The Role of Digital Readiness in Moderating the Influence of Electronic Customer Relationship Management (E-CRM) on MSME Business Performance

Suprianto Suprianto

Abstract


This study aims to analyze the influence of Electronic Customer Relationship Management (e-CRM) on MSME business performance and examine the role of digital readiness as a moderating variable in this relationship. The background of the study is based on the still low level of adoption and utilization of digital technology by MSMEs, especially in customer relationship management, which has the potential to impact business performance sustainably. This study uses a quantitative approach with a survey method of 161 MSMEs in Central Java Province who have implemented digital marketing. Data were collected through questionnaires and analyzed using the Partial Least Squares– Structural Equation Modeling (PLS-SEM) method with the help of SmartPLS 4.0 software. The results of the study indicate that e-CRM has a positive and significant effect on MSME business performance. In addition, digital readiness has also been shown to have a positive and significant effect on business performance. The results of the moderation test revealed that digital readiness can strengthen the influence of e-CRM on business performance, which indicates that the implementation of e-CRM will provide more optimal results if supported by adequate digital readiness. These findings provide theoretical contributions in clarifying the inconsistencies in previous research results and provide practical implications for MSME actors and policy makers in designing strategies to strengthen digital transformation to improve MSME business performance sustainably.


Keywords


Business; Digital; Performance; Readiness.

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References


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DOI: http://dx.doi.org/10.30659/jrbi.v23i2.52829

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