureau Website, Dec. 2007), this plan means the hotel industry will experience an increase of more than 13,000 hotel rooms and total investment in this industry will exceed $3 billion within next three years. Workers will be needed to meet the demands of this growing industry. Therefore, the importance of managing human resource and customer relationships will be key. To face this challenge, it will be necessary to consider managers' leadership styles and customer relationships.

Peter Drucker (1954) proposed that "the customer is the foundation of a business and keeps it in existence" (p. 37). In 2004, the American Marketing Association defined marketing as "an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders".

Customer Relationship Management (CRM), therefore, has been widely regarded as a company activity related to developing and retaining customers through increased satisfaction and loyalty. Parvatiyar and Sheth (2001) defined CRM as "a comprehensive strategy and process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer" (p. 5). They explained that "it involves the integration of marketing, sales, customer service, and supply-chain functions of the organization to achieve greater efficiencies and effectiveness in delivering customer value" (p. 5). According to these definitions, a customer focused culture for successfully implementing Customer Relationship Management needs to be developed by the leadership and through the design of formal systems of the company, as well as the myths and stories that are created within the firm (Francis, 2004).

A service-orientated philosophy of and approach to leadership is a manifestation of and an antecedent to enabling a wise organization. Servant leaders have been described as capable of managing the various paradoxes of decisions, which may foster the development of organizational wisdom (Srivastva & Cooperrider, 1998). The concept of Servant Leadership, which was formulated by Robert Greenleaf (1977), has received substantial attention in the contemporary leadership field. In Greenleaf's (1969, 1977) opinion, leadership must primarily meet the needs of others. The focus of servant leadership is on others, rather than upon one's self, and on understanding the role of the leader as a servant (Greenleaf, 1977). Additionally, Wilkes (1996) indicated that "servant leaders give up personal rights to find greatness in service to others" (p. 15). In fact, servant leadership has been advocated and practiced in some of America's most successful companies (Levering & Moskowitz, 2000). For instance, Southwest Airlines, Synovus Financial Corporation, and TDIndustries, which where all listed in Fortune's January 2000 "Top 100 Best Companies to Work for in America," have reported they emphasize Servant Leadership practices. These same three companies subsequently were ranked also among Fortune's 2001 "Top Ten Employers". Researchers (Stone, Russell & Patterson, 2004; Bennis, 2002; Russell & Stone, 2002), therefore, have suggested that servant leadership practices should be considered by the leaders of today's organizations.

According to Ngai's (2005) study on customer relationship management, 205 articles were reviewed and classified into five broad categories, which were: CRM, Marketing, Sales, Service and Support, and IT and IS. Only one article (Galbreath & Rogers, 1999) referred to the importance of leaders implementing customer relationship management. Studies on servant leadership, on the other hand, have focused mostly on the measurement instrument (Page & Wong, 2000; Sendjaya & Sarros, 2002; Barbuto & Wheeler, 2006), the leadership characteristic itself (Stone, Russell & Patterson, 2004; Humphreys, 2005), and the outcome of employee behaviors such as job satisfaction, organizational commitment, and trust (Dingman, 2006; Drury, 2004; Errol & Bruce, 2005). No studies, to date, have addressed the relationship between servant leadership and customer relationship management implementation. This study attempts to provide some viewpoints for understanding this relationship and to provide some preliminary answers to this unanswered question.


2.1 Servant Leadership

The term "Servant Leadership" was first coined by Robert Greenleaf (1904-1990) in a 1970 essay titled "The Servant as Leader". Greenleaf posited that the servant leader is a servant first. He explained that Servant Leadership begins with the natural feeling that one wants to serve first. Then conscious choice brings one to aspire to lead. The difference manifests itself in care taken by the servant--first to make sure that other people's priority needs are being served. The best test is: Do those served grow as persons; do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants? (1970, p. 12).

Larry Spears (2004), CEO of the Greenleaf Center, extended Greenleaf's work by articulating 10 characteristics of a servant leader as follows:

1. Listening: The servant leader seeks to identify the will of a group and helps clarify that will.

2. Empathy: The servant leader strives to understand and empathize with others. People need to be accepted and recognized for their special and unique spirits.

