Employee´s perspective towards

organisational changeEvidence in Mekano Company

André Jönsson

Civil Engineering, master's level

2018

Luleå University of Technology

Department of Civil, Environmental and Natural Resources Engineering

Employee´s perspective towards organisational

change:

Evidence in Mekano Company

Name: André Jönsson

Program: Master of Science in Engineering Technology Industrial and Management

Engineering

Major: Industrial Marketing

Date: Spring 2018

Supervisor: Seyedeh Fatemeh Mostafavi Shirazi

Abstract

Purpose: The purpose of this research project is to examine the employees´ perspective on

the subject of a CRM implementation in SMEs.

Methodology: A 5-point Likert scale questionnaire was used to collect 51 employee

responses. All the questions were derived from previous existing literature. The questionnaire

ended with three open-ended questions and was delivered to the employees by email.

Conclusion: The main findings related to employees´ preconditions is that senior and middle

managers must be involved and support their employees during the whole change process.

Other conditions are that the system must be user-friendly and easy to learn, so that it does

not interfere too much with the employees’ daily routines.

With respect to employees’ point of view to implementing CRM this study suggest that the

new system will improve communication with current customers . Notably, few of the

employees feel anxious about the new system and do not think it will increase their current

workload.

Regarding age variances in the workforce, the research found three key points including a)

functional areas are structured around customers b) a clear communication plan will improve

change acceptance and commitment and, C) proper system training will help understand the

employees´ role throughout the implementation.

Practical Contribution: With this research, SMEs will more likely understand the importance

of employee satisfaction due to an organisational change. This research has examined the

intention of implementing a CRM system.

Theoretical contribution: This study contributes to a continued consideration regarding

organisational change by studying employees’ perspective and expanding the existing level of

knowledge.

Key words: CRM; Organisational change; Employee commitment; CRM implementation; SME

Sammanfattning

Syfte: Syftet med denna studie är att undersöka de anställdas perspektiv i termer av en CRM

implementering i SMEs.

Metod: En enkät bestående av 5-punkt Likert frågor tillsammans med avslutningsvis tre öppna

frågor användes för att samla in data. Alla frågor var inspirerade från tidigare litteratur och

forskning och levererades via email till alla anställda.

Slutsats: Toppledning och mellanchefer måste involvera samt stödja sina anställda under hela

implementationen för ett bättre förändringsbeteende. Systemet måste även vara lätt att

använda, enkelt att lära sig samt inte störa de dagliga sysslorna för mycket.

Med hänsyn till de anställdas perspektiv av att implementera CRM, denna studie föreslår att

systemet kommer förbättra kommunikationen med nuvarande kunder. Anmärkningsvärt är

att få anställda känner oro över det nya systemet och tror inte det kommer öka deras

nuvarande arbetsbelastning.

Angående åldersskillnader i arbetsstyrkan, hittade studien tre nyckelfaktorer, nämligen a)

funktionella avdelningar är strukturerade runt kunden b) en tydlig kommunikationsplan

kommer förbättra förändringsacceptans och c) tydlig systemträning kommer underlätta

anställda förstå sin roll genom implementationen.

Praktiska implikationer: Studiens praktiska bidrag är att belysa anställdas perspektiv i små och

medelstora företag och vad de behöver för att acceptera en organisationsförändring. Studien

har undersökt en kommande CRM implementation.

Teoretiska implikationer: Denna studie bidrar till fortsatt hänsyn av organisationsförändring

genom att studera de anställdas perspektiv och utöka nuvarande kunskapsnivå.

Nyckelord: CRM; Organisationsförändring; Anställdas engagemang; CRM implementering;

SME

Acknowledgements

I would like to convey my sincerest appreciation to all of whom that have helped me to finalise

this thesis. This would not be possible to finalise if it wasn’t for you. Following persons are

acknowledged and appreciated:

Seyedah Fatemeh Mostafavi Shirazi, for supporting me through the entire thesis with good

ideas to fulfil an academic qualified study.

Johan Lexhag at Mekano AB, for initiating the need of a thesis writer, supplying the survey to

the employees, and demonstrating the need of answering the survey.

Lastly, I appreciate all the responses I received and would hereby thank all the employees at

Mekano for taking time and answer my questionnaire.

Helsingborg, May 2018

André Jönsson

Table of contents

1. Introduction 1

1.1 Background....................................................................................................................... 1

1.2 Problem Discussion .......................................................................................................... 2

1.3 Research Objective and Questions .................................................................................. 4

1.3.1 Research Questions .................................................................................................. 4

2. Literature Review 5

2.1 Customer Relationship Management.......................................................................... 5

2.2 Customer Relationship Management in small and medium-sized enterprises ............... 7

2.3 Organisational Culture and CRM...................................................................................... 9

2.3.1 Preconditions for implementing a Customer Relationship Management system . 11

2.4 Summary ........................................................................................................................ 15

3. Methodology 16

3.1 Research purpose ........................................................................................................... 16

3.2 Research approach ......................................................................................................... 18

3.3 Research strategy ........................................................................................................... 19

3.4 Data collection................................................................................................................ 20

3.4.1 Questionnaire ......................................................................................................... 21

3.5 Sample selection ............................................................................................................ 22

3.6 Data analysis................................................................................................................... 22

3.6.1 Statistical Techniques ............................................................................................. 23

3.7 Reliability and validity .................................................................................................... 24

3.8 Ethical consideration ...................................................................................................... 25

3.9 Case Company ................................................................................................................ 25

3.10 Summary ...................................................................................................................... 26

4. Results 27

4.1 Introduction.................................................................................................................... 27

4.2 Demographic analysis ................................................................................................ 27

4.2.1 Demographic characteristics .................................................................................. 27

4.2.2 Ranking of preconditions for implementing CRM .............................................. 30

4.2.3 Ranking of perception for implementing CRM....................................................... 32

4.3 Reliability of scales ......................................................................................................... 33

4.4 T- test.............................................................................................................................. 34

4.4.1 T -test for preconditions ......................................................................................... 34

4.5 Open-ended analysis ...................................................................................................... 39

4.6 Summary ........................................................................................................................ 41

5. Discussion, Conclusions, and Recommendations 42

5.1 Discussion and Conclusion ............................................................................................. 42

5.2 Recommendation ........................................................................................................... 45

5.3 Limitation ....................................................................................................................... 46

5.4 Further research ............................................................................................................. 46

5.5 Practical contribution ..................................................................................................... 46

5.6 Theoretical contribution ................................................................................................ 47

6. References 48

Appendix I - Survey Questionnaire 52

Appendix II – Survey Questionnaire (Swedish Version) 59

List of Tables

Table 2.1 Frame of reference of identified preconditions

Table 3.1 Methodology of the study

Table 3.2 Summary of research strategies Adapted from Yin 2003

Table 4.1 - Gender of Respondents

Table 4.2 - Educational level of Respondents

Table 4.3 Distribution of occupation

Table 4.4 Age distribution

Table 4.5 Distribution of years of employment

Table 4.6 Mean rankings of preconditions

Table 4.7 Ranking of perception towards CRM implementation

Table 4.8 The Cronbach’s Alpha reliability of factors

Table 4.9 Mean Comparison Commitment to change

Table 4.10 Mean Comparison Organisational Culture

Table 4.11 Mean Comparison Interdepartmental and cross functional integration

Table 4.12 Mean Comparison Training

Table 4.13 Mean Comparison Communication

Table 4.14 Mean Comparison Technology

Table 4.15 Mean Comparison Top Management Support

Table 4.16” How often would you like to receive training?”

Table 4.17” What is your biggest concern related to this change implementation?”

Table 4.18” Would you like to be involved and informed in the implementation process? How?

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1. Introduction

This chapter introduces chosen research area. It starts with a broad demonstration of the area

and its background, and thereafter an explanation of identified research problem. Finally, the

chapter ends with research objective and stated research questions.

1.1 Background

In the past, relationships with customers were easier and vendors could more easily

understand its customers in terms of previous, current and future purchase intentions so that

good relationship were established (Garcia, Pacheco and Martinez, 2012). According to Garcia

et al. (2012), the difficulties of managing customer relations grew tenser because people

decided to settle in new areas and both companies and cities became bigger. Further, Garcia

et al. (2012) proclaim that companies are today striving to be more customer oriented and

increase customer knowledge as they were back in the days. Over 90% of 1500 companies

declare that they will investigate more into Customer Relationship Management (CRM) in the

nearest future (Garcia et al., 2012). Several authors state that CRM is mainly compatible for

larger enterprises, due to their larger customer catalogue, have more resources and know

how to manage risks (Ko, Hyun Kim, Kim and Woo, 2008; Garcia et al., 2012; Nguyen and

Waring, 2013).

Several authors proclaim that CRM implementations are risky and most of them tend to end

up in failure (Bull, 2003; Mendoza, Marius, Perez, and Grimán, 2007; King and Burges, 2008).

Mendoza et al. (2007) studied around 200 CRM projects and identified that only one-third of

the projects resulted in improvements regarding customer service. Mukerjee and Singh (2009)

add that researchers of CRM have identified that nearly 60 – 80% of CRM projects will

eventually lead to failure. Furthermore, this area has been investigated by consulting firms

that claim a failure rate of 70 % (Mukerjee and Singh, 2009).

CRM tend to fail due to an organisational change, little or poor understanding of CRM or the

company´s policies (Mendoza et al., 2007). According to Nguyen, Sherif, and Newby (2007),

most implementations fail due to lack of commitment from executive management, lack of

project management skills or lack of research and knowledge. Reicher and Szeghegyi (2015) ,

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as well as Nguyen and Waring (2013), declare that the tendency of implementations are not

slowing down and estimate a slight increase in the nearest future. Although several

researchers claim that CRM is mainly adapted for larger enterprises, Garcia et al. (2012) do

not perceive this as a problem for Small and Medium-sized Enterprises (SME). If SMEs decide

to adopt a CRM strategy, they can easier manage and administer a proper customer catalogue

(Garcia et al., 2012).

As a result of an ever-increasing competition and an open European market, companies have

to react faster because of increased customer demand. According to Reicher and Szeghegyi

(2015), an increasing competition is a challenge for companies with insufficient resources and

capital. Reicher and Szeghegyi (2015), highlight the importance for SMEs to consider a CRM

solution so that they can manage their customers at a higher service level. In addition, CRM

project implementations have experienced a high tendency of failure and SMEs are not an

exception (Bull, 2003; King and Burgess, 2008; Vazifehdust, Shahnavazi, Jourshari and

Fataneh, 2012; Nguyen and Waring, 2013; Reicher and Szeghegyi, 2015). Several authors claim

that CRM is mainly adapted into larger organisations with access to more resources and a

broader customer catalogue. Thus, the research lacks investigation from an SME´s

perspective. CRM implementations are characterised by a high rate of complexity and hence

a tendency of failure. Still, several researchers claim its popularity and estimate an increase in

the nearest future.

