Managing Trust and Satisfaction to Enhance Loyalty in Avoiding Dispute Construction Contract Conflicts

The primary objective of this study is to examine the impact of trust and customer satisfaction on enhancing customer loyalty of developer toward apartment contractors in Indonesia, where improving customer loyalty of developer is considered a key strategy to mitigate the occurrence of disputes. The research model is based on the stimulus-organism-response (SOR) theory. The study employs a quantitative approach, utilizing structured equation modeling (SEM), with data analyzed using SMARTPLS software. The population for this study consists of developer companies actively involved in the construction of high-rise apartment buildings in Indonesia. A total of 420 survey responses were collected for analysis, with data gathered between June 2024 and January 2025. The results of hypothesis testing indicate that trust and customer satisfaction (as the organism in the SOR framework) have a significant positive impact on enhancing customer loyalty of developer (as the response) toward apartment contractors. Furthermore, the findings reveal that supply chain agility and value cocreation (as stimuli) significantly and positively influence both trust and customer satisfaction (the organism). The novelty of this study lies in its contribution to the SOR theory by specifically investigating the role of trust and customer satisfaction in enhancing customer loyalty of developer toward apartment contractors. This research expands the application of the SOR framework in the context of the construction industry, offering new insights into the factors that influence loyalty in this sector.