3. Healing: The servant leader has the potential for healing self and others.

4. Awareness: The servant leader is strengthened by general awareness and especially self-awareness.

5. Persuasion: The servant leader relies on persuasion rather than positional authority in decision making within an organization.

6. Conceptualization: The servant leader seeks to nurture their abilities to delicately balance between conceptual thinking and a day-today focused approach.

7. Foresight: The servant leader has the ability to understand the lessons of the past and the realities of the present and also foresee the likely outcome of a situation in the future.

8. Stewardship: The first and foremost commitment for a servant leader is to serve the needs of others.

9. Commitment to the growth of people: The servant leader is deeply committed to the growth of each and every individual within the institution.

10. Building community: The servant leader seeks to identify some means for building community among those who work within a given institution (p. 8).

Furthermore, Russell and Stone (2002) developed a preliminary theoretical framework for categorizing and appraising the functional and accompanying attributes of servant leaders. While functional attributes are the operative qualities, characteristics, and distinctive features belonging to leaders and observed through specific leader behaviors in the workplace, the accompanying attributes appear to supplement and augment the functional attributes (See Table 1).

Recently, a framework proposed by Barbuto and Wheeler (2002) combined the 10 characteristics outlined by Spears (1995, 1998) with the dimension of servant leadership as starting with a willingness or calling to serve others as discussed in the early writings of Greenleaf. To measure their 11 characteristics of servant leadership, Barbuto and Wheeler (2006) developed operational definitions and scales. Results produced five servant leadership factors. These five dimensions of servant leadership have been adopted as the theoretical base for this study. They are as follows:

* Altruistic calling: A leader's deep-rooted desire to make a positive difference in others' lives.

* Emotional healing: A leader's commitment to and skill in fostering spiritual recovery from hardship and trauma.

* Persuasive mapping: Leaders use sound reasoning and mental frameworks. They encourage followers to visualize the organization's future and are persuasive; they offer compelling reasons to get followers to do things.

* Wisdom: Wisdom is a combination of awareness of surroundings and anticipation of consequences. Leaders that have capacity in wisdom are characteristically observant and anticipatory across most functions and settings.

* Organizational stewardship: Leaders prepare an organization to make a positive contribution to society through community development, programs, and outreach (p 318).

2.2 Customer Relationship Management

Although CRM has become widely recognized as an important business approach, there is no universally accepted definition of CRM (Ngai, 2005). However, in the marketing literature, the terms "CRM" and "Relationship marketing" are used almost interchangeably (Parvatiyar & Sheth, 2000). Berry (1983) defined relationship marketing as "attracting, maintaining and enhancing customer relationships". Christopher, Panyne, and Ballantyne (1991) proposed that "the relationship marketing concept is emerging as a new focal point, integrating customer service and quality with a market orientation" (p. 32). CRM, on the other hand, has evolved from business concepts and processes, such as relationship marketing and the increased emphasis on improving customer retention through effective management of customer relationships. Essentially CRM is based on the belief that developing a relationship with customers is the best way to get them to become loyal, and loyal customers are more profitable than non-loyal customers (Dowling, 2002, p. 88). Kincaid (2003) viewed CRM as "the strategic use of information, processes, technology, and people to manage the customer's relationship with your company (Marketing, Sales, Service, and Support) across the whole customer life cycle" (p. 41).

Based on prior related literature and in-depth interviews with CRM managers, researchers Sin, Tse and Yim (2005) developed a multidimensional construct for CRM that consists of four broad behavioral components: (1) key customer focus, (2) CRM organization, (3) knowledge management, and (4) technology-based CRM. These four dimensions of CRM have been adopted as part of the theoretical base for this study and are as follows:

1. Key customer focus: This involves an overwhelming customer-centric focus (Vandermerwe, 2004), and continuously delivering superior and added value to key customers through customized marketing. This dimension includes customer-centric marketing, key customer lifetime value identification, personalization, and interactive co-creation marketing.

2. CRM organization: The key considerations for successfully organizing the whole firm around CRM should involve organizational structure, organization-wide commitment of resources, and human resources management.

