Digital transformation and customer relationships: goodwill and perceived gain

Purpose Although previous studies have extensively discussed the various spillover benefits of digital transformation (DT), the customer value underlying DT has not received widespread attention. Therefore, this study aims to explore the potential relationship between DT and customer relationship quality (RQ) from two dimensions, corporate value (e.g. goodwill improvement (GI)) and consumer benefits (e.g. perceived of gain), thereby addressing gaps in the existing research on DT and customer relationship management (CRM). Design/methodology/approach By integrating social exchange theory (SET) and expectation confirmation theory, this study proposes research hypotheses. A total of 510 valid data points were collected through Questionnaire Star (https://www.wjx.cn) and the Commission Market Association. The structural equation modelling (SEM) approach of partial least squares (smart-PLS) was used to validate the research model. Findings The results of SEM analysis based on partial least squares indicate that DT not only directly promotes the improvement of customer RQ but also indirectly influences it through the GI and perceived of gain. Moreover, GI and perceived of gain significantly improve the quality of customer relationships. Notably, relationship embeddedness significantly moderates the impact of DT and perceived of gain. Originality/value As one of the earliest empirical studies exploring DT and customer relationships, this research incorporates the economic concept of GI into the field of customer management, achieving cross-disciplinary integration and innovation in theory. Moreover, this research breaks new ground by analysis the mechanism through which DT improves customer RQ from two perspectives: corporate interests (such as GI) and consumer interests (perceived of gain). Finally, from a practical standpoint, this research offers fresh insights for CRM practices in the context of DT.