The relationship between marketing capabilities and financial performance: the moderating role of customer relationship management in Jordanian SMES

Figures & data

Figure 1. Research framework.

Table 1. Common method bias result.

Component	Initial Eigenvalues			Extraction sums of squared loadings
	Total	% of Variance	Cumulative %	Total	% of Variance	Cumulative %
1	28.187	38.612	38.612	28.187	38.612	38.612

Table 2. Variance inflation factors results.

Variables	Firm performance
Customer Relation Management	2.819
Customer Value Creation	2.856
Marketing Communication Effectiveness	2.110
Product Innovation	1.857

Table 3. Validity and reliability.

	Cronbach’s alpha	Composite reliability (rho_a)	Composite reliability (rho_c)	Average variance extracted (AVE)
Customer Acquisition	0.876	0.877	0.924	0.802
Customer Relation	0.831	0.835	0.899	0.748
Customer Relation Management	0.903	0.904	0.925	0.673
Customer Satisfaction	0.828	0.83	0.897	0.745
Financial Performance	0.862	0.865	0.901	0.647
Marketing Orientation	0.869	0.88	0.903	0.610
Operational Capabilities	0.897	0.898	0.924	0.709
Value Innovation	0.886	0.902	0.901	0.604

Table 4. Measurement model and findings.

	Customer _Acquisition	Customer _Relation	Customer _Relation _Management	Customer _Satisfaction	Financial _Performance	Marketing _Orientation	Operational _Capabilities	Value _Innovation	Customer _Relation _Management x Operational _Capabilities	Customer _Relation _Management x Marketing _Orientation	Customer _Relation _Management x Value _Innovation
CA1			0.844
CA1	0.879
CA2	0.89
CA2			0.824
CA3			0.859
CA3	0.916
CR1			0.883
CR1		0.901
CR2		0.844
CR2			0.786
CR3		0.847
CR3			0.779
CS1			0.835
CS1				0.900
CS2				0.857
CS		0.876
CS3			0.779
CS3				0.831
FP1					0.814
FP2					0.842
FP3					0.866
FP4					0.766
FP5					0.726
MO1						0.779
MO2						0.766
MO3						0.807
MO4						0.821
MO5						0.881
MO6						0.604
OC1							0.795
OC2							0.839
OC3							0.842
OC4							0.872
OC5							0.861
VI1								0.762
VI2								0.745
VI3								0.738
VI4								0.745
VI5								0.750
VI6								0.744
VI7								0.710
VI8								0.711
VI9								0.777
Customer _Relation _Management × Value _Innovation											1
Customer _Relation _Management × Marketing _Orientation										1
Customer _Relation _Management × Operational _Capabilities									1

Table 5. Fornell-Larcker criterion.

Variables	Customer Acquisition	Customer _Relation	Customer Relation Management	Customer Satisfaction	Financial Performance	Marketing Orientation	Operational Capabilities	Value Innovation
Customer Acquisition	0.895
Customer Relation	0.688	0.865
Customer Relation Management	0.641	0.603	0.820
Customer Satisfaction	0.689	0.658	0.629	0.863
Financial Performance	0.613	0.622	0.657	0.612	0.804
Marketing Orientation	0.604	0.669	0.683	0.660	0.639	0.781
Operational Capabilities	0.562	0.564	0.620	0.603	0.662	0.591	0.842
Value Innovation	0.663	0.654	0.689	0.648	0.691	0.625	0.540	0.710

Table 6. Heterotrait–Monotrait ratio.

Variables	Customer Acquisition	Customer Relation	Customer Relation Management	Customer Satisfaction	Financial Performance	Marketing Orientation	Operational Capabilities	Value Innovation	Customer Relation Management x Operational Capabilities	Customer Relation Management x Marketing Orientation
Customer Acquisition
Customer Relation	0.674
Customer Relation _Management	0.455	0.744
Customer Satisfaction	0.626	0.734	0.775
Financial Performance	0.722	0.754	0.659	0.644
Marketing Orientation	0.705	0.703	0.682	0.693	0.554
Operational Capabilities	0.631	0.653	0.687	0.701	0.66	0.661
Value Innovation	0.679	0.67	0.683	0.663	0.702	0.726	0.532
Customer Relation Management × Operational Capabilities	0.151	0.144	0.139	0.138	0.18	0.076	0.162	0.097
Customer Relation Management × Marketing _Orientation	0.27	0.316	0.286	0.276	0.141	0.213	0.067	0.123	0.558
Customer Relation Management × Value Innovation	0.241	0.234	0.23	0.207	0.153	0.144	0.037	0.142	0.48	0.813

Figure 2. Result of path analysis.

Table 7. Result of path analysis.

Relationship	Estimate	Standard deviation	T statistics	p values	Decision
Marketing Orientation -> Financial Performance	0.211	0.063	3.346	.001	Accept
Value Innovation -> Financial Performance	0.152	0.053	2.878	.004	Accept
Operational Capabilities -> Financial Performance	0.391	0.043	9.191	.000	Accept
Customer Relation _Management × Operational Capabilities -> Financial _Performance	0.090	0.039	2.318	.021	Accept
Customer Relation Management × Marketing Orientation -> Financial _Performance	0.141	0.048	2.935	.003	Accept
Customer Relation Management × Value _Innovation -> Financial _Performance	0.093	0.047	1.976	.048	Accept