Exploring digital leadership - TOE framework in CRM adoption by SMEs in developing countries

Purpose This study aims to investigate how small and medium enterprises (SMEs) in developing countries can leverage customer relationship management (CRM) for business growth. It extends the Technology–Organization–Environment (TOE) framework by incorporating digital leadership and examining its role in moderating the effects of technological and organizational contexts on CRM adoption. Design/methodology/approach The research uses a quantitative, descriptive and cross-sectional approach, collecting data from 223 SMEs in Indonesia supported by Jadah Tempe Kaliurang Small and Medium Industries, which have already adopted CRM. Data analysis was conducted using SEM-PLS with SmartPLS. Findings The study finds that environmental factors and digital leadership are crucial for CRM adoption in SMEs, while technological and organizational factors have minimal impact. Notably, digital leadership negatively moderates the effect of organizational context on CRM adoption. Research limitations/implications The study emphasizes the need to integrate digital leadership into the TOE framework for a more comprehensive understanding of CRM adoption. Practical implications The results help SMEs identify key factors affecting CRM adoption and develop strategies for successful implementation, highlighting the importance of digital leadership. Social implications The study underscores that SME leaders in developing countries must enhance their digital skills to adopt CRM effectively. Originality/value This research contributes to the TOE framework by showing digital leadership’s critical, albeit unexpectedly negative, role in CRM adoption among SMEs.