1.2 Problem Discussion

According to Mendoza et al. (2007), organisational change is the most dominant failure factor,

due to adopting a new business strategy, change of the organisational environment, new ways

of working and aligning the change with existing culture. CRM is an enterprise technology

which requires a change of the organisational culture (Chen and Popovich, 2003). Further,

Chen and Popovich (2003) proclaim that business processes and technology are essential

pillars for CRM success, but without employee acceptance, it will not succeed. According to

King and Burgess (2008), an unsuccessful CRM system may lead the organisation to opposite

direction with a staff unwilling to use the new technology and share data with colleagues. To

mitigate the risks of failure and unsuccessful implementation, managers of SMEs must inspire

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a culture for employee´ involvement and acceptance where they can contribute and are

perceived as an asset for the company (Nguyen and Waring, 2013). Employee involvement is

crucial for projects that relate to organisational change (Nguyen and Waring, 2013). The

likelihood that a CRM system will be implemented and used depends highly on how much

employees and managers are dedicated and committed to the process (Bull, 2003; Shum, Bove

and Auh, 2008; Nguyen and Waring, 2013). According to Nguyen and Waring (2013)

adaptation of a CRM system requires management and employee involvement, a culture

willing to learn and appropriate IT capabilities.

Shum et al. (2008) investigated three of the top five best banks in New Zealand which had

adopted a CRM strategy with all different approaches. The most successful project put more

emphasis on change management and critical factors of implementation which led to no

surprises occurred at the end of each CRM implementation phase and higher customer

satisfaction. Since CRM implementation will change the status quo, an individual will more

likely resist to the change (Shum et al., 2008). Further, the authors state that change

management during implementation involves team-building exercises, training and cultivating

a culture that is ready for a change. Shum et al. (2008) further highlight the importance of

communicating a clear vision, the effect of intended changes and the progress of the project.

Consequently, the likelihood of committed and involved employees will increase and in turn

improve change acceptance (ibid).

Aladwani (2001), as well as Neville and Mohally (2004), add to Shum et al. (2008) that

communication and information are essential factors to change the commitment of potential

users. Due to a comparison between two project implementations, Neville and Mohally

(2004) conclude that the unsuccessful project failed because of poor employee involvement,

poor communication, lack of a clear business vision and no assigned change management

team. Employee involvement is highly a critical success factor for CRM implementation (Shum

et al., 2008).

Although several studies have investigated failure or success factors of implementing a CRM

system in larger organisations, there is a gap in SMEs due to less research on the subject of

CRM in SMEs. A common finding is that implementing CRM without sufficient knowledge

about change management and not involving the employees in the implementation phase will

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most likely result in project failure. So, by investigating the employees´ perspective from SMEs,

CRM managers will have a guideline how to involve their employees in the project

implementation, which will provide a knowledge how to manage employee resistance of

organisational change. Therefore, the purpose of this research project is to examine the

employees´ perspective on the subject of a CRM implementation in SMEs .

1.3 Research Objective and Questions

Implementing a CRM system has mainly been conducted in larger enterprises with a high

tendency of failure because of less involved employees in the large organisational change. Due

to the knowledge gap of implementing CRM in SMEs, this study will focus on implementation

in SMEs and how internal employees will perceive the organisational change. Thus, the

research purpose is declared as:

The purpose of this research project is to examine the employees´ perspective on the subject

of a CRM implementation in SMEs.

1.3.1 Research Questions

The central aim of this study is to answer above stated research purpose. To accomplish the

purpose, three research questions have been established. Due to establishing a research

question, the research will have a greater chance of focusing the scope of the research and

hence achieve its purpose. Formulated research questions are stated below.

Research Question 1

What are the pre-conditions for implementing a CRM system in small and medium-sized

enterprises, from employee´s view?

Research Question 2

What are the employees´ perception towards an organisational change by a CRM

implementation?

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Research Question 3

Is there any difference between employee’ perspectives, depending on age, about

preconditions for implementing CRM?

2. Literature Review

This chapter discusses, and reviews studied literature, so that identified problem is

understood. Since this project is of a deductive approach, already established theory is

analysed to understand identified literature gap. The literature review encompasses Customer

Relationship Management, Customer Relationship Management in small and medium-sized

enterprises, Organisational Culture and Preconditions for implementing a Customer

Relationship Management system.

2.1 Customer Relationship Management

Customer Relationship Management (CRM) is ambiguous and hence there exist different

definitions (Mukerjee and Singh, 2009; Nguyen and Waring, 2013). Chang (2007) define CRM

as “the combination of marketing efforts, business processes and technology that allows the

firm to understand its customers from multiple perspectives” (p.485). In line with Chang (2007),

Mukerjee and Singh (2009, p. 66) define CRM as “a business strategy designed to optimize

profitability, revenue and customer satisfaction by organizing the enterprise around customer

segments, fostering customer-centric behaviors and implementing customer centric

processes”. Both definitions of CRM emphasise the importance of a customer-centric

enterprise with the aim to provide satisfied customers. The definition in this research will

therefore be a combination of above definitions, and CRM is hereby defined as “an enterprise

strategy that combines business processes, technology, and marketing efforts to increase

customer knowledge from various inputs. CRM contributes to satisfy customers and increase

profitability as well as revenue, by adopting a customer-oriented enterprise”.

CRM has been around for nearly 30 years and is more of an evolution than a revolution

(Özgener and İraz, 2006; Fazlzadeh, Tabrizi and Mahboobi, 2011). Alshawi, Missi, and Irani

(2011) add that CRM was previously only considered by larger enterprises, but today more

SMEs are willing to adopt a CRM system to improve their competitive advantage. CRM was

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originated from Relationship Marketing (RM), which means a paradigm change from customer

acquisition to more focus on customer retention via efficient relationships (Bull, 2003; Chen

and Popovich, 2003; Zineldin, 2006; Mai, Perry and Loh, 2014; Cambra-Fierro, Centeno,

Olavarria and Vazquez-Carrasco, 2017). Relationship Marketing is defined as “attracting,

maintaining and – in multi-service organizations – enhancing customer relationships”

(Zineldin, 2006, p. 431). Nguyen and Waring (2013) add that CRM can be perceived as an

extension of RM, by exploiting information technology (IT) to establish significant customer

relationships. Consequently, the approach has changed from customer acquisition to

customer retention (Winer, 2001). Customer retention is defined as “propensity of customer

to stay with their service provider” (Alamgir and Uddin, 2017, p. 78).

The popularity of CRM has increased since organisations understand the value of customer

retention, customer knowledge and customer relationships (Nguyen and Waring, 2013). Due

to an intense market competition and less customer loyalty, several companies face

challenges to acquire new customers (Fazlzadeh et al., 2011; Alamgir and Uddin, 2017). Hence,

companies need to focus more on current customers by reorganising its internal activities

(Alamgir and Uddin, 2017). Acquiring new customers is more resource expensive than it is to

retain current customers (Chang, 2007; Eid, 2007; Fazlzadeh et al., 2011). In addition, several

researchers state that a 5% increase of customer retention will significantly improve the

company´s profitability (Winer, 2001; Chen and Popovich, 2003; Zineldin, 2006; Chang, 2007;

Eid, 2007). Consequently, the literature shows that companies are today more focused on

retaining customers since customer acquisition is more expensive and time-consuming.

Companies did previously mainly focus on their products and services, which has today

changed with more attention on the customers (Chen and Popovich, 2003; Neville and

Mohally, 2004; Chang, 2007; Fazlzadeh et al., 2011). A CRM implementation requires input

and collaboration from several functions such as sales, marketing, and information system. It

is not enough to only implement an IT system, companies need to consider essential changes

in business processes and the organisational culture (Chang, 2007). Since CRM affects several

departments, it is important to establish a common holistic view of the customer in the entire

organisation (Neville and Mohally, 2004; Zineldin, 2006). Consequently, companies need to

adopt a cross-functional approach, where the organisational culture supports collaboration

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and assistance between departments (Chen and Popovich, 2003; Fazlzadeh et al., 2011). A

successful CRM implementation involves cultural changes as well as usage of a new business

system. Previous literature highlights the importance of a supportive and collaborative

environment.

Implementation of a CRM system needs an extensive change of the organisational structure,

training of employees, reward systems and a proper IT support (Chang, 2007). Chen and

Popovich (2003), as well as Eid (2007), add that it is the individual employee that is the building

foundation of CRM. Studies on CRM have mainly been conducted on external CRM, with the

aim of acquiring and retaining the best customers (Mai et al., 2014). On the other hand,

Internal CRM which relates to employee acquisition, employee retention and how their

behaviour can be improved, has not been well examined. External and internal CRM are well

connected, and a successful internal CRM will most likely contribute to the success of an

external CRM (Mai et al., 2014). With more emphasis on the internal individual employee, the

CRM system will more likely succeed. It is decisively the individual employee that uses the

system and will determine a successful implementation.

2.2 Customer Relationship Management in small and medium-sized

enterprises

Due to improvements in information and communication technologies (ICT) and an intense

global competition, companies need to pay more attention by managing customer relations

(Özgener and İraz, 2006; Fazlzadeh et al., 2011). As a survival tactic, several SMEs have

implemented a CRM system with a customer-oriented approach (Özgener and İraz, 2006;

Alshawi et al., 2011; Fazlzadeh et al., 2011; Xu, 2018). Consequently, customer retention is

crucial for SMEs due to their lack of resources. It is therefore vital that SMEs satisfy their

customers´ needs, or they will lose customers to their competitors (Fazlzadeh et al., 2011;

Newby, Nguyen and Waring, 2014; Özgener and İraz, 2006). SMEs are defined as enterprises

with no more than 250 employees and a turnover rate of less than € 50 million (OECD, 2004).

CRM was previously mainly designed for larger organisations instead of SMEs since they have

a proper risk management, appropriate resources, and a strong infrastructure (Maguire, Koh,

8

and Magrys, 2007; Harrigan, Ramsey and Ibbotson, 2009; Alshawi et al., 2011; Newby et al.,

2014). Still, there are software vendors that have identified the benefits of CRM in SMEs and

try to present a set of CRM software aligned to SMEs (Alshawi et al.,2011). CRM has been

adopted in a slower rate in SMEs due to their unwillingness to take risks concerning new

investments such as information technologies (IT) applications, less resource capabilities and

they do probably already have a closer customer relationship since a smaller customer base.

CRM can assist SMEs by providing a technology that will easier manage their customer

relations (Nguyen and Waring, 2013; Newby et al., 2014). By adapting CRM in larger

enterprises as well as SMEs, the literature has shown that CRM can benefit larger enterprises

as well as SMEs.

CRM is a tool in which SMEs can gain competitive advantage and improve their business

performance (Nguyen and Waring, 2013; Newby et al., 2014). SMEs are characterised as a

centralised organisation where the top managers´ values, attitudes, and personality are

important factors in business decisions. As the top managers increase knowledge about IT, the

intention of adoption increases and hence the likelihood of a successful implementation

(Nguyen and Waring, 2013).

Although top management is a factor of business success, it is the involvement and knowledge

of the individual employee that form a successful IT adoption (Nguyen and Waring, 2013).

Initiating a CRM adoption requires that each individual employee understand the purpose, the

vision, their individual contribution and their specific role in the adoption process (Chen and

Popovich, 2003; Nguyen and Waring, 2013). The age of the employee and their respective

profession are both affecting to which the degree an organisational change is accepted

(Iverson 1996). Consequently, younger employees tend to accept changes more than older

employees (ibid). As stated literature concludes, a CRM implementation is dependent on the

acceptance of the individual employee. Therefore, managers must encourage employee

involvement, demonstrate how they can contribute and explain the intention and vision of

the new system.