3. Knowledge management: Davenport, Harris, and Kohli (2001) indicated that, to build good relationships with customers, it is necessary to serve each customer in her/his preferred way. Therefore, the management of customer knowledge should be emphasized. Key facets of "knowledge management" include knowledge learning and generation, knowledge dissemination and sharing, and knowledge responsiveness.

4. Technology-based CRM: This involves utilizing computer technologies in building relationships, leveraging existing technology and rigorously linking technology deployment to targeted business initiatives (Harding, Cheifetz, DeAngelo, & Ziegler, 2004).

2.3 Servant Leadership & Customer Relationship Management

Is there a relationship between Servant Leadership and Customer Relationship Management? Do servant leaders facilitate implementation of Customer Relationship Management successfully? At present, there is a lack of academic research on this relationship, and this paper will provide some new viewpoints for understanding this relationship which is summarized in Table 2. Based upon these viewpoints, this study proposes that servant leadership behaviors do have the significant relationships on the implementation of customer relationship management with these hypotheses:

H1a: Leaders' Servant Leadership behavior is positively correlated with the dimension of key customer focus of the Customer Relationship Management implementation.

H1b: Leaders' Servant Leadership behavior is positively correlated with the dimension of CRM organization of the Customer Relationship Management implementation.

H1c: Leaders' Servant Leadership behavior is positively correlated with the dimension of knowledge management of the Customer Relationship Management implementation.

H1d: Leaders' Servant Leadership behavior is positively correlated with the dimension of technology-based CRM of the Customer Relationship Management implementation.

2.4 Framework for the Study & Background of the Problem

The setting of this study is an international tourist hotel located in Taichung City in Taiwan. The hotel is a 306-room five-star hotel offering exceptional and personalized service in an atmosphere of elegant refinement. The hotel's food and beverage facilities include three restaurants, two bars, one garden coffee shop, business center, and banqueting area.

Taichung City is expected to become a highly competitive markets for the hotel industry due to the following three developments: (1) The merger of with Taichung County with Taichung City will result in Taichung City becoming the third largest City in Taiwan, (2) The addition of Central Taiwan Science Park, which was constructed in 2003, to Taichung City and Taichung County, and (3) The city's airport now offers direct flights to/from China.

There are plans now for six international tourist hotels to be constructed in the Taichung City. In fact, according to data from the Tourism Bureau (Tourism Bureau Website, Dec. 2007), three new international tourist hotels will be constructed in the city over the next three years. Taichung City, however, is a difficult competitive business environment for the hotel industry. The implementation of customer relationship management for acquiring, retaining, and partnering with customers will become more important for the hotel industry as it faces this competitive environment. Studying the importance of the relationship between Servant Leadership and implementation of Customer Relationship Management is the objective of this study.


3.1 Sample and Data Collection

Employees who work in the room department and food and beverage department of the case hotel were the sample population for this study. As the front office and restaurant staffs would those to face customers most directly, these employees were chosen for this survey. The total number of employees for these two groups was 94, and data collection involved a series of communications consisting of emails, phone calls, and face-to-face meetings conducted over a one-month period.

3.2 Assessment Instrument

To the extent possible, existing scales were used. The instrument for assessing servant leadership was adopted from the 23-item scale of Barbuto and Wheeler (2006). The reliability of servant leadership was found to be 0.90. The instrument for measuring implementation of customer relationship management was adopted from the 18-item scale of Sin, Tse and Yim (2005). These 18 items were associated with four broad behavioral components: 1) key customer focus, 2) CRM organization, 3) knowledge management, and 4) technology-based CRM. The reliabilities of customer relationship management implementation were found to be 0.81, 0.76, 0.76, and 0.83 respectively. Table 3 gives the reliabilities and correlations of the dimensions.


4.1 Correlation analysis

Five dimensions were used to test the hypotheses and answer the research questions. The correlation analysis was performed to identify aspects of the relationships among these dimensions. Table 3 indicates that all correlations among study variables are significant. Specially, servant leadership is significantly and positively correlated with key customer focus, CRM organization, technology-based CRM.

