CRM, service quality and organizational performance in the banking industry: a comparative study of conventional and Islamic banks

Abstract

Purpose

This paper aims to examine a model that uses customer service quality as an intervening mechanism in the relationship between customer relationship management (CRM) practices and organizational performance in two different banking structures: conventional and Islamic. The study focuses on organizational and technological practices of CRM, as both have been demonstrated to be critical to CRM success.

Design/methodology/approach

The analysis is based on responses from 247 managers from conventional banks and 141 managers from Islamic banks operating in Morocco using a self-administered questionnaire. The partial least squares structural equation modeling (PLS-SEM) technique is employed for data analysis.

Findings

Findings demonstrate that customer service quality plays a mediating role between CRM practices (organizational and technological) and organizational performance in both conventional and Islamic banks. Our results confirm the positive impact of CRM practices on organizational performance in the two banking structures.

Practical implications

This study enhances our understanding of how CRM practices contribute to improving customer service quality and organizational performance in both conventional and Islamic banks. Bank managers, who aim to deliver superior service quality and achieve customer satisfaction and retention, should capitalize on the benefits of implementing CRM organizational and technological practices.

Originality/value

The present paper bridges a gap pertaining to key practices and factors that impact CRM success in the banking industry. It is the first of its kind to investigate the effect of CRM practices on organizational performance with customer service quality as a mediating variable. The study also contributes to the field of CRM literature, as CRM has rarely been addressed in an Islamic banking context.

Citation

Lebdaoui, H. and Chetioui, Y. (2020), "CRM, service quality and organizational performance in the banking industry: a comparative study of conventional and Islamic banks", International Journal of Bank Marketing, Vol. 38 No. 5, pp. 1081-1106. https://doi.org/10.1108/IJBM-09-2019-0344