CRM is a complicated and holistic process, which involve an integration of new IT and a change

of current business processes (Bull, 2003). Due to its complexity, several researchers claim

that CRM implementations are expected to end up in failure (Bull, 2003; Nguyen and Waring,

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2013; Newby et al., 2014). Nguyen and Waring (2013) say that the implementations do not

fail because of a poor CRM system, but the organisation´s tendency to adapt to changed

processes. To accept changing processes, it is essential that managers reflect a supportive and

optimistic attitude and involve employees in the adoption process (Nguyen and Waring, 2013).

The literature implies that CRM must be aligned within the organisational culture and support

employee acceptance. Following chapter explains how CRM affects the organisational culture,

what employees are requesting to accept the change and their perception of upcoming

change.

2.3 Organisational Culture and CRM

The organisational culture and its effect on CRM have been investigated by several

researchers (Chen and Popovich, 2003; Buttle and Maklan, 2015; Rahimi, 2017). Hofstede

(1984, p. 21) defines organisational culture as “the collective programming of the mind which

distinguishes the members of one human group from another”. Smit, Dellemijn and Silvius

(2012, p. 3) define organisational culture as “the way we do and think about things around

here”. Buttle and Maklan (2015, p. 368) provide the definition as “a pattern of shared values

and beliefs that help individuals understand organizational functioning and thus provide them

with norms for behaviours in the organization”. While these articles are written some years

ago, they do all focus on internal values and norms that distinguish the organisation from

another. Further, this study has adopted the definition provided by Buttle and Maklan (2015,

p. 368).

Since every stage of; from planning to execution of a CRM technology investment involves

people, organisational culture will have an important effect on the success of CRM (Iriana,

Buttle and Ang, 2013). If an organisation does not provide a proper organisational culture, the

CRM system will eventually lead to failure (ibid). A major contributor to a successful CRM

system is to consider the firm´s organisational culture which focuses on a customer-oriented

approach and involves employees in teamwork and participation (Rahimi, 2017).

An organisation that is willing to adopt a risk-taking environment can create empowered and

innovative employees that acts for the customers’ best interest and hence an improved CRM

outcome (Iriana et al., 2013; Rahimi and Gunlu, 2016; Rahimi, 2017). An organisation that

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focuses on cross-functional teams, customer-focused behaviour, adaptive and responsive

attitudes to changes, reward employees based on performance and have developed a degree

of innovation and risk-taking can promote a successful CRM implementation (Rahimi and

Gunly, 2016; Rahimi, 2017).

Organisational culture encompasses four cultures namely, adhocracy, hierarchy, clan, and

market culture where adhocracy has the strongest correlation with CRM success (Iriana et al.,

2013; Buttle and Maklan, 2015). The adhocracy culture encourages the organisation to accept

technological changes, entrepreneurship and adapt to an external oriented approach (ibid).

Hierarchy culture is not a supportive culture of technological enthusiasm and the clan culture

is not well correlated with market effectiveness (Iriana et al., 2013). Regarding the market

culture, Iriana et al. (2013) found correlations with good business performance.

According to Iriana et al. (2013) as well as Rahimi and Gunlu (2016), among those companies

with a successful CRM implementation, most of them addressed cultural changes whereas

those that failed did not. A successful CRM implementation requires an organisational culture

that supports employees to accept new attitudes, processes and how to adopt these changes

(Mendoza et al., 2006). An organisation´s objectives and its desire to accomplish its purposes

are determined by the organisational culture (Chang, Park and Chaiy, 2010). Therefore, Chang

et al. (2010) highlight the importance of an organisational culture that is centred around its

customers, encourage employees to prioritise customer relations as a priceless resource and

hence take advantage of CRM technology to maintain good customer relations. Galbreath and

Rogers (1999) discovered that companies with an adaptive and external-focused culture,

could easily fulfil customer expectations and achieve better results in terms of revenue,

employment growth, net income, and stock price growth.

Employees that do not have enough information and knowledge on how to work with and

apply CRM will hinder a successful CRM outcome (Shang and Lin, 2010). Therefore, Shang and

Lin (2010) suggest that organisations need to collaborate between departments and conclude

that the organisation´s environment is a key factor for a successful CRM. To fulfil satisfied

customers, it is vital to meet employees’ expectations (Eichorn, 2004). Employees that are

affected and committed to the organisation will most likely attend the organisation´s activities

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and pursue the organisation´s goals with a wish to stay in the organisation (Rhoades,

Eisenberger and Armeli, 2001).

Rhoades et al. (2001) say that employees create commitment when they can identify

themselves with the organisation and feel this is a place where they belong. By integrating the

CRM into the organisational culture, the literature has shown that a successful

implementation depends how well employees support the system. Employees that are

positive and committed to the organisation, have more tendency to accept the new system

and work for the organisation´s purpose. Therefore, organisations must strive to fulfil satisfied

and committed employees. Following chapter will provide a deeper understanding of how

internal employees can be satisfied and committed to the organisation.

2.3.1 Preconditions for implementing a Customer Relationship Management

system

Change will never stop disrupting the way organisations do work, therefore managing and

adapting to those changes are important tasks for managers (Turner, Parish, Cadwallader and

Busch, 2008). Organisational changes are not only affecting the organisation, but the

individual employee as well (Vakola and Nikolau, 2005). Nevelli and Mohally (2004), add that

change is a requirement for future growth in a competitive landscape. Managers will always

face challenges regarding organisational changes and how to take advantage of new ideas

(Nevelli and Mohally, 2004).

Organisational changes are disrupting the status quo and “the way things are done in here”

which results in individual insecurity and anxiety because of a new occurred situation (Vakola

and Nikolau, 2005). Due to increased complexity in the workplace, employees must adapt to

the new way without being a hinder. Still, resistance of change is the most common reaction

(Turner et al., 2008). Vakola and Nikolau (2005) add that in terms of change management,

stress should be recognised and involved in the agenda since it is a new phase with increased

pressure on the employees. Managers that are responsible for change can not only consider

the effects on the organisation but need to be aware of how it will impact the individual

employee as well (Turner et al., 2008).

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To succeed and fulfil organisational goals, it is imperative that positive attitudes towards

organisational change is incorporated in the culture (Vakola and Nikolau, 2005; Smith, 2009).

The business environment will never stop changing, therefore it is essential that managers

accept and align with those changes since it is a prerequisite for future growth. As it is the

individual employee that utilizes the new system, it is essential that the employee overcome

the insecurity and get used to the new change. Thus, managers must emphasise how the

change will affect the employees.

An organisation´s success is highly influenced by its important resource, namely their

employees (Navimipour and Soltani, 2016). To achieve a successful change implementation,

it is essential that employees are committed to and accept the upcoming change (Naotunna

and Arachchige, 2016). Further, Naotunna and Arachige (2016) say that most of the change

related projects fail due to insufficient employee commitment. To establish employee

commitment, it is essential that organisations stimulate an environment that can address

occurring chaotic circumstances during an organisational change (Shum et al., 2008). Top

managers have an important influence on change initiatives but to roll out the implementation

it is lower level employees that are responsible for the success (ibid). Vakola and Nikolau

(2005) confirmed a clear correlation between positive attitudes and organisational

commitment to change. One of the most important components of a successful change

implementation is committed employees (Vakola and Nikolau, 2005).

A CRM project requires that involved employees adapt and accept new ways of thinking which

are established due to new ways of acting (Shum et al., 2008). As more employees can

recognise themselves within the organisation, the likelihood of increased commitment and

hence a greater chance of change acceptance (Vakola and Nikolaou, 2005). Since CRM

implementation is a complex process that disrupts the status quo, it is imperative that

employees can accept upcoming change. As the literature states, most organisational changes

fail because of poor commitment from employees. Change is inevitable if the business wants

to grow, therefore employee acceptance and commitment must be a priority in the

implementation of a CRM system.

According to Turner et al. (2008), it is necessary that managers acknowledge the importance

of people investment such as improved recruiting and training activities, supporting frontline

13

staff with technology and compensating employees’ performance in relation to performance.

Further, Turner et al. (2008) proclaim that people investment will eventually lead to internal

relationship which in turn will enrich the organisation´s financial performance. Kaliprasad

(2006) add to the importance that when employees receive efficient and qualified training,

they will more likely stay within the organisation. It is important that senior managers help

employees to understand upcoming changes and confirm that each employee possesses right

skills needed when new challenges arise. Providing appropriate training is therefore perceived

as a necessity for both the organisation and employees as well (Cambra-Fierro et al., 2017). In

the study provided by Shum et al. (2008), the researchers proclaim that some respondents

highlighted low morale, higher staff competition, and insufficient training. Consequently,

several employees considered leaving from the organisation.

A change management program that has a concise communication plan together with

appropriate training will contribute to increased employee acceptance and satisfaction (Long

and Spurlock, 2008). Due to less organisational capabilities such as finance, less time or

ignoring the benefits, smaller firms have not initiated training activities as much as larger

firms. Smaller firms that do not encourage training activities, will stay in the current

development phase and most likely be outpaced by competitors. Training will create and

develop new employee knowledge, which in turn improves the business´ performance

(Patton, Marlow, and Hannon, 2000).

As Cambra-Fierro et al. (2017) and Shum et al. (2008) imply, it is imperative that employees

understand or have the right competencies to work in the new environment, or they will more

certainly being a hinder of the new change. Therefore, it is essential that managers provide

training and compensation which, will in turn, enhance the organisation´s financials as well as

employee relations. Employee training and establishment of a proper communication plan

have been investigated throughout the literature as factors to improve employee satisfaction.

Still, because of fewer resources, smaller organisations have not adopted training in the same

proportion as larger enterprises. Although smaller firms do not have the same resources as

larger firms, they still need to adapt to changes and focus on people investment. Otherwise,

they may face customer as well as employee turnover.

14

Another factor that several researchers point out, is that the CRM system must be user-

friendly so that the employees do not intend to go back to the old system (Navimipour and

Soltani, 2016; Shum et al., 2008). Vakola and Nikolaou (2005) as well as Shum et al. (2008),

highlight the importance that organisations need to be aware of the extra workload that may

occur due to an organisational change. If the old system is still running although the new

system has been implemented, it may result in negative change attitudes if the new system

requires more workload (Vakola and Nikolaou, 2005). Shum et al. (2008) confirm this by

stating that one of their cases failed since the project team did not fulfil promises which

resulted in extra workload and therefore frustrated employees.

A major barrier to change implementation is the amount of job security (Naotunna and

Arachchige, 2016; Vakola and Nikolaou, 2005). Job insecurity will generate poor work

behaviour and less change commitment. Therefore, are managers recommended to assure

future employment in organisation (Naotunna and Arachchige, 2016). Rahimi (2017) as well

as Iriana et al. (2013), confirm the importance of ensuring future employment, provide

employees power to control and shine in customer service which will contribute to a

successful CRM. Incorporating an organisational change comes rarely with a perception of

increased job insecurity. Due to new changes, employees tend to fear that they will lose their

job or deal with higher and more complex workload. It is important that managers convince

the personnel with no extra workload and that their employees will still stay within the

organisation.

