Transforming