4.2 The Descriptive Statistics Analysis

Twenty-three items are included in the measurement of servant leadership (Barbuto & Wheeler, 2006). Respondents were asked to describe the servant leadership behaviors of managers who are directly leading them. Due to the EFA results, 19 items were extracted (See Table 4). The five-point Likert scale, ranging from "not at all" valued as a "1" to "frequently if not always" valued as a "5," was used. Table 4 displays the means and standard deviations of nineteen items in the servant leadership. Table 4 shows that respondents view their managers as good at anticipating the consequences of decisions. The managers encourage employees to dream "big dreams" about the organization. Additionally, the respondents perceive their managers are persuasive. Furthermore, generally the respondents perceive their managers presented as the stewardship leaders.

Eighteen items are included in the measurement of customer relationship management implementation (Sin, Tse & Yim, 2005). Respondents were asked to assess how well their hotel implemented the CRM activities. The results of EFA have met with Sin, Tse and Yim's research; 12 items associated with each of four specific dimensions were extracted (See table 5). The five-point Likert scale, ranging from "strongly disagree" valued as a "1" to "strongly agree" valued as a "5," was used. Table 5 displays the means and standard deviations of twelve items in the four dimensions of customer relationship management implementation. Table 5 shows how respondents of the study perceive their hotel's focus on customer relationship management implementation. Results show that when customers want to modify a product or service, the departments in the hotel will become involved to make coordinated efforts. Hotel employees are willing to help customers in a responsive manner, and customers in the hotel can expect prompt service from employees.

4.3 Hypotheses Testing

To examine how servant leadership affects each dimension of the customer relationship management construct, regression analysis was performed. Table 6 summarizes the regression results of the hypotheses test. The result showed that servant leadership behaviors have the positive impact on key customer focus, CRM organization, knowledge management, and technology-based CRM. The dimensions of key customer focus and CRM organization were found to be most affected by servant leadership behaviors, in which the coefficient of determination, [R.sup.2] were found to be 0.418 and 0.316 respectively.


This study examined the influence of Servant Leadership on Customer Relationship Management implementation in a case hotel located in Taichung City, Taiwan. Employees who work in the front office and restaurant were surveyed. The total number of employees for these two groups was 94. The result of the hypothesis testing showed that Servant Leadership behaviors are a significant predictor of Customer Relationship Management implementation. This result has supported the viewpoints as authors mentioned earlier.

The results of this study have several implications for leaders and decision makers in today's increasingly competitive hotel industry. First, leadership behavior has an impact on how effectively implement customer relationship management within a hotel. This means that leaders and decision makers would be well advised to recognize the positive effect of servant leadership. As discussed earlier, Southwest Airlines, Synovus Financial Corporation, and TDIndustries, which where all listed in Fortune's January 2000 "Top 100 Best Companies to Work for in America," have reported they emphasize Servant Leadership practices.

A second finding shows that the items originally consisted in the dimension of organizational stewardship behavior was found to be the most significant predictor of implementation of customer relationship management. Thus, a leaders' ability to build a sense of community where people are committed to each other, learn to communicate, and address their issues can be achieved, and this allows organizations to develop sound mechanisms for sharing customer knowledge which facilitates concerted actions both intra-organizationally and inter-organizationally. A leader's ability to identify ways to build a sense of community among workers within a given institution enhances the organization's ability to collaborate, cooperate, and communicate with key customers. Additionally, a leader's ability to articulate and communicate his or her vision and to build a sense of community within the organization enables the leader to design an organizational structure with strong inter-functional coordination and inter-functional integration.

In broader terms, servant leadership behaviors are focused on the growth and development of the followers which is likely to enhance the ability of any organization to attract, retain and motivate new employees such as those needed in high growth situations like the tourism industry in Taiwan. Further, Servant Leadership behaviors are linked to successful implementation of Customer Relationship Management systems which are also critical for any organization in the competitive, global environment.

Finally, servant leadership behaviors and successful implementation of customer relationship management systems can be beneficial to leaders in the US and Europe who are faced with large numbers of Generation Y individuals born after 1980 entering the workforce and becoming customers. Generation Y needs and values focus on making a difference in their work and in their influence on society, both of which can be supported by servant leadership behaviors and successful CRM.