CRM is not a new concept, but rather an evolution of Relationship Marketing with the more

emphasis on retaining customers instead of acquiring new customers. Previous research has

dominated within large enterprises due to their more resources, but nowadays SMEs are

understanding its benefits and consider adopting a CRM solution. CRM evolved due to an

organisational change from product to customer oriented. Consequently, companies need to

consider internal CRM as equally important as external CRM, since internal CRM is an

important success factor for external CRM. A frame of reference for implementing CRM is

shown in table 2.1

15

Table 2.1 Frame of reference for RQs

Preconditions Authors

People investment Cambra-Fierro et al., 2017; Kaliprasad, 2006; Long and Spurlock, 2008;

Nguyen and Waring 2013; Rahimi and Gunly, 2016; Rahimi, 2017;

Turner et al., 2008; Patton et al., 2000

Ease of use Navimipour and Soltani, 2016; Shum et al., 2008; Vakola and Nikolaou,

2005

Job security Vakola and Nikolau (2005)

Risk taking

environment

Iriana et al., 2013; Rahimi and Gunlu, 2016; Rahimi, 2017

Less resources in

SME

Fazlzadeh et al., (2011)

Purpose, vision, and

contribution

Chen and Popovich, 2003; Nguyen and Waring, 2013

2.4 Summary

This chapter starts with explaining and defining what customer relationship is and how it

emerged from the previous concept of Relationship Marketing. Furthermore, a definition of

CRM is stated for this study which is inspired by previous definitions. The chapter continues

with discussing how CRM can benefit SMEs and defines what an SME is. After the explanation

of CRM, the chapter continues with Organisational Culture and CRM, where the culture is

discussed and how the CRM will affect the whole culture. Lastly, Preconditions for

implementing a Customer Relationship Management system are explained, which are all

16

presented in the frame of reference. The frame of reference encompasses the base of this

study.

3. Methodology

This chapter provides an explanation of used methodology during the study. Alternative

strategies of research methods are explained to compare and justify the chosen method. The

chapter encompasses Research purpose, Research approach, Research strategy, Sample

selection, Data analysis, Reliability and validity and Ethical consideration. Finally, the chapter

ends with an explanation of examined company.

All methodological selections for this research are highlighted in table 3.1 and each will be

more explained in the following chapter.

Table 3.1 Methodology of the study

Research Design Methodology

Research Purpose Descriptive

Research Approach Deductive

Research Strategy Survey

Sampling Probability

Data Collection Questionnaire

Analysis Quantitative

3.1 Research purpose

The purpose of the research is determined by stated research questions and how they are

formulated (Saunders, Lewis and Thornhill, 2009). A research study can either be categorised

as exploratory, descriptive, or explanatory (Baxter and Jack, 2008; Saunders et al., 2009). An

17

exploratory study has the intention to seek new perceptions, investigate what is happening or

to evaluate an incident from a new viewpoint. An exploratory study encompasses; literature

search, interviewing experts in the subject and conducting a focus group. The descriptive study

correlates with research that tends to describe a detailed situation of events, series, or a

personal profile. When the underlying reasons of a problem is unclear, it is recommended to

use a descriptive research. Explanatory studies aim to clarify a correlation between different

variables in various problems or situations (Saunders et al., 2009).

The research´s intention was to examine what employees´ need in terms of an organisational

change and what their perception is. Hence, the research purpose is based upon a descriptive

study, and the purpose of the research is stated as; to examine the employees´ perspective on

the subject of a CRM implementation in SMEs. The research examined and described a detailed

situation from the employees´ point of view, what they need to accept the change and did

also provide a questionnaire with the intention to describe an appropriate personal profile.

Consequently, descriptive study was chosen. Based on the research purpose the following

research questions were answered:

RQ1: What are the pre-conditions for implementing a CRM system in small and medium-sized

enterprises, from employee´s view?

RQ2: What are the employees´ perception towards an organisational change by a CRM

implementation?

RQ3: Is there any difference between employees’ perspectives, depending on age, about

preconditions for implementing CRM?

18

3.2 Research approach

Gathering new information and knowledge can be performed in two ways, namely a deductive

or an inductive approach (David and Sutton, 2016). Inductive reasoning correlates to building

theory based from observations with an aim of providing generalisations of identified

incidents. Further, a deductive approach corresponds to testing an established theory or

generalisation and assure if it can be useful for specific situations (Hyde, 2000). According to

Dubois and Gadde (2002), there exists a third approach as well, namely an abductive

approach. An abductive approach is a result of combining both deductive and inductive

approaches (ibid). The authors conclude that an abductive approach is appropriate if the

purpose is to find new variables and new relationships.

The survey result provided employee data that answered employees´ perception and

preconditions to commit an organisational change. There are three ways to collect data

namely, qualitative, quantitative or a combination of both. According to Saunders et al. (2009,

p. 482), quantitative data collection differs from qualitative in terms of “based on meanings

derived from numbers”, “collection results in numerical and standardised data” and “analysis

conducted through the use of diagrams and statistics”. Further, Saunders et al. (2009, p. 482)

explain that qualitative data collection is “based on meanings expressed through words”,

“collection results in non-standardised data requiring classification into categories” and

“analysis conducted through the use of conceptualisation”. A research that is based upon a

survey strategy is favoured by a deductive approach (Saunders et al., 2009).

Due to the research purpose in combination with the research´s significance, a deductive

approach was suitable. This research was based upon existing gap from the literature, which

was then tested in a real-life situation with the purpose to examine the employees´

perspective on the subject of a CRM implementation in SMEs , hence was a deductive approach

appropriate. According to Saunders et al. (2009), a deductive approach combined with a

descriptive purpose is benefitted by a quantitative data collection. Consequently, it was

possible to collect a vast amount of data that eased statistical analysis.

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3.3 Research strategy

Research strategies can be categorised as either case study, experiment, survey, history or

analysis of archival information (Yin, 2017; Yin, 2003). The importance is if the strategy can

guide the research to fulfil its objective and answer research questions. A research strategy is

based upon formulated research questions and it is important to consider available resources,

time and existing knowledge before a strategy is determined (Saunders et al., 2009). Research

questions are mostly formulated with How, Why, Who and What (Yin, 2017).

Case studies, experiments or history are mostly referring to How and Why questions, whereas

What questions correlates to either survey or archival studies. Since all research questions in

this study are What questions, this study correlates to either a survey or an archival strategy.

Archival studies are favourable when the aim of the research purpose is to forecast specific

outcomes or try to explain the situation based on a certain incident (Yin, 2017). Archival

studies refer to not only historical documents, but recent papers as well. To perform an

archival research, the researcher will collect data from documents as well as administrative

records. Survey strategy is well correlated with a deductive approach and is the approach most

commonly used in What questions (Saunders et al., 2009). Table 3.2 explains when each

strategy should be used.

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Table 3.2 Summary of research strategies

Strategy Research question Control

surroundings

Focus on

current

situation

Experimental How? Why? Yes Yes

Survey Who? What? How many?

How much? Where?

No Yes

Archive study Who? What? How many?

How much? Where?

No Yes/No

Historical

material

Why? / How? No No

Case study Why? / How? No Yes

Source: Yin 2003

This study was based upon a deductive approach with a standardised questionnaire to collect

data. The questions in the study encompasses two What questions and the third is an Is

question. Since the establishment of these questions, it was possible with either a survey

strategy or an archival study. Conclusively, a survey strategy was selected and is supported

by Saunders et al. (2016) that proclaims the efficiency of data collection within survey

strategies.

3.4 Data collection

This research has adopted a survey strategy approach, where data can be gathered through

either interviews, observations, or questionnaires (David and Sutton, 2016). Which method

that is most appropriate depends on necessary amount of data, the nature of the study and

what kind of data that is preferred. Based upon a deductive and a quantitative approach,

questionnaire data can either be collected from observations, self-completion, or interviewer

21

completion (David and Sutton, 2016). Self-completed questionnaires have the advantage of

easily administered via email or online surveys, and they do not require physical attendance

of the researcher (ibid).

Saunders et al. (2009) describe two types of questionnaires, interviewer or self-administered.

Questionnaires that are administered by the interviewer are established when the interviewer

records the answer. Self-administered are the opposite where the interviewer is not present

during questionnaire completion and the survey are completed by respondent alone. There

are several conditions that affect the choice of an appropriate questionnaire, such as how

large sample is required, how many questions will be asked and the respondent´s

characteristics (Saunders et al., 2009). As the purpose of this study was to examine the

employees´ perception and preconditions to accept an organisational change, this research

required a vast amount of data input and moreover a quantitative approach. With respect to

the large amount of required data, this research adopted a self-completed questionnaire with

structured questions on a five-point Likert scale, three open-ended questions and finally

demographic questions, see Appendix I.

3.4.1 Questionnaire

A questionnaire survey correlates to questions where the respondents are triggered to answer

the same question as previous respondents (Saunders et al., 2009). All asked questions have

already been established by the researcher and all of them follow the same order, no matter

interview situation. Questionnaire surveys are beneficial within a survey strategy since it eases

the data collection method with a large respondent input. Although the respondents will

answer the same question, there are still difficulties to produce high-quality questions that

will contribute to the research objective and research questions (Saunders et al., 2009).

The questionnaire survey in this research was adapted and inspired by previous research.

Furthermore, all research questions were developed with assistance from the supervisor

which in combination provides high-quality questions that increase the likelihood of

answering employees´ perception on the subject of a CRM implementation in SMEs.

22

3.5 Sample selection

Since a survey strategy was decided as the most appropriate method to collect required data

input, the following question is to decide a right sample size, so that stated research objective

can be fulfilled. Sampling is a methodological approach that is used when there are economic

constraints, time is limited, practical difficulties to survey the entire population or when the

researcher is addressing a smaller sample size due to the need of a fast result (Saunders et al.,

2009).

Samples can be collected as either probability samples or non-probability samples (David and

Sutton, 2016). Probability samples are selected to assure that everyone in the population

possesses an equal chance of being selected and are mostly correlated with survey strategies

(Saunders et al., 2009). Further, the authors state that probability sampling is also referred as

representative sampling and is most commonly used when the objective is to make

interpretations from a sample of a population. This research has adopted a probability sample

where each respondent has an equivalent opportunity of being selected because of the

purpose to examine employees´ perspective on the subject of a CRM implementation in SMEs.

A non-probability sample is defined as selecting participants on personal judgement (Saunders

et al., 2009). Since the research purpose is to examine the employees´ point of view regarding

an organisational change, what they need to accept the change and request to stay committed

this research has not adopted a non-probability approach. With a non-probability sample, it

would not be possible to collect a wide amount of data and hence only get data input from

some employees. The survey was delivered by email to 74 employees wherein total 51

employees answered the questionnaire. Six of the employees had the profession as middle

managers and the rest 45 respondents worked in either administration, market, mechanic,

sales or as a technician.

3.6 Data analysis

The data analysis started with coding the respondent Excel file and transform it into IBM SPPS,

which is a statistical tool to interpret data. Firstly, the analysis started with a demographic

analysis such as age, gender, education, profession, and years of employment. Secondly, the

23

analysis considered the mean rankings based on the employees´ preconditions and perception

towards change. The analysis was finalized with two statistical techniques namely, Reliability

of Scale and a T-test analysis. These two techniques are explained further in following section.

