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Table 3.
Results of mediating effects.
Note
: N
=
314. IV
=
Independent Variable; DV
=
Dependent Variable, H
=
Hypothesis; ***p
<
.001;***p
<
.001.
because the two independent variables were signifi-
cant predictors of the mediator with CRM training
orientation (p
Reinartz and Kumar (2003). The findings provide
further support to the suggestion that superior
CRM capability lead to higher CRM profitability.
Superior CRM capability provides the necessary
capabilities for improving employees and organiza-
tion skills and capabilities to uncover new market,
segments, establishing long term relationship with
new and existing customers.
By improving capabilities of employees and
organization, hotels are better positioned to
set reasonable strategies. Specifically, the paper
found that superior CRM capability is a mediator
between CRM training orientation, CRM organi-
zation-wide and CRM profitability. The effect of
CRM training orientation on CRM profitability
was fully mediated by superior CRM capabilities
(Hypothesis 2). The results suggested that there
is no direct effect from CRM training orientation
to CRM profitability. This finding is inconsistent
to previous research' results that suggested CRM
training had a direct effect to customer outcome
and CRM profitability (Kim, 2008). They found
that training orientation leads to increase cus-
tomer satisfaction and create a good relationship
with customer by reducing operational errors and
enhancing attitude and behavior of CRM employ-
ees. However, this study indicated that CRM
training orientation increases the organization
competitive advantage by increasing the superior
CRM capability for employees and organizations
to reach CRM profitability.
Besides, this study showed that the effect of CRM
organization-wide was partly mediated by superior
CRM capabilities (Hypothesis 3). It means that
there is a direct effect from CRM organization-
wide to CRM profitability due to partial media-
tion by superior CRM capability. This finding is
consistent with Wang and Feng (2012). Superior
CRM capability will be improved by connecting
all departments and functions in an organization.
<
.001) and CRM organization-wide
(p
.01). Model 2 measured the effect of mediator,
superior CRM capabilities to dependent variable,
CRM profitability (R
2
<
.001). CRM had
a positive impact on CRM profitability (p
=
.09, p
<
.001).
This suggested that Hypothesis 1 was supported.
Model 3 satisfied the third condition of examining
the mediating effect by measuring the effect of Inde-
pendent Variable to Dependent Variable (R
2
<
=
.09,
p
.001). There was a significant positive effect
between the CRM training orientation (p
<
<
.05) and
CRM organization (p
.05). Model 4 measured
the effect of independent variables and mediator
to dependent variable R
2
<
.001). Model 3
fits the last condition of Baran and Kenny's (1986)
because superior CRM capabilities had a significant
impact to CRM profitable (p
=
0.11, p
<
.01). CRM training
orientation had no significant effect to CRM profit-
ability in model 4 (p
<
.05), indicating that the effect
of CRM training orientation to CRM profitabil-
ity is fully mediated by superior CRM capabilities.
Hypothesis 2 was rejected. Whereas CRM organi-
zation-wide had a significant effect to CRM profit-
ability in model 4 (p
>
.05), suggesting that the effect
of CRM organization-wide to CRM profitability
is partly mediated by superior CRM capabilities.
Hypothesis 3 was accepted. Size of firm had a posi-
tive effect in all models with different p-value. More-
over, educational level also had a positive impact on
CRM profitability (p
<
<
.05).
5
CONCLUSIONS AND IMPLICATIONS
5.1
Theoretical implications
The results showed that superior CRM capa-
bilities had positive impact on CRM profitability
(Hypothesis 1). That finding is consistent with
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