Alumni loyalty dimensions for sustaining a business school in Indonesia

Alumni, as key stakeholders in higher education, play a crucial role in ensuring the success and sustainability of a business school. However, the specific role of loyal alumni has been underexplored in recent discussions, particularly in the context of business schools. This research aims to fill this gap by examining the dimensions of alumni loyalty that contribute to the sustainability of a business school in Indonesia. The study focuses on three key dimensions of alumni loyalty: positive word of mouth, cross-buying, and alumni engagement. Using a case study of a prominent Indonesian business school, data was collected from 177 alumni through random sampling. Structural Equation Modeling with Partial Least Squares (SEM-PLS) was employed to analyze the correlations between the dimensions of alumni loyalty. The findings reveal that, among the three dimensions, cross-buying is the strongest indicator of alumni loyalty. This suggests that alumni are more likely to maintain a relationship with the institution through ongoing participation in its programs, services, and offerings. The managerial implications highlight the importance of marketing strategies that strengthen alumni relationships, involve alumni in curriculum development or promotional activities, and implement cross-generational marketing. Business schools can enhance these dimensions to foster growth and bolster their reputation.