The structures of organizations have gone through a dramatic change over the last years; as a result customer service is no longer a small side activity but a critical part in customer relationship management. Development in information technology has created opportunities as well as challenges for organizations when it comes to providing a customer service with capacity of sensing and responding to customers' needs. Previous research shows a relationship between customer response capability and customer knowledge processeses, this study investigates and confirms this relationship. However, findings show that dedication and understanding for customers needs has a direct impact on both customer response capability and customer knowledge processeses, this result indicates that customer knowledge processes and customer relationship management are difficult to differentiate. Furthermore, this study explores IT-related resources impact on customer response capability and customer knowledge processes.