The Nexus Between CRM Capabilities and Sustainable Competitive Advantage in the South African Retail Sector: The Moderating Role of AI

Abstract

Purpose: Despite the growing importance of customer relationship management CRM capabilities in attaining a sustainable competitive advantage (SCA), limited research exists on their relationship with artificial intelligence (AI) in the South African retail sector. This study examines the connection between CRM capabilities and SCA, with AI as a moderating factor. It explores how AI-driven CRM capabilities enhance SCA. Theoretical approach: Grounded in the relationship marketing theory, the resource-based view (RBV) and the dynamic capabilities view (DCV), the study investigates CRM capabilities, customer interaction management (CIMC), customer relationship upgrading (CRUC), customer win-back (CWBC) and AI’s moderating role. Design/Methodology/Analysis: A quantitative approach was used, with data collected from 286 South African retail sector employees via self-administered online surveys. Structural equation modelling (SEM) assessed relationships between CRM capabilities, AI and SCA. Findings: CRM capabilities significantly impact SCA, with CIMC and CRUC showing the strongest influence. AI moderates these relationships, enhancing organisations' customer retention and operational efficiency. AI-powered CRM capabilities help organisations adapt to market changes and strengthen SCA. Originality/Value: This study fills a gap in South African retail research by exploring AI- enhanced CRM capabilities role in SCA. Findings offer insights for organisations aiming to leverage AI in CRM capabilities and strategies for sustained growth