3.6.1 Statistical Techniques

Collected data must be validated and analysed. To do so, two statistical techniques were used

in this research. Following techniques were used in the research:

Reliability analysis

Pallant (2013) state that to decide which scales to include in the study, it is vital that they are

all reliable. A major concern regarding reliability is if the scale is internal consistent, which is a

degree of how much the items in the scale are grouped together and pointing to the same

direction (Pallant, 2013). One of the most used method to determine internal consistency is

to calculate the Cronbach alpha coefficient (Pallant, 2013). To assure internal consistency of

the study, the Cronbach alpha was calculated.

T - test

The T-test is a commonly used statistics tool to assess and compare means between two

different groups. If the research consists of descriptive statistics, it is recommended to do an

independent sample t-test, which will evaluate if observed variances are statistically

significant (David and Sutton, 2016).

Iverson (1996) says that the age of the employee is contributing to the degree of change

acceptance. A comparison of older vs younger employees concluded that younger employees

tend to accept changes more than older employees (ibid). To test this, and answer research

question 3 “Is there any difference between employee’ perspectives, depending on age, about

preconditions for implementing CRM?” a T-Test was performed. The T-Test compared the

means between the two age groups of 21-40 with the age group of 41-60. Finally, David and

Sutton (2016) proclaim that a p-value (significance level) above 0,05 the variances can be

assumed be equally important and hence no age differences.

24

3.7 Reliability and validity

It is important that collected data is reliable and well planned so that wrong answers are

minimised which results in a more qualified report (Saunders et al., 2009). An appropriate

research design will minimise the risk to answer wrong questions and the researcher must pay

attention to both the reliability and validity (Saunders et al., 2009). According to Heale and

Twycross (2015) is reliability a measurement of consistency. Further, Heale and Twycross

(2015) state that calculating the Cronbach alpha is a popular method to verify the

measurement´s internal consistency. A recommended Cronbach alpha value is 0,7 or above

(Heale and Twycross, 2015). Still, Cronbach alpha values are receptive to how large the scale

is, and smaller scales commonly receive lower values e.g. 0,5 (Pallant, 2013).

David and Sutton (2016) define reliability as “the degree to which the indicator or test is a

consistent measure over time, or simply whether the respondent will give the same response

at a different time” (p. 266-267). A reliable measurement has consistent responses and limited

or few error measures. Still, errors are inevitable since they are impossible to eliminate (ibid).

To assure a reliable study, all respondents were assured that they answered anonymously,

which increased the chance of getting trustworthy results without being able to be identified.

The questionnaire was based upon a self-completed survey which minimised interaction

between researcher and respondent so that the responses did not depend on the relationship

between researcher and the respondent. Finally, each participant could answer the

questionnaire whenever the time was best for them, which led to no stress and interference

with their daily routines so that higher reliability was achieved.

To determine the study´s internal reliability, the Cronbach alpha was calculated for each

construct. The Cronbach alpha justifies if the scales are internal reliable and a recommended

alpha value is 0,7 or above (Pallant, 2013). Cronbach alpha values in this study range from

0,665 to 0,997 where two of eight constructs generated alpha values below 0,7.

Validity is related to if the study can describe and measure what it was originally intended to

achieve. David and Sutton (2016) talk about five types of validity which are criterion validity,

predictive validity, face validity, content validity and construct validity. Criterion validity refers

to that the researcher conducts initial analyses of the measurement to control that it behaves

25

as expected to. Predictive validity is related to if there is a time lag between future findings

and the research itself. Measure predicted findings later will yield predictive validity. Further,

David and Sutton (2016) explain that face validity is a measure of the suitability of the concept.

A study that well measures all different dimensions of the concept has great content validity

(David and Sutton, 2016). Finally, a research with high construct validity assures that

measurements adapt to the theoretical model. Evaluation of construct validity is highly

dependent on original theory (ibid).

To assure that the study measures and collect data that fits the purpose, several validity

dimensions were considered. First, an initial theoretical analysis was performed to discover

the problem of intended research. The survey results were analysed later than the research

itself, which gave the respondents time to answer and assure predictive validity. Before the

survey was delivered, all questions were discussed with the supervisor and all the questions

were adapted from previous research, which increased face validity of the study. Concerning

content validity as well as construct validity, the study is based upon previous research and all

identified components in the literature review were tested, which assure a more valid report.

3.8 Ethical consideration

Gustafsson, Hermerén, and Pettersson (2005) explain research ethics as of how much asked

questions considers respondents and participants in the study. Research ethics concerns how

information is provided, how the publication can affect respondents, how respondents are

selected and how the study will affect an intermediator (ibid). This project assured all

respondents that they answered anonymous, with the intention of increasing participation

rate and provide more reliable results.

3.9 Case Company

This research project has examined Mekano AB and how they can benefit from a CRM

implementation from the employees´ point of view. Mekano AB started their business in 2011

and has since then increased its turnover from each year whereas the turnover of 2017

generated 127 million SEK. Nevertheless, the employee acquisition and retention increased

from 74 hired in 2016 to 81 employees in 2017.

26

The business is performed in Helsingborg (Headquarter), Malmo, Trollhattan, Gothenburg ,

and Perstorp. Mekano AB supplies high-qualitative products and services with the great focus

on cost-reductions for the end customer. Their expertise lies within; Sales, Industry-support,

Machine service, industry-electrician, projects, and hydraulics. Their customers are mainly

municipalities, engineering -, process-, food-, and the sea industry.

Today, Mekano AB is operating with Excel to manage their customers which is ineffective and

have initiated a need of change with implementing a CRM system. The need was initiated due

to the willingness to serve customers at a higher level, make them stay longer with Mekano

AB and provide positive word of mouth. Throughout the literature, a successful CRM

implementation depends on the internal successful rate, therefore is Mekano AB a good

examination since the system has not been implemented yet. The employees´ perspective was

hereby interviewed and examined.

3.10 Summary

This chapter presents appropriate chosen methodologies for this study. To justify selected

alternative, each alternative was compared with other alternatives so that each corresponds

to this study. Firstly, the chapter starts with explaining the purpose of the study and justifying

the descriptive purpose. Further on, the research approach is clarified as deductive and the

strategy of the research is based upon a survey strategy. Data analysis with representative

statistical techniques were also discussed. The chapter ends with a discussion of the study´s

validity, reliability, and a presentation of the case company.

27

4. Results

4.1 Introduction

This chapter presents a summary of collected data. The chapter starts with a demographic

analysis, mean ranking of preconditions and perceptions, and followed by a reliability of scales

analysis. A t-test which compares the mean of two different age groups and an analysis of the

three open-ended questions ends the chapter.

4.2 Demographic analysis

This section presents a demographic analysis of the questionnaire respondents. The section

starts with an analysis of gender, followed by education, occupation, age and finalized by years

of employment. The sample size consists of employees at Mekano from middle manager to

mechanics, sales, technicians etc.

4.2.1 Demographic characteristics

In total 51 respondents answered the survey which are all used for the data analysis in this

research. The demographic characteristics start with explaining the gender distribution of the

respondents, where 90% of the respondents were male and 10% of the respondents were

females. Table 4.1 shows the gender distribution of the respondents.

Table 4.1 - Gender of Respondents

Gender N=51 Percent

Male 46 90%

Female 5 10%

Total 51 100%

Table 4.2 shows the educational level of the respondents. 78 % answered a college degree,

10% elementary school, 8% as other and 2% have a bachelor’s degree or a master´s degree.

28

Table 4.2 - Educational level of Respondents

Educational level N=51 Percent

College 40 78%

Elementary 5 10%

Other 4 8%

Bachelor 1 2%

Master 1 2%

Total 51 100%

Table 4.3 shows that 35% have a technical occupation and 29% of the respondents a

mechanical occupation. These two occupations contribute to the majority of the responses

and will all be highly affected by the new organisational change. The sales department

contributed with 18% of the responses, which in turn was the functional department that

initiated upcoming change implementation. 12% of the responses consist of middle managers,

4% have an administrative occupation and 2% work in the market department.

Table 4.3 Distribution of occupation

Occupation N=51 Percent

Technician 18 35%

Mechanic 15 29%

Sales 9 18%

Middle manager 6 12%

Administration 2 4%

Market 1 2%

Total 51 100%

Table 4.4 shows the respondents´ age distribution where most of the respondents are within

the range of 41-50 (37%). The two alternatives of 31-40 and 51-60 correspond to 22 and 25%

respectively. Lastly, the two age groups 21-30 and above 60 were represented as 10 and 6%

respectively of the responses.

29

Table 4.4 Age distribution

Age N=51 Percent

41-50 19 37%

51-60 13 25%

31-40 11 22%

21-30 5 10%

Over 60 3 6%

Total 51 100%

Table 4.5 shows how many years the company has hired the employees. Most of the

respondents said that they have been with the company for one year (33%), followed by two

(25%) and three years (20%). The rest of the response rates were all below 10 % which

conclude that most of the employees are newly hired at the company and have hence not

worked for many years with the current system.

Table 4.5 Distribution of years of employment

Years of

employment N=51 Percent

1 17 33%

2 13 25%

3 10 20%

4 3 6%

5 3 6%

6 3 6%

7 1 2%

10 1 2%

Total 51 100%

30

4.2.2 Ranking of preconditions for implementing CRM

This section ranks the 30 preconditions items based on their mean value, where the top

prioritized item is in the top and followed by the top second most important and so on. Table

4.6 shows that the most important precondition is “I expect that senior and middle managers

are involved in the change implementation and will support me through the whole change

process” (M=4,41). Nguyen and Waring (2013), Turner et al. (2008) and Shum et al. (2008)

support this by stating how crucial it is with senior and middle manager´s support and

involvement during the whole change process.

Furthermore, the top five preconditions are all above the mean value of 4,29 which implies

these conditions are imperative to consider. The following four top conditions are as

following; “I expect that the new system is user friendly and easy to learn” (M=4,35), “I expect

in-depth customer information to ease customer management” (M=4,35), “I expect that the

system ease information sharing among colleagues and functional departments” (M=4,29)

and “A clear communication plan will improve my change acceptance and commitment”

(M=4,29).

Regarding the five items with lowest mean they have a mean range from 2,49 to 3,49 and are

the following items; “I know what to expect from the CRM system” (M=2,49), “If I am not given

proper training, I will be frustrated and may resign from the company” (M=2,61), “I believe the

organisation encourage a risk-taking environment” (M=2,69), “Share information with your

colleagues” (M=2,98) and “I believe that my organisation has sufficient resources” (M=3,49).

This implies that the respondents are not familiar with what the new system will bring the

organisation and how it will affect them on an individual level. The least ranked item is

contradicting the findings from Shum et al. (2008) that highlighted the magnitude of

communicating why intended change is necessary.

The four least ranked items indicate that the respondents will not leave the organisation due

to insufficient training, the company has not adopted a risk-taking environment which may be

a wrong direction of an adhocracy culture as explained in section 2.3. The company is also

facing problems with information sharing among departments, and there are few respondents

that believe the company has insufficient resources to manage the upcoming change.