Although the relationship between servant leadership and customer relationship management implementation was examined and supported, the sample was limited to only one 5-star hotel in Taiwan with a sample population of only 94. This offers future research many opportunities to examine this important relationship in other industries, other cultures, and with larger sample populations.

Li-Yueh Chen, Ming Dao University, Taiwan

F. Barry Barnes, Nova Southeastern University, USA


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Li-Yueh Chen, Ming Dao University, Taiwan

F. Barry Barnes, Nova Southeastern University, USA


Dr. Li-Yueh Chen is an Assistant Professor at the Department of Hospitality Management at Ming Dao University in Taiwan. He earned DBA degree from Nova Southeastern University and teaches undergraduate-level course in marketing management, consumer behavior, customer relationship management, and marketing research. His research interests are leadership behaviors, customer relationship management, marketing performance, and knowledge management.

Functional attributes       Accompanying attributes

1. Vision                   1. Communication
2. Honesty                  2. Credibility
3. Integrity                3. Competence
4. Trust                    4. Stewardship
5. Service                  5. Visibility
6. Modeling                 6. Influence
7. Pioneering               7. Persuasion
8. Appreciation of others   8. Listening
9. Empowerment              9. Encouragement
                            10. Teaching
                            11. Delegation


CRM                Servant Leadership

Key customer       Leaders use foresight to plan for the future of
focus              the organization and its employees. A leader's
                   awareness is dependent upon the leader's ability
                   to search for cues in the environment. Thus,
                   leaders also select key customers who are of
                   strategic significance. A CRM-oriented company
                   should make every effort to understand their
                   customers' needs and wants, which is crucial to
                   developing strong customer relationships. In
                   CRM implementation, leaders assess the lifetime
                   value of each customer individually to decide
                   whether to build a relationship with her or him
                   and practice customized marketing. These styles
                   of leadership allow organizations to rapidly
                   adjust their supplies to meet the demands of
                   customers through relationship-based marketing.

                   A leader's ability to identify ways to build a
                   sense of community among workers within a given
                   institution enhance the organization's ability
                   to collaborate, cooperate, and communicate with
                   key customers. "Credible leaders have the
                   personal habits, values, traits, and competencies
                   to engender trust and commitment from those who
                   take their direction" (Ulrich, 1996, p. 125).
                   Establishing trust is one of the most essential
                   elements of good leadership, especially Servant
                   Leadership, and is important for strengthening
                   interpersonal communications (Bennis & Nanus,
                   1997). Therefore, the characteristic of
                   credibility and trust enable leaders to
                   effectively implement interactive co-creation

CRM organization   A leader's ability to articulate and communicate
                   his or her vision and to build a sense of
                   community within the organization enables the
                   leader to design an organizational structure
                   with strong interfunctional coordination and
                   interfunctional integration.

                   Stewardship involves preparing the organization
                   and its members for great contributions to
                   society (Barbuto & Wheeler, 2002). Stewardship
                   allows the leader to best focus the
                   organization's commitment of time and resources
                   on identifying and satisfying key customer needs.

                   According to Krauss (2002), "the hardest part
                   of becoming CRM-oriented isn't the technology,
                   it's the people" (p. 5). Leaders who are skilled
                   at communication, displaying appreciation of
                   others, listening, encouragement, empowerment,
                   teaching, and delegation are able to enhance
                   the internal marketing process through market
                   training and education, internal communication,
                   reward systems, and employee involvement.

Knowledge          Leaders can enhance the capability of
management         organizational learning by conveying their
                   vision and providing learning opportunities for
                   their subordinates (Edmondson, 2002; Gilley &
                   Maycunich, 2000; Popper & Lipshitz, 2000).

                   A leaders' ability to build a sense of community
                   where people are committed to each other, learn
                   to communicate, and address their issues can be
                   achieved and allows organizations to develop
                   sound mechanisms for sharing customer knowledge
                   to facilitate concerted actions by intra-
                   organization and inter-organizations.

                   Delegation involves offering choices and
                   encouraging followers to take ownership of
                   responsibilities. This leadership behavior
                   involves knowledge responsiveness. Knowledge
                   responsiveness takes the form of acting on
                   knowledge generated and disseminated (Kohli
                   & Jaworski, 1990).

