Transforming Sustainability Into Customer Loyalty: Strategic Role of Customer Relationship Management (CRM) Capability in Indonesian Manufacturing Industri
Background: Sustainability-based practices are increasingly relevant to business-to-business manufacturing, but their contribution to customer loyalty remains uncertain. Objective: This study examines Sustainability-Based Practices, Customer Satisfaction, Customer Loyalty, and Customer Relationship Management (CRM) Capability in Indonesian manufacturing relationships. Methods: A quantitative cross-sectional survey of procurement decision-makers was analyzed using partial least squares structural equation modeling (PLS-SEM). Results: Sustainability-Based Practices positively influence Customer Satisfaction (β = 0.378; p < 0.001), and Customer Satisfaction positively influences Customer Loyalty (β = 0.312; p = 0.030). The direct relationship between Sustainability-Based Practices and Customer Loyalty is not significant (β = 0.096; p = 0.458). CRM Capability does not significantly moderate either proposed relationship (p = 0.675 and p = 0.286). The reported indirect effect concerns CRM Capability through Customer Satisfaction (β = 0.109; p = 0.050), which is borderline under the stipulated p < 0.05 criterion and does not establish mediation of sustainability effects. Conclusion: Customer satisfaction is associated with the relational value of sustainability practices, but sustainability does not directly predict loyalty in the reported model. Manufacturing suppliers should connect sustainability initiatives with customer-relevant performance. Interpretation requires caution because of measurement-validity concerns and unavailable verification of the original indirect-effect output.
Authors
- Askar Baura
- Shahnaz Alina Putri Nasution
- Agus Tandi
Publication Details
- Journal
- Journal of Business Social and Technology
- Published
- 2026-11-04
- DOI
- https://doi.org/10.59261/bustechno.v7i5.855
- Primary Topic
- Customer Service Quality and Loyalty
- Type
- article
- Field-Weighted Citation Impact
- 0.00