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Table 4.6 Mean rankings of preconditions

Rank Items Mean

1 Senior and middle managers involvement and support in the change process 4.41

2 I expect that the new system is user friendly and easy to learn 4.35

3 I expect in-depth customer information to ease customer management 4.35

4 I expect that the system ease information sharing among colleagues and functional departments 4.29

5 A clear communication plan will improve my change acceptance and commitment 4.29

6 I want to know the decisions managers are taking 4.27

7 I am willing to attend training on a regular basis to renew my skills 4.23

8 I expect to understand the purpose, vision and what changes the CRM will bring 4.12

9 Training should be compulsory for all employees 4.04

10 Management support will improve my commitment to change 4.03

11 I am encouraged to collaborate and teamwork with my colleagues 4.02

12 Proper system training will help me understand my role throughout the implementation 3.98

13 Proper technology will simplify job performance, encourage active participation, and reduce rol e ambiguity 3.96

14 I can identify myself within this organisation and feel a sense of belonging 3.96

15 I enjoy performing cross-functional activities 3.90

16 I want to be involved in the decision-making process 3.84

17 Training will help me overcome integration barriers and be more committed to change 3.82

18 I can see my place in the adaption phase and how I will contribute 3.80

19 I am given sufficient information and knowledge to understand why intended change is needed 3.75

20 Training will help me to understand my role throughout the implementation phase 3.65

21 My organisation encourages change and a supportive environment 3.63

22 The organisation has resources to address problematic situations during change 3.57

23 I believe that our functional areas are structured around our customers 3.57

24 Collaboration with other functional areas 3.57

25 I believe that I will be more committed to change initiatives if my job is cross-functional 3.55

26 I believe that my organisation has sufficient resources 3.49

27 Share information with your colleagues 2.98

28 I believe the organisation encourage a risk-taking environment 2.69

29 If I am not given proper training, I will be frustrated and may resign from the company 2.61

30 I know what to expect from the CRM system 2.49

32

4.2.3 Ranking of perception for implementing CRM

Table 4.7 shows the mean value range from 2,78 to 3,96 of the employees´ perception towards

an organisational change. The highest mean value was received by “I believe that

implementation of CRM will improve and develop the organisational communication with old

customers” (M=3,96) which supports the findings from Reicher and Szeghegyi (2015), Özgener

and İraz, (2006) and Fazlzadeh et al. (2011). Fazlzadeh et al. (2011) support this perception by

stating it is more efficient to retain and improve your current customers, than it is to acquire

new ones. The company´s purpose of implementing the CRM system was to improve and take

care of their current customers in a more efficient way. Due to the employees´ positive

perception of the CRM system, customer communication and retention will likely be

improved.

The perception with lowest mean value “I am worried that the new system will increase my

workload” received a mean of 2,78 which indicates that few of the respondents agree on this

statement. The research conducted by Vakola and Nikolau (2005) found an increased

tendency to leave the organisation due to more work assignments and insufficient system

training. As the mean of this statement tends to disagree, the employees have a positive

change perception and may stay with the organisation.

33

Table 4.7 Ranking of perception towards CRM implementation

Rank Items Mean

1 I believe that implementation of CRM will

improve and develop the organisational communication with old customers

3.96

2 I believe that implementation of CRM will

influence on keeping old customer 3.88

3 I believe that organisational changes will

improve the organisation ́ s performance 3.80

4 I believe that implementation of CRM will

influence on identifying new customers

3.50

5 I believe in an environment that encourages

risk-taking and innovation where I can act in the best interest of our customers

3.39

6 I am worried that the new system will

increase my workload 2.78

4.3 Reliability of scales

As mentioned in section 3.7 is the Cronbach alpha coefficient a good way to determine if the

scales are reliable and consistent. The Cronbach alpha coefficient is an indicator of internal

consistency and an ideal value is above 0,7 (Pallant, 2013). Still, Cronbach alpha values are

receptive on how large the scale is, and smaller scales commonly receive lower values e.g. 0,5

(Pallant, 2013).

Table 4.8 shows the alpha values provided by IBM SPSS which all passed the value of 0,5 due

to smaller scales. The alpha values were calculated for each respective construct such as

“Commitment to change”, “Organisational culture” and “Interdepartmental and cross -

functional integration” etc. Each construct consists of either 3, 4, 5 or 6 number of items and

calculated Cronbach alpha range from 0,665 to 0,997.

34

Table 4.8 The Cronbach’s Alpha reliability of constructs

Constructs Number of items

Cronbach’s Alpha

Commitment to change 3 0,997

Technology 4 0,996

Top management Support 6 0,996

Training 5 0,993

Organisational Culture 4 0,992

Communication 4 0,991

Interdepartmental & Cross

functional integration

4 0,687

Employee Perception 6 0,665

4.4 T- test

As mentioned in section 3.6.1 a T-test is an analysis method to compare the means of two

variables. In this chapter the T-test was performed in a comparison between the age 21-40

with 41 -60 years old respondents to test the findings from Iverson (1996) and investigate if

there are any differences between employees’ perspectives, depending on age, about

preconditions for implementing CRM.

4.4.1 T -test for preconditions

This section presents a mean comparison between the ages of 21 -40 and 41 -60. All the seven

preconditions of Commitment to Change, Organisational Culture, Interdepartmental and

cross-functional integration, Training, Communication, Technology and Top Management

Support were tested and compared.

35

Table 4.9 shows the mean comparison between the preconditions of commitment to change,

with a p-value range from 0,212 to 0,564. Since all of the values exceed 0,05 this indicates that

the conditions have no significant differences within the two age groups.

Table 4.9 Mean Comparison Commitment to change

Item P – value

I can identify myself within this organisation and feel a sense of

belonging

0,564

The organisation has resources to address problematic situations

during change

0,324

Management support will improve my commitment to change 0,212

Table 4.10 shows the mean comparison of the organisational culture with a p-value range

from 0,205 to 0,636. This indicates no age differences regarding the condition organisational

culture.

Table 4.10 Mean Comparison Organisational Culture

Item P – value

I believe the organisation encourage a risk-taking environment 0,636

I am encouraged to collaborate and teamwork with my colleagues 0,430

My organisation encourages change and a supportive environment 0,324

The culture in this organisation is to share information with your

colleagues

0,205

36

Table 4.11 shows there is one item that did not pass the t-test condition of exceeding the limit

of 0,05. The item that did not pass the test was the following “I believe that our functional

areas are structured around our customers” which received a p-value of 0,045. This indicates

mean variance among the two age groups 21-40 and 41-60. Consequently, there are age

differences within this condition. Furthermore, the item “I enjoy performing cross functional-

activities” received a value of 0,086 which passes the test of exceeding 0,05. Still, it is slightly

above and indicates some variance between the ages.

Table 4.11 Mean Comparison Interdepartmental and cross functional integration

Item P – value

I believe that I will be more committed to change initiatives if my job is

cross-functional

0,722

Employees are used to collaborate and complete tasks together with

other functional areas

0,248

I enjoy performing cross-functional activities 0,086

I believe that our functional areas are structured around our

customers

0,045

Table 4.12 shows p-values that all passed the t-test and hence proclaim there are no

differences between the two age groups. Still, regarding the item “I am willing to attend

training on a regular basis to renew my skills” received a p-value of 0,066 which is slightly

above 0,05 and hence there are some age differences within this item.

37

Table 4.12 Mean Comparison Training

Item P – value

If I am not given proper training, I will be frustrated and may resign

from the company

0,696

Training should be compulsory for all employees 0,360

Training will help me to understand my role throughout the

implementation phase

0,254

Training will help me overcome integration barriers and be more

committed to change

0,148

I am will ing to attend training on a regular basis to renew my skil ls 0,066

Table 4.13 demonstrates the mean value comparison of the communication condition. As it

shows the p-values range from 0,025 to 0,738. This indicates that the item with the p-value of

0.025 “A clear communication plan will improve my change acceptance and commitment” did

not pass the test since there are significant variances between the ages. Furthermore, this

item implies age variances.

38

Table 4.13 Mean Comparison Communication

Item P – value

I know what to expect from the CRM system 0,738

I can see my place in the adaption phase and how I will

contribute

0,215

I am given sufficient information and knowledge to

understand why intended change is needed

0,162

A clear communication plan will improve my change

acceptance and commitment

0,025

The mean comparison of technology in table 4.14 shows a p-value range from 0,287 to the

highest with 0,912. This indicates that there is no significant age variance between these

items.

Table 4.14 Mean Comparison Technology

Item P – value

I expect that the new system is user-friendly and easy to learn 0,912

Proper technology will simplify job performance, encourage

active participation, and reduce role ambiguity

0,902

I expect that the system ease information sharing among

colleagues and functional departments

0,818

I expect in-depth customer information to ease customer

management

0,287

39

Table 4.15 shows that the p-values vary between 0,031 to 0,796. The item “Proper system

training will help me understand my role throughout the implementation” received a p-value

of 0,031 and hence there are age variances within this item. The rest of the items received a

p-value that all exceed recommendation of 0,05, hence these items have no major age

variance.

Table 4.15 Mean Comparison Top Management Support

Item P – value

I expect to understand the purpose, vision and what changes the CRM

will bring

0,796

I believe that my organisation has sufficient resources 0,379

I want to be involved in the decision-making process 0,374

I want to know the decisions managers are taking and how the

decisions are benefiting the organisation

0,216

I expect that senior and middle managers are involved in the change

implementation and will support me through the whole change

process

0,174

Proper system training will help me understand my role throughout

the implementation

0,031

4.5 Open-ended analysis

In this section are the open-ended questions analysed. This analysis interpreted the

respondents´ answers which are then presented in histograms below. At first, the analysis

starts with the question “How often would you like to receive training?”, followed by “What is

your biggest concern related to this change implementation?” and finally the question “Would

you like to be involved and informed in the implementation process? How?”.

40

As table 4.16 shows, most of the respondents have no opinion or do not want to receive

training in the new system implementation. In addition to that, the answers vary from one to

four times a week, where two times in the week is preferable.

Table 4.16” How often would you like to receive training?”

Regarding table 4.17, the respondents did not perceive any concern due to the new change

implementation. Those answers that received significant responses were “Concern due to

more workload” and “Concern due to improper employee change acceptance”.

Table 4.17” What is your biggest concern related to this change implementation?”

43%

8%

24%

6%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

No Opinion 1x week 2x week 3x week 4x week

How often would you like to receive training?

4%

61%

20%

10%

2% 2% 2%

0%

10%

20%

30%

40%

50%

60%

70%

Chaos No worry More work Improperchange

acceptance

No finish ofwork

Time Resources

What is your biggest concern related to this change implementation?

41

As table 4.18 shows the three themes received similar results, where “No involvement” and

“Communication” were the two most popular answers. Communication refers to continuous

information through meetings or emails that are delivered to the whole organisation. The

third most popular answer was “Involvement”, which refers to involve the employee in the

change process so that he or she knows how to use the system.

Table 4.18” Would you like to be involved and informed in the implementation process? How?”

4.6 Summary

This chapter analyses collected data from the questionnaire and have followed the analysis

method that was presented in section 3.6. First, the chapter starts with a demographic analysis

of gender, age, education, profession, and years of employment were explained. The gender

distribution was mainly men 90%, 78% had a college degree, 37% of the respondents were in

the age between 41-50, 35% were technicians and most of the employees had been with the

company for one year (33%).

After the demographic analysis, preconditions, as well as perceptions, were ranked based on

their mean values. The top-ranked precondition was “I expect that senior and middle

managers are involved in the change implementation and will support me through the whole

change process” which received a mean value of 4.41 and the top employee perceptions is “I

35% 35%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

No Communication Involvement

Would you like to be involved and informed in the implementation process? How?

