Purpose  of  Study: The purpose of this preliminary study is to determine the reliability and validity of the instrument used and feasible for full-scale analysis of the aforementioned studied phenomenon. PLS-SEM is employed in this preliminary study that utilised SmartPLS 3.0.

Methodology: Drawing on RBV (resource-based view) the implementation of customer relationship management (CRM) functions in hotel industry had become a central strategy in determining competitive advantage. Empirical studies had documented that small and medium hotels had also embraced on customer-centric business practice that endures CRM functions as their strategy in sustaining competitive advantage. Indeed, they inclines to implement elementary CRM functions that leverage the IBT’s (internet-based technologies) of hotel website. CRM functions is regarded as firms’ resource that effectively deployed may lead to competitive advantage that portray in positive business performance. A total of seventy-five respondents (managers and owners) of small and medium hotels managers and owners from Greater Kuala Lumpur participated in the survey realised through convenient sampling method.

Main Findings: The result of PLS-SEM analysis on measurement model had showed a robust analysis of internal reliability and validity. Assessment of items and constructs included in the study exhibits a good internal consistency and valid, thus, reflects an acceptable research model that are feasible and ready a full-scale analysis.


  1. Adewale, A.A., 2016. Effect of demographic factors on entrepreneurial culture: A study of university students in Metropolitan Kano. American Journal of Social Sciences and Humanities, 1(1): 10-34.
  2. Agbim, K.C. and J. Eluka, 2018. Social network and family business internationalization in South Eastern Nigeria. Journal of Accounting, Business and Finance Research, 3(2): 64-74.
  3. Al-Refaie, A., M.D.A. Tahat and N. Bata, 2014. CRM/e-CRM effects on banks performance and customer-bank relationship quality. International Journal of Enterprise Information Systems,, 10(2): 62–80.Available at: https://doi.org/10.4018/ijeis.2014040104.
  4. Ametorwo, A.M., 2016. Managing work family conflict among female entrepreneurs in Ghana for development. International Journal of Economics, Business and Management Studies, 3(1): 21-35.
  5. Anderson, J.C. and D.W. Gerbing, 1988. Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3): 411–423.Available at: https://doi.org/10.1037/0033-2909.103.3.411.
  6. Bachev, H., 2018. Management and Agrarian sustainability-impact of institutions in Bulgaria. International Journal of Management and Sustainability, 7(2): 113-142.
  7. Bugu, Z.Y. and H. Yucheng, 2018. An empirical analysis of the factors affecting the profitability of China’s agricultural listed companies under the background of agricultural modernization. International Journal of Applied Economics, Finance and Accounting, 2(1): 19-26.
  8. Chen, J.S. and R.K.H. Ching, 2007. An examination of the effects of information and communication technology on customer relationship management and customer lock-in. Electronic Customer Relationship Management, 3(5): 127–146.
  9. Cho, E. and S. Kim, 2015. Cronbach’s coefficient alpha: Well known but poorly understood. Organizational Research Methods, 18(2): 207–230.Available at: https://doi.org/10.1177/1094428114555994.
  10. Compeau, D., C.A. Higgins and S. Huff, 1999. Social cognitive theory and individual reactions to computing technology: A longitudinal study. MIS Quarterly, 23(2).
  11. Diffley, S., P. McCole and E. Carvajal-Trujillo, 2018. Examining social customer relationship management among Irish hotels. International Journal of Contemporary Hospitality Management, 30(2): 1072–1091.Available at: https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216.
  12. Essayyad, M., M. Palamuleni and C. Satyal, 2018. Remittances and real exchange rates in South Asia: The case of Nepal. Asian Economic and Financial Review, 8(10): 1226-1238.
  13. Feinberg, R.A., L. Hokama and I. Kim, 2002. The state of electronic customer relationship management in retailing. International Journal of Retail & Distribution Management, 30(10): 470–481.Available at: https://doi.org/10.1108/09590550210445344.
  14. Fróis, J., P.M. Teresa and F.A. Ferreira, 2019. How a CRM tool can contribute to a better business performance: The case of a shipping company. Lecture Notes in Electrical Engineering, 505: 811–817.Available at: https://doi.org/10.1007/978-3-319-91334-6_111.
  15. Garson, G.D., 2016. Partial least square: Regression & structural equation models. Asheboro, USA: Statistical Publishing Associates.
  16. Gefen, D. and D. Straub, 2005. A practical guide to factorial validity using PLS-Graph: Tutorial and annotated example. Communications of the Association for Information Systems, 16(1): 91–109.
