Determinants Of The Adoption Of Customer Relationship Management (CRM) In Malaysian Small And Medium-sized Enterprises (SMEs)

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Globalization, increasing competition and advances in communication and information technology have forced companies to focus on managing customer relationships in order to efficiently maximize revenues. Customer relationship management (CRM) is the key competitive strategy whereby businesses need to stay focused on the needs of the customers and to integrate a customer focused approach throughout the organization. Research demonstrates that CRM is increasingly seen as vital by SMEs. For most SMEs, customer service and customer relationships are major sources of competitive advantage and CRM improves SMEs’ ability to perform these tasks.
In spite of widespread practical uses of CRM in many business sectors, the main factors that really influence the adoption of CRM in SMEs are seldom investigated in the available literature. Therefore, this study tries to investigate the factors that influence the adoption of CRM among Malaysian SMEs which was noticeably absent in prior studies. Due to its growing importance, the small and medium-sized enterprises (SMEs) will be considered as the focus of the study. Based on literature, five factors, namely people, technology, top management support, government support and cost effectiveness were identified as determinants to the adoption of CRM in SMEs.

Additional information

Research Author

Ehsan Abedyan


Dr.Veeri Chettier Arumugam

Research Location


Data Type


Sampling Size

75 nos of Small and Medium Enterprises



Year Created



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Multimedia University (MMU), a tertiary education institution set up through Universiti Telekom Sdn Bhd (UTSB), a wholly owned subsidiary of TM, fulfils the noblest of corporate social responsibilities – taking up the challenge of educating the next generation the nation’s leaders and knowledge workers. As the first private university in Malaysia, MMU developed the pioneer model for the successful establishment of private universities in the nation, paving the way for the growth of the private tertiary education sector. As the university at the heart of the MSC, MMU also serves as a catalyst for the development of the high tech ICT industry of the nation, parallel to the Silicon Valley-Stanford model in the United States.