42

believe that implementation of CRM will improve and develop the organisational

communication with old customers” with a mean of 3,96.

The T-test was performed to answer if there are any age variances regarding of preconditions

to implement a CRM. The test found three items that had significant variances: “I believe that

our functional areas are structured around our customers (0,045)”, A clear communication

plan will improve my change acceptance and commitment (0,025)” and “Proper system

training will help me understand my role throughout the implementation (0,031)” were the

three items that did not pass the test.

The open-ended questions imply that the majority have no opinion or do not want to receive

training on the new system. Those that do want training, do either want it two times a week

or four times a week. Most of the respondents feel no worry of the new upcoming change and

if they want to be involved in the change implementation they preferred either by

communication as emails or be involved as test persons.

5. Discussion, Conclusions, and Recommendations

5.1 Discussion and Conclusion

As collected data is analysed, this chapter takes on by answering formulated research

questions and objective. The chapter encompasses main findings of each research question,

recommendations and theoretical as well as a practical contribution of the study. The chapter

also contains limitations and suggestions for future studies.

This study set out to examine the employees´ perspective on the subject of a CRM

implementation in SMEs. Formulated research purpose has guided the researcher through the

whole study, from the establishment of research questions, delivering results and finally

concluding the study with main findings and recommendations. Three research questions

were created to achieve the purpose:

RQ 1: What are the pre-conditions for implementing a CRM system in small and medium-sized

enterprises, from employee´s view?

43

RQ 2: What are the employees´ perception towards an organisational change by a CRM

implementation?

RQ 3: Is there any difference between employee’ perspectives, depending on age, about

preconditions for implementing CRM?

To answer these research questions a questionnaire of 36 Five-point Likert scale questions

and three open-ended questions were answered by 51 respondents. The questionnaire was

provided to employees and middle managers at the company. The sample selection is based

on a non-probability sample so that all had a chance to answer the questionnaire.

Research question 1: What are the pre-conditions for implementing a CRM system in small and medium-sized enterprises, from employee´s view?

The first research question examined the employees´ preconditions for implementing a CRM

system. The main finding related to this research question is that senior and middle managers

must be involved and support the employees´ during the whole change process. The managers

must be aware that this change may take time for the employees´ to accept. This finding is

supported by Nguyen and Waring (2013) who also found the importance of including the

employees´ in the implementation phase.

Additional main findings of employees´ preconditions were that the system must be easy to

learn, provide the employee with extensive customer information, ease information sharing

among colleagues and that a concise communication plan will improve change acceptance.

Interestingly, 40% of the respondents claimed that they have no opinion or do not want

additional training in the new system. Still, “I am willing to attend training on a regular basis

to renew my skills” got a mean value of 4,23 and ranked as number seven and “Training should

be compulsory for all employees” is ranked as number top nine. This implies that the

employees are requesting training, but it cannot interfere too much with their daily routines.

Several authors support this finding of providing employee training, for example, Shum et al.

(2008) found that employee resignation may be a factor of insufficient training. Patton et al.

(2000) add that training will improve employee knowledge and thus an improved business

performance.

44

Research Question 2: What are the employees´ perception towards an organisational change

by a CRM implementation?

The second research question correlates to answer the employees´ perception towards an

organisational change. The main finding concerning this question is the perception that the

CRM system will improve communication with current customers which is highly supported

by Alamgir and Uddin (2017). Alamgir and Uddin (2017) highlighted the importance of focusing

on current customers since customer acquisition is more difficult. Remarkably is the statement

“I am worried that the new system will increase my workload” which received a mean of 2,78.

Shum et al. (2008) found a case study that failed due to extra workload and not fulfilled

promises, which resulted in unsatisfied employees. The findings from this research support

the findings of Shum et al. (2008) and justify the importance of not increasing current

workload.

Additional conclusions from this research question are that all the means are centred around

3 (Neither disagree or agree). This indicates that the respondents are not well informed about

the new system and the employees may have improper information to share their perception.

As Shum et al. (2008) say, it is important that intended upcoming change is truly incorporated

into the organisation and that all of the employees know why it is necessary. The conclusion

regarding employees´ perception is that few are highly familiar with the new change.

Research Question 3: Is there any difference between employee’ perspectives, depending on

age, about preconditions for implementing CRM?

The third research question answers if there are any differences between employees’

perspectives, depending on age, about preconditions for implementing CRM. The main

findings from the t-test of preconditions are that most of the items do not encompass age

variances. Still, out of 30, items only three items did not pass the t-test and thus, age variances.

Those items that did not pass the test were following: “I believe that our functional areas are

structured around our customers”, “A clear communication plan will improve my change

acceptance and commitment” and “Proper system training will help me understand my role

throughout the implementation”. Regarding the statement of a communication plan, this is

supported by the findings from Neville and Mohally (2004) that found an unsuccessful project

45

implementation due to improper communication. This is interesting in terms of this study

since there are different employee perceptions if they request a communication plan or not.

5.2 Recommendation

Once the upcoming change is determined, it is important that the senior and middle managers

address this to the whole organisation and declare the benefits as well as why the change is

needed. The researcher suggests that the company prioritise employee involvement such as

a frequent update on the change process and let the employees test the system, as it will be

used by everyone in the organisation. To incorporate the system-change and hence increase

employee acceptance, the researcher suggests that the company selects a few systems in

accordance with the employees´ needs and requests. It is important that the users´ voice are

heard and understood so each preference are met. The suggestion is to let users from several

functions test the system and hence select the system that most employees favour.

The case company does also need to encourage employee participation and assure that

learning the new system will not add an extra amount of work. Training of the new system is

recommended to be a part of the employees´ weekly routines as it is an important aspect of

change acceptance and understanding. Still, there are respondents that do not want to be

involved in training activities, but the researcher thinks training is inevitable. If the employees

do not undergo training, more questions and problems will arise and consequently, less

change acceptance. The company needs to have a clear vision of why the change is necessary

and how each employee will be affected. This, together with the change benefits need to be

clearly communicated through the organisation.

The implementation and acceptance phase will take time and a common barrier is change

acceptance as it is disrupting status quo with new ways of doing work. Therefore, it is

important that top as well as middle managers have the same perception and supports the

employees in all of the phases. The more knowledge the managers have about IT, what it will

bring and why it is important, the more likely they can negotiate this to their employees.

Consequently, top as well as middle managers are recommended to extend their knowledge

about IT to easier negotiate the benefits of changing system.

46

5.3 Limitation

There are several limitations that need to be considered when conducting this study. This

study examined only one company which yield that the results cannot be generalizable for

other industries. The initiative of implementing the CRM was not fully addressed to all the

employees before the survey was delivered, hence the implementation initiative came

suddenly to their awareness. Further on, most of the employees are new within the

organisation which may limit some of the questions due to their lack of experience of the

company.

5.4 Further research

This study examined one organisation where the employees had improper information about

upcoming change. The suggestion is to examine an organisation that has rooted the initiative

more deeply and hence examine the employees point of view. As the respondents were

mainly males, this research has predominantly a male perspective of an organisational change.

The suggestion is to examine a sample where more females can express their voices and hence

examine if there are perception variances in terms of gender.

5.5 Practical contribution

This is interesting for managers that are considering an organisational change and moreover

a CRM implementation. The study confirms that a successful change in the organisation

depends how well the change is accepted by the employees and how well committed they

are. Furthermore, the study proclaims that it is rarely a technological problem, but how well

the change is accepted.

As this study proclaims, senior managers and middle managers must be involved and support

the workforce throughout the whole change process. The employees need to know how they

can contribute, what the system will bring and receive regular training to improve existent

skills in the system.

CRM was before mainly incorporated into larger enterprises, but SMEs have identified the

benefits of a CRM. CRM will improve communication with current customers and as the

47

literature says, current customers tend to purchase more over time compared to new

customers. Therefore, with this implementation to easier retain current customers, the

company will significantly improve their profitability.

5.6 Theoretical contribution

This study contributes to theory by examining the employees’ perception as well as

prerequisites to accept an organisational change in SMEs. Previous studies have mainly been

performed with larger enterprises and less with SMEs. This study extends the knowledge

about employees’ perspective regarding an organisational change from a CRM

implementation.

48

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Vazifehdust, H., Shahnavazi, A., Jourshari, M. R. T., & Fataneh, S. S. (2012). Investigation critical success factors of customer relationship management implementation. World Applied Sciences Journal, 18(8), 1052-1064.

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Winer, R. S. (2001). A framework for customer relationship management. California management review, 43(4), 89-105. Zineldin, M. (2006) "The royalty of loyalty: CRM, quality and retention", Journal of Consumer Marketing, 23(7). Özgener, Ş., & İraz, R. (2006). Customer relationship management in small–medium enterprises: The case of Turkish tourism industry. Tourism Management, 27(6), 1356-1363.

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Saunders, M., Lewis, P. & Thornhill, A. (2016). Research methods for business students. Harlow, England: Pearson Yin, R. K. (2003). Case study research design and methods third edition. Applied social research methods series, 5. Yin, R. K. (2017). Case study research and applications: Design and methods. Sage publications.

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Appendix I - Survey Questionnaire

Part A: Preconditions for implementing CRM in Small and medium sized

enterprises

Please tick (✓) the appropriate number that indicates how much you agree or disagree

1=strongly disagree 2=disagree 3=neither disagree nor agree 4=agree 5=strongly

agree

Commitment to change 1 2 3 4 5

Management support will improve my

commitment to change

Source: Adapted from Turner et al., 2008

I can identify myself within this organisation

and feel a sense of belonging

Source: Adapted from Rhoades et al. (2001);

Vakola and Nikolaou, 2005

The organisation has resources to address

problematic situations during change

Source. Adapted from Fazlzadeh et al., 2011

Organisational Culture

My organisation encourages change and a

supportive environment

Source: Adapted from Chen and Popovich,

2003; Fazlzadeh et al., 2011

53

I am encouraged to collaborate and teamwork

with my colleagues

Source: Adapted from Shang and Lin, 2010

I believe the organisation encourage a risk-

taking environment

Source: Adapted from Iriana et al., 2013;

Rahimi and Gunlu, 2016; Rahimi, 2017

The culture in this organisation is to share

information with your colleagues

Source: Adapted from Shang and Lin, 2010

Interdepartmental and Cross-

functional integration

I enjoy performing cross-functional activities

Source: Adapted from Rahimi and Gunly ,

2016; Rahimi, 2017

I believe that I will be more committed to

change initiatives if my job is cross -functional

Source: Adapted from Shum et al., 2008

Employees are used to collaborate and

complete tasks together with other functional

areas

Source: Adapted from Shang and Lin, 2010

I believe that our functional areas are structured

around our customers

Source: Adapted from Chang et al., 2010

54

Training

Training will help me to understand my role

throughout the implementation phase

Source: Adapted from Shum et al., 2008

Training will help me overcome integration

barriers and be more committed to change

Source: Adapted from Shum et al., 2008

Training should be compulsory for all

employees

Source: Adapted from Shum et al., 2008

I am willing to attend training on a regular basis

to renew my skills

Source: Adapted from Shum et al., 2008

If I am not given proper training, I will be

frustrated and may resign from the company

Source: Adapted from Shum et al., 2008;

Kaliprasad (2006)