  17. Ghozali, I. and H. Latan, 2015. Partial least squares, concepts, techniques and applications using the smartpls 3.0 program for empirical research. UNDIP Publishing Agency.
  18. Gunawardana, H., D.A. Tantrigoda and U.A. Kumara, 2018. Integrating sustainable land management for post-conflict economic recovery. Asian Development Policy Review, 6(3): 129-141.
  19. Ha, S.T., M.C. Lo and Y.C. Wang, 2016. Relationship between knowledge management and organizational performance: A test on SMEs in Malaysia. Procedia - Social and Behavioral Sciences, 224(August 2015): 184–189.Available at: https://doi.org/10.1016/j.sbspro.2016.05.438.
  20. Hair, J., M. Sarstedt and C.M. Ringle, 2017. Partial least squares structural equation modeling.Available at: https://doi.org/10.1007/978-3-319-05542-8.
  21. Hair, J.F., R.E. Anderson, R.L. Tatham and W.C. Black, 2010. Multivariate data analysis. 7th Edn., New Jesey: Prentice Hall.
  22. Hair, J.F., G.T.M. Hult, C.M. Ringle and M. Sarstedt, 2017. A primer on partial least squares structural equation modeling (PLS-SEM) (2nd Edn). Thousand Oaks, CA: SAGE Publications.
  23. Hair, J.F., C.M. Ringle and M. Sarstedt, 2011. PLS-SEM: Indeed a silver bullet. The Journal of Marketing Theory and Practice, 19(2): 139–152.Available at: https://doi.org/10.2753/MTP1069-6679190202.
  24. Hair, J.F., M. Sarstedt, T.M. Pieper and C.M. Ringle, 2012. The use of partial least squares structural equation modeling in strategic management research: A review of past practices and recommendations for future applications. Long Range Planning, 45(5–6): 320–340.Available at: https://doi.org/10.1016/j.lrp.2012.09.008.
  25. Hulland, J., 1999. Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2): 195–204.Available at: https://doi.org/10.1002/(SICI)1097-0266(199902)20:2<195::AID-SMJ13>3.3.CO;2-Z.
  26. Hulland, J., H. Baumgartner and K.M. Smith, 2017. Marketing survey research best practices: Evidence and recommendations from a review of JAMS articles. Journal of the Academy of Marketing Science, 46(1): 92–108.Available at: https://doi.org/10.1007/s11747-017-0532-y.
  27. Iyiola, O., 2014. Supporting tourism business in Nigeria via integrated marketing. Journal of Tourism Management Research, 1(2): 27-39.
  28. Jabarullah, N.H. and H.I. Hussain, 2019. The effectiveness of problem-based learning in technical and vocational education in Malaysia, education + training.Available at: https://doi.org/10.1108/ET-06-2018-0129.
  29. Jang, S., C. Hu and B. Bai, 2006. Tourism and hospitality research e-relationship marketing and hotel. Tourism and Hospitality Research, 6(4): 241–250.Available at: https://doi.org/10.1057/palgrave.thr.6050024.
  30. Josiassen, A., A.G. Assaf, L.K. Cvelbar and L. Knezevic, 2014. CRM and the bottom line: Do all CRM dimensions affect firm performance? International Journal of Hospitality Management, 36: 130–136.Available at: https://doi.org/10.1016/j.ijhm.2013.08.005.
  31. Kaleka, A. and N.A. Morgan, 2017. Which competitive advantage(s)? Competitive advantage–market performance relationships in international markets. Journal of International Marketing, 25(4): 25–49.Available at: https://doi.org/10.1509/jim.16.0058.
  32. Kamaruddin, R. and S. Samsudin, 2014. The sustainable livelihoods index: A tool to assess the ability and preparedness of the rural poor in receiving entrepreneurial project. Journal of Social Economic Research, 1(6): 108-117.
  33. Kamyab, S.H., 2014. The entrepreneurship, knowledge spillover and economic growth. International Journal of Sustainable Development & World Policy, 3(2): 45-54.
  34. Kaplan, R.S. and D.P. Norton, 1992. The balanced scorecard –measures that drive performance the balanced scorecard – measures. January–February: 71–79.
  35. Kaplan, R.S. and D.P. Norton, 2001. Commentary: Transforming the balanced scorecard from performance measurement to strategic management: Part II. Accounting Horizons, 15(2): 14.
  36. Latan, H. and N.A. Ramli, 2013. The results of partial least squares-structural equation modelling analyses (PLS-SEM). SSRN Electronic Journal: 1–35.Available at: https://doi.org/10.2139/ssrn.2364191.
