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An effective customer relationship management (CRM) makes a significant contribution to building strong customer royalty and sound financial base of hotel. Though existing literature has stressed significance of information system as a core component of corporate-level CRM, this paper focuses on individual-level CRM competence of frontline employees in hotels. Frontline employees are in charge of providing face-to-face customer services and their inter-personal competence is an essential factor of effective CRM in hotels. With the goal of identifying predictor of CRM competence of frontline employees, this study examines the characteristics and influence of knowledge management practices, including 1) knowledge sharing among peers, 2) corporate training and education, 3) customer database system, and 4) job rotation. Based on a survey of 351 frontline employees in food and beverage department of 12 five-star hotels in Seoul, this paper found a positive and significant effect of job rotation, customer database system, and knowledge sharing on the employees’ CRM competence. It discusses the relative influence of each practice on the competence development and presents practical implications for knowledge management in hotels.