Communication

I am given sufficient information and

knowledge to understand why intended change

is needed

Source: Adapted from Shum et al., 2008, Chen

and Popovich, 2003; Nguyen and Waring, 2013

I can see my place in the adaption phase and

how I will contribute

55

Source: Adapted from Nguyen and Waring,

2013; Chen and Popovich, 2003

A clear communication plan will improve my

change acceptance and commitment

Source: Adapted from Long and Spurlock,

2008

I know what to expect from the CRM system

Source: Adapted from Shum et al., 2008;

Eichorn, 2004

Technology

I expect that the new system is user friendly and

easy to learn

Source: Adapted from Navimipour and Soltani,

2016; Shum et al., 2008

Proper technology will simplify job

performance, encourage active participation,

and reduce role ambiguity

Source: Adapted from Shum et al., 2008

I expect that the system ease information

sharing among colleagues and functional

departments

Source: Adapted from Shum et al., 2008

I expect in-depth customer information to ease

customer management

Source: Adapted from Shum et al., 2008

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Top Management Support

I expect to understand the purpose, vision and

what changes the CRM will bring

Source: Adapted from Shum et al., 2008

I believe that my organisation has sufficient

resources to manage this change

implementation

Source. Adapted from Fazlzadeh et al., 2011

I expect that senior and middle managers are

involved in the change implementation and will

support me through the whole change process

Source: Adapted from Shum et al., 2008;

Turner et al., 2008

I want to be involved in the decision-making

process

Source: Adapted from Shum et al., 2008;

Nguyen and Waring, 2013; Rahimi, 2017

Proper system training will help me understand

my role throughout the implementation

Source: Adapted from Shum et al., 2008

I want to know the decisions managers are

taking and how the decisions are benefiting the

organisation

Source: Adapted from Nguyen and Waring,

2013

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Part B: The employees´ perception towards an organisational change

1=strongly disagree 2=disagree 3=neither disagree nor agree

4=agree 5=strongly agree

Employees´ perception towards

organisational change

1 2 3 4 5

I believe that organisational changes will

improve the organisation´s performance

Source: Adapted from: Patton et al., 2000;

Turner et al., 2008

I believe in an environment that encourages

risk-taking and innovation where I can act in

the best interest of our customers

Source: Adapted from Rahimi and Gunly ,

2016; Rahimi, 2017

I believe that implementation of CRM will

improve and develop the organisational

communication with old customers

Source. Adapted from Reicher and Szeghegyi

(2015); Özgener and İraz, 2006; Fazlzadeh et

al., 2011

I believe that implementation of CRM will

influence on keeping old customer

Source. Adapted from Nguyen and Waring,

2013; Newby et al., 2014

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I believe that implementation of CRM will

influence on identifying new customers

Source. Adapted from Mai et al., 2014

I am worried that the new system will increase

my workload

Source. Adapted from Vakola and Nikolaou

2005; Shum et al. 2008

Open-ended questions

1. How often would you like to receive training? How do you prefer training were

given?

Source: Adapted from Shum et al., 2008

----------------------------------------------------------------------------------------------------------

2. What is your biggest concern related to this change implementation? Why?

Source. Adapted from Vakola and Nikolaou 2005; Shum et al. 2008

---------------------------------------------------------------------------------------------------------------

3. Would you like to be involved and informed in the implementation process? How?

Source: Adapted from Nguyen and Waring, 2013

---------------------------------------------------------------------------------------------------------------

Demographic Information

1. Gender: □ Female □ Male

2. Age: □ Below 20 □ 21-30 □ 31-40 □ 41-50 □ 51-

60 □ Over 60

3. Educational Level: □ Below high school □ High school diploma □Bachelor □Master □ PhD

□ Others (please specify: ___________)

5- Current Position in Mekano

6- Number of years within the company

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Appendix II – Survey Questionnaire (Swedish Version)

Del A: Förutsättning för att implementera CRM i små och medelstora företag

Vänligen fyll i (✓) lämpligt nummer som indikerar hur mycket ni håller med eller inte håller

med

1=Håller verkligen inte med 2=Håller inte med 3=varken eller 4=instämmer

5=instämmer verkligen

Engagemang till förändring 1 2 3 4 5

Ledningens support kommer öka mit t

engagemang till förändring

Källa: Hämtad från Turner et al., 2008

Jag kan identifiera mig själv i denna

organisation och känner mig hemma här

Källa: Hämtad från Rhoades et al. (2001);

Vakola and Nikolaou, 2005

Organisationen har resurser för att bemöta

problematiska situationer som kan uppkomma

under förändringen

Källa: Hämtad från Fazlzadeh et al., 2011

Organisationskultur

Jag upplever att min organisation uppmuntrar

förändring och har en stödjande arbetsmiljö

60

Källa: Hämtad från Chen and Popovich, 2003;

Fazlzadeh et al., 2011

Jag upplever att organisationen uppmanar till

samarbete och lagarbete med mina kollegor

Källa: Hämtad från Shang and Lin, 2010

Jag upplever att organisationen uppmuntrar en

risktagande arbetsmiljö

Source: Hämtad från Iriana et al., 2013; Rahimi

and Gunlu, 2016; Rahimi, 2017

Arbetskulturen i denna organisation är att delge

information med kollegorna

Källa: Hämtad från Shang and Lin, 2010

Mellan avdelningar och Cross

funktionell integrering

Jag tycker om att genomföra cross funktionellt

arbete mellan avdelningarna

Källa: Hämtad från Rahimi and Gunly, 2016;

Rahimi, 2017

Jag kommer bli mer engagerad till förändring

om jag får förståelse för cross funktionellt

arbete mellan avdelningarna

Källa: Hämtad från Shum et al., 2008

Anställda är vana vid att samarbeta och

genomföra uppgifter tillsammans med andra

avdelningar

Källa: Hämtad från Shang and Lin, 2010

61

Jag upplever att alla våra avdelningar är

strukturerade runt kunden

Källa: Hämtad från Chang et al., 2010

Träning

Träning kommer underlätta rollfördelningen

under implementationsfasen

Källa: Hämtad från Shum et al., 2008

Träning underlättar att komma över

integrationsbarriärer och kommer göra mig

mer engagerad till att acceptera förändring

Källa: Hämtad från Shum et al., 2008

Träning borde vara obligatoriskt för alla

anställda

Källa: Hämtad från Shum et al., 2008

Jag är villig att genomföra träning under flera

tillfällen för att förnya och förbättra mina

färdigheter

Källa: Hämtad från Shum et al., 2008

Om inte rätt träning ges, lär jag bli frustrerad

och eventuellt säga upp mig från

organisationen

Källa: Hämtad från Shum et al., 2008;

Kaliprasad (2006)

Kommunikation

62

Jag har tillräckligt med information och

förståelse varför förändring är nödvändigt

Källa: Hämtad från Shum et al., 2008, Chen and

Popovich, 2003; Nguyen and Waring, 2013

Jag kan se min plats i anpassningsprocessen

och vet hur jag kan bidra

Källa: Hämtad från Nguyen and Waring, 2013;

Chen and Popovich, 2003

En tydlig kommunikationsplan kommer

underlätta min acceptans till förändring

Källa: Hämtad från Long and Spurlock, 2008

Jag vet vad jag kan förvänta mig av CRM

systemet

Källa: Hämtad från Shum et al., 2008; Eichorn ,

2004

Teknologi

Jag förväntar mig ett användarvänligt och

lättlärt system

Källa: Hämtad från Navimipour and Soltani,

2016; Shum et al., 2008

Ett ordentligt CRM system kommer underlätta

mitt arbete, uppmuntra aktivt deltagande och

minimera roll otydligheter

Källa: Hämtad från Shum et al., 2008

63

Jag förväntar mig att systemet underlättar

informationsdelning mellan kollegor och

avdelningar

Källa: Hämtad från Shum et al., 2008

Jag förväntar mig övergripande

kundinformation för att underlätta

kundhanteringen

Källa: Hämtad från Shum et al., 2008

Toppledningens support

Jag förväntar mig att förstå syfte, vision och

vilka förändringar CRM väntas medföra

Källa: Hämtad från Shum et al., 2008

Jag upplever att organisationen har tillräckliga

resurser för att klara av denna förändring

Källa: Hämtad från Fazlzadeh et al., 2011

Jag förväntar mig att toppledning och

mellanchefer är involverad under hela

implementationen och stödjer mig under hela

förändringsprocessen

Källa: Hämtad från Shum et al., 2008; Turner et

al., 2008

Jag vill bli involverad i

beslutfattningsprocessen

Källa: Hämtad från Shum et al., 2008; Nguyen

and Waring, 2013; Rahimi, 2017

64

Ordentlig systemträning kommer underlätta

min rollförståelse under implementationsfasen

Källa: Hämtad från Shum et al., 2008

Jag vill veta de beslut som ledningen tar och

hur de kan underlätta för organisationen

Källa: Hämtad från Nguyen and Waring, 2013

Del B: Anställdas uppfattning av en organisationsförändring

Vänligen fyll i (✓) lämpligt nummer som motsvarar hur mycket

instämmer eller inte instämmer

1= Håller verkligen inte med 2=Håller inte med

3=varken eller 4=instämmer 5=instämmer verkligen

1 2 3 4 5

Jag tror att en organisationsförändring kommer

förbättra organisationens prestation

Källa: Hämtad från: Patton et al., 2000; Turner

et al., 2008

Jag tror på en organisationskultur som

uppmuntrar risktagande och innovation där jag

kan arbeta för kundens intresse

Källa: Hämtad från Rahimi and Gunly, 2016;

Rahimi, 2017

Jag tror att CRM implementering kommer

förbättra och utveckla

organisationskommunikationen med

nuvarande kunder

65

Källa: Hämtad från Reicher and Szeghegyi

(2015); Özgener and İraz, 2006; Fazlzadeh et

al., 2011

Jag tror att CRM implementering kommer

påverka nuvarande kunder att stanna hos oss

Källa: Hämtad från Nguyen and Waring, 2013;

Newby et al., 2014

Jag tror att CRM implementering kommer

underlätta identifiering av nya kunder

Källa: Hämtad från Mai et al., 2014

Jag är orolig att det nya systemet kommer öka

min arbetsbelastning

Källa: Hämtad från Vakola and Nikolaou 2005;

Shum et al. 2008

Öppna frågor

4. Hur ofta skulle du vilja genomföra träning? Hur önskar du träning gavs?

Källa: Hämtad från Shum et al., 2008

----------------------------------------------------------------------------------------------------------

5. Vad är din största oro relaterat till denna förändring? Varför? Källa: Hämtad från Vakola

and Nikolaou 2005; Shum et al. 2008

---------------------------------------------------------------------------------------------------------------

6. Skulle du vilja vara involverad och informerad i implementationsprocessen? Hur?

Källa: Hämtad från Nguyen and Waring, 2013

---------------------------------------------------------------------------------------------------------------

Demografisk Information

Kön: □ Kvinna □ Man

66

Ålder: □ Under 20 □ 21-30 □ 31-40 □ 41-50

□ 51-60 □ Över 60

Utbildningsnivå: □ Grundskola □ Gymnasium □Kandidatexamen

□Masterexamen □ Doktorsexamen □ Annan, vänligen specificera

Nuvarande position på Mekano

Antal år anställda på Mekano