SEM for Predicting in Determining Factor of Social Customer Relationship Management Adoption in SMEs

Abstract

The increasing use of social media is challenging the old concept of customer relationship management (CRM). Social CRM strategy is a new model of CRM that applies social technology by presenting a new way to manage customer relationships. Compared to traditional CRM, social media is an affordable tool for SMEs to compete in the global market. Although the application of social CRM can increase business in SMEs, the implementation of social CRM still requires various conditions, especially for SMEs with limited resources. So for the adoption of social CRM, it is necessary to determine the factors that influence the adoption of social CRM in SMEs. This study aims to predict the adoption of social CRM by proposing a TOEP application model and developing several hypotheses that test the function of technology factors, Organizational factors, Environment factors, and Information Process factors. The proposed hypothesis model was tested using the SEM method on data taken from SMEs in the Banyumas area with a sample of 115 SMEs. This study finds that Relative Advantage, Complexity, Compatibility CRMS, Employee IT/SI Knowledge, Government Support, Information Use, Information Retrieval are the most important factors influencing the adoption of social CRM. This study differs from previous studies because it proposes a new model, namely the TOE adoption model and the information process factor as an additional factor to determine the factors that affect social CRM in SMEs.