Strategic Role of Customer Relationship Management (CRM) In Leveraging Competitiveness of Private Universities in Kenya

Abstract

This study investigated the strategic importance of Customer Relationship Management (CRM) in improving the competitiveness of private universities in Kenya. It evaluated the influence of CRM policy framework, technological systems, service delivery management, and collaboration networks on competitiveness, and assessed the moderating effect of institutional factors. Guided by CRM Theory, Relationship Marketing Theory, and the SERVQUAL model, the study adopted a mixed-methods cross-sectional descriptive design. The target population comprised 36 private universities and 432 respondents, from which a sample of 204 participants across 17 institutions was selected using stratified, purposive, and convenience sampling. Data were gathered using questionnaires, interviews, and focus group discussions. Validity was ensured through expert review, pilot testing, and factor analysis, while reliability (Cronbach’s Alpha > 0.7) confirmed instrument consistency. Quantitative data were analysed using SPSS v30 and AMOS, while qualitative data were analysed thematically. Findings revealed that all CRM dimensions significantly influence competitiveness, explaining 55.5 per cent of the variance. CRM systems, service processes, and collaboration emerged as key drivers, though limited ERP integration constrained effectiveness. Institutional factors significantly moderated the CRM competitiveness relationship. The study concludes that CRM is a critical enabler of competitiveness and recommends an integrated, technology-driven, and institutionally aligned CRM approach.