5 Conclusion

This work aimed to identify the underlying environmental and organizational

factors that enable CRM alliances to flourish in certain countries. The contributions of
this paper are two-fold. First, a model was created to analyze the factors that drive the
adoption of CRM alliances in a country. This is an important contribution to the
CRM field, as no previous studies examined the key macro-level factors needed for
CRM to be successful in new markets. Second, this model was tested for relevancy in
explaining activities in Taiwan. During the application of the model, factors that play
a larger role in Taiwan than in Western countries already undertaking CRM alliances
were discovered and the model was modified to take these into account. In this way,
the model proves a useful framework to examine the macro-level factors, while being
flexible enough to take other factors into consideration.
Using the model, we can explain why CRM alliances do not yet play a major role
in the Taiwan market. The relatively weak role played by consumers, facilitators
(consultants and advocacy groups), and the relatively passive role of the Taiwan
government are the main reasons. In addition, external factors are only playing a
moderate role in motivating businesses to undertake CRM at the moment, but this is
expected to change as competition for customers and labor increases on the island.
Finally, NPOs continue to be hampered by a perceived lack of credibility amongst
consumers, and only if the overall image of the sector is strengthened will a large
number of NPOs be in a position to take advantage of opportunities to partner with
businesses.
Despite the useful results, the current research was limited in several ways, and
these limitations will be discussed below. Directions for future research, as well as
75
recommendations for businesses, nonprofit organizations and the government in
Taiwan are provided in the final sections.
5.1 Limitations of the research
Out of necessity, the model in this research is based on cause-related marketing
literature from a narrow range of countries, including the United States, Canada, the
United Kingdom, and Australia. While there are subtle cultural, political and
economic differences amongst these countries, in a broad sense they are fairly
homogeneous. As a result, the model will not be as robust as a model based on more
diverse experiences. However, at this time there is very little literature available on
CRM alliances outside of these four key markets. As additional studies are
undertaken, the model should be revised to reflect how CRM alliances function in
more diverse environments. In addition, very little of the existing literature on these
markets directly examines the macro-level factors that contribute to the success of
CRM alliances. The key factors had to be extrapolated from studies that primarily
address consumer perceptions and responses towards CRM alliances.
Gathering data to evaluate Taiwans CRM environment is very challenging.
There are no studies published in English on the subject of CRM in Taiwan, and
studies on related topics are scarce. There is little information available on corporate
philanthropy, donor behavior, or levels of charitable giving in Taiwan. In fact, any
figures regarding the level of corporate and individual donations should be considered
estimates, as there is no reliable reporting method at the moment. The government
does not publicly release charitable donation figures collected from annual tax filings
and most NPOs do not release their financial statements. In general, Taiwans
corporate and NPO sectors are not as transparent as in many Western countries,
meaning less information was publicly available than expected. Adding to the
76
problem of gathering information was the difficulty of securing face-to-face
interviews.
This lack of data on the key factors in Taiwan meant that proxy data had to be
heavily relied upon to measure factors such as consumers level of social activism.
Indirect measurements of key factors leads to an imperfect understanding of the
environment in Taiwan, and therefore affects our analysis of the likelihood that CRM
alliances will be sustainable over the long-term. Without adequate information it is
impossible to know the true strength of the different players.
Another area that is surprisingly under-explored in the literature is the role of
philanthropy in Chinese culture. Without a clear understanding of consumers basic
views towards philanthropy, it is very difficult to estimate their reactions to CRM
alliances. For lack of a better choice, we are forced to rely on Western-focused
literature regarding consumer behavior at present. Without further study, we have no
way of knowing if Chinese consumers attitudes toward organizations that engage in
CRM are as positive as Western consumers attitudes. We also lack data on the types
of causes that are most attractive, and the preferred structure of CRM campaigns in
Chinese culture. The literature assumes that differences between Eastern and Western
philanthropy exist, but studies have not been undertaken to help determine the extent
of these differences or how they may influence perceptions towards CRM alliances.
5.2 Future research directions
The model introduced in this paper is the first of its kind, and therefore leaves
room for future study and improvement. A qualitative approach could be taken to test
if the chosen factors have a causal relationship with the success of CRM alliances in
the West.
The model should also be applied to other emerging CRM markets around the
77
world. It is hypothesized that the model will need slight modifications to fit
individual markets. For example, in Taiwan it was found that the relevant external
pressures differed from those found in the West.
In general, a few predictions can be made about the types of modifications that
may be needed in order for the model to fit other Asian nations. In general, the
government may be a stronger factor than in the West, especially in countries such as
China. For example, a strong government role might make CRM more attractive for
multinational companies entering newly-opened markets, even in areas where
consumers do not have high levels of income and social awareness, if an alliance can
build good relationships with the local government. Another possible difference in
Asia is the role entire supply chains could play in CRM alliances. Companies already
engaged in CRM alliances may begin to exert pressure on their downstream and
upstream supply chain partners to also support causes through CRM (Adkins 1999,
283-5). This could be especially relevant in J apan with its tightly woven system of
suppliers and Chinese cultures with a large number of family-owned company
networks.
5.3 Recommendations and implications for the future
If CRM alliances are going to succeed in the long-term in Taiwan, advances in
several areas need to be made. First, business leaders need to realize the business
case for undertaking CRM, not merely the philanthropic case. If the goals of CRM
alliances are strictly altruistic, then corporate giving or other types of alliances would
be a better avenue to achieve the leaders goals and save time and resources for both
partners. As more businesses in Taiwan begin to embrace a view of corporate social
responsibility that goes beyond basic corporate philanthropy, cause-related marketing
alliances should be viewed as a powerful tool to engage stakeholders and build deeper
78
relationships.
The biggest challenge for NPOs seeking alliances in Taiwan at the moment is
credibility. While consumer views towards NPOs are on an upward trend, the sector
would benefit by continuing to rally for greater transparency and accountability. The
formation of the Taiwan NPO Self-Regulation Alliance is an important first step, but
the challenge now is to make real progress in order to win consumers trust. If NPOs
do not enjoy high levels of consumer respect and loyalty, they can not offer brand
equity to the corporations with which they seek to partner.
The government in Taiwan has a fractured approach to oversight of both the
business and NPO sector. The government has introduced the concept of CSR, but
has yet to make real efforts to encourage companies to undertake CSR. Likewise, on
the NPO side, organizations report to a myriad of different agencies, based on their
legal structure and stated missions. As a result, the government lacks consistency in
monitoring and reporting on NPO activities. Efforts to reform tax incentives for
charitable donations as well as to update fundraising laws have been slow. The
government should play a more active role in bringing about accountability and
transparency standards for the NPO sector.
Facilitators such as consultants or CRM advocacy groups could impact the
spread of CRM alliances in Taiwan. At the moment, there is a serious lack of
knowledge and few channels for sharing experiences among practitioners. If leaders
who have experience in CRM alliances were to form a working group to share best
practices, the learning curve could be shortened for other businesses and NPOs and
alliances could grow in depth.
Finally, Taiwans consumers currently play a relatively weak role in bringing
CRM alliances to the island. For alliances to bring long-term benefits to businesses
79
and NPOs, consumers will have to take a more active role in the CRM environment.
Businesses, NPOs, the government, and advocacy groups can all play a role in
educating consumers about charitable giving in general and socially responsible
purchasing in particular. However, if CRM alliances do not capture the hearts of
Taiwans consumers we can expect the current movement to fade.
80