  37. Maggon, M. and H. Chaudhry, 2015. Revisiting relationship marketing and customer relationship management in leading tourism and hospitality journals: Research trends from 2001 to 2013. Journal of Relationship Marketing, 14(1): 53–77.Available at: https://doi.org/10.1080/15332667.2015.1022110.
  38. Maldonado-Guzman, G., S.Y. Pinzon-Castro and R.M. Rodriguez-Gonzalez, 2018. Brand management, competitiveness and business performance in Mexican small service businesses. International Journal of Asian Social Science, 8(10): 898-908.
  39. Memon, M.A., H. Ting, T. Ramayah, F. Chuah and J.H. Cheah, 2017. A review of the methodological misconceptions and guidelines related to the application of structural equation modeling.
  40. Ming, V., J. Chen and J.W. Huang, 2002. Building a value model of CRM system through value-focus thinking and QFD.
  41. Mohamad, S.H., N.A. Othman, J. Jabar and I.A. Majid, 2014. Customer relationship management practices: The impact on organizational performance in SMEs of food manufacturing industry. European Journal of Business and Management, 6(13): 2222–2839.
  42. Mohammed, A.A. and B. Bin Rashid, 2012. Customer relationship management (CRM) in hotel industry: A framework proposal on the relationship among CRM dimensions, marketing capabilities and hotel performance. International Review of Management and Marketing, 2(4): 220–230.
  43. Norshidah, M., M. Murni, H. Ramlah and A. Umar, 2013. Moving toward e-business: Customer relationship management alignment in Malaysian small business. International Journal of Ebusiness and Egovernment Studies, 5(2): 112–121.
  44. Obi, M.N. and J. Okekeokosisi, 2018. Extent of implementation of national entrepreneurship curriculum in tertiary institutions as perceived by educators. American Journal of Education and Learning, 3(2): 108-115.
  45. Okafor, C. and I. Shaibu, 2016. Modelling economic growth function in Nigeria: An ARDL approach. Asian Journal of Economics and Empirical Research, 3(1): 84-93.
  46. Panayides, P., 2013. Coefficient alpha: Interpret with caution. Europe’s Journal of Psychology, 9(4): 687–696.Available at: https://doi.org/10.5964/ejop.v9i4.653.
  47. Proctor, T., 2005. Essentials of marketing research. Pearson Education.
  48. Raykov, T., 2008. Alpha if item deleted: A note on loss of criterion validity in scale development if maximizing coefficient alpha. British Journal of Mathematical and Statistical Psychology, 61(2): 275–285.Available at: https://doi.org/10.1348/000711007X188520.
  49. Rodriguez, M., R.M. Peterson and V. Krishnan, 2018. Impact of CRM technology on sales process behaviors: Empirical results from US, Europe, and Asia. Journal of Business-to-Business Marketing, 25(1): 1–10.Available at: https://doi.org/10.1080/1051712X.2018.1424754.
  50. Schendel, D. and R. Patton, 1978. A simultaneous equation model of corporate str.Ategy.Pdf. Management Science, 24(15): 1611–1621.
  51. Schmitt, N., 1995. Uses and abuses of coefficient alpha. 4: 350–353.
  52. Sigala, M., 2003. Implementing customer relationship management in the hotel sector: Does “IT” always matter? In Conference Paper. pp: 16–23.
  53. Street, C.A. and A.F. Cameron, 2007. WP 04-15 external relationships and the small business: A review of small business alliance and network research. Journal of Small Business Management, 45(2): 239–266.
  54. Udanoh, M.U. and A. Zouria, 2018. Using gender inequality to predict the rate of African women entrepreneurship. International Journal of Emerging Trends in Social Sciences, 3(1): 17-28.
  55. Venkatraman, N. and V. Ramanujam, 1986. Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11(4): 801–814.Available at: https://doi.org/10.5465/AMR.1986.4283976.
  56. Wu, S. and J. Chen, 2012. Comparison between hotels and motels using CRM effect model – an empirical study in Taiwan. International Journal of Hospitality Management, 31(4): 1254–1263.Available at: https://doi.org/10.1016/j.ijhm.2012.03.005.
  57. Wu, S.I. and C.L. Lu, 2012. The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan. International Journal of Hospitality Management, 31(1): 276–285.Available at: https://doi.org/10.1016/j.ijhm.2011.06.012.
  58. Wye, C.K. and Y.M. Lim, 2014. Analyzing skill profile among business graduates: Is it generic or specific? International Journal of Business, Economics and Management, 1(5): 57-71.