Technology-based   The leadership attribute of vision is "an ideal
CRM                and unique image of the future" (Kouzes & Posner,
                   1995, p. 95). Greenleaf (1977) used the terms
                   "foresight" and "conceptualization" to describe
                   vision. Therefore, servant leaders have a sense
                   of the unknown and an ability to foresee the
                   unforeseeable. This leadership attribute allows
                   organizations to establish a strategic vision
                   that, according to CRM calls for "information-
                   intensive strategies" for the organization
                   (p. 21).


                         Reliabilities   1         2

1 Servant leadership              0.90         1
2 Key customer focus              0.81   .646 **         1
3 CRM organization                0.76   .562 **      .281
4 Knowledge management            0.76   .396 **   .396 **
5 Technology-based CRM            0.83   .500 **   .502 **

                         3         4         5

1 Servant leadership
2 Key customer focus
3 CRM organization             1
4 Knowledge management   .356 **         1
5 Technology-based CRM   .326 **   .483 **   1

** Correlation is significant at 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).


                        Items                           Mean    SD

Servant leadership                                      3.66   0.51

This person does everything he/she can to serve me.     3.27   0.85
This person sacrifices his/her own interests to meet    3.32   0.96
  my needs.
This person goes above and beyond the call of duty      3.45   0.82
  to meet my needs.
This person is good at helping me with my emotional     3.41   0.90
This person is talented at helping me to heal           3.34   0.86
This person is one that could help me mend my hard      3.48   0.82
This person seems alert to what's happening.            3.66   0.81
This person is good at anticipating the consequences    3.89   0.84
  of decisions.
This person has great awareness of what is going on.    3.72   0.82
This person seems in touch with what's happening.       3.70   0.79
This person encourages me to dream "big dreams"         3.89   0.81
  about the organization.
This person is very persuasive.                         3.89   0.81
This person is good at convincing me to do things.      3.70   0.82
This person is gifted when it comes to persuading me.   3.77   0.86
This person believes that the organization needs to     3.75   0.89
  play a moral role in society.
This person believes that our organization needs to     3.86   0.82
  function as a community.
This person sees the organization for its potential     3.82   0.79
  to contribute to society.
This person encourages me to have a community spirit    3.84   1.03
  in the workplace.
This person is preparing the organization to make a     3.84   0.94
  positive difference in the future.


                 Dimension and Items                     Mean    SD

Key customer focus                                       3.70   0.59

Through ongoing dialogue, we work with individual key    3.57   0.79
  customers to customize our offerings.
My organization provides customized services and         3.73   0.73
  products to our key customers.
My organization makes an effort to find out what our     3.70   0.76
  key customer needs.
When my organization finds that customers would like     3.82   0.66
  to modify a product/service, the departments
  involved make coordinated efforts to do so.

CRM organization                                         3.58   0.64

My organization has the sales and marketing expertise    3.61   0.69
  and resources to succeed in CRM.
My organization has established clear business goals     3.55   0.73
  related to customer acquisition, development,
  retention, and reactivation.

Knowledge management                                     3.73   0.64

My organization provides channels to enable ongoing,     3.75   0.81
  two-way communication with our key customers and us.
Customers can expect prompt service from employees of    3.84   0.78
  my organization.
My organization has the right technical personnel to     3.59   0.76
  provide technical support for the utilization of
  computer technology in building customer

Technology-based CRM                                     3.55   0.66

My organization has the right software to serve our      3.55   0.76
My organization has the right hardware to serve our      3.50   0.79
Individual customer information is available at every    3.59   0.76
  point of contact.



Predicted variables   R      [R.sup.2]     F      Sig.

Key customer focus    .646   .418        30.150   .000

CRM organization      .562   .316        19.367   .000

Knowledge             .396   .157         7.812   .008

CRM                   .500   .250        14.031   .001


Predicted variables   Beta     t     Sig.

Key customer focus    .646   5.491   .000

CRM organization      .562   4.401   .000

Knowledge             .396   2.795   .008

CRM                   .500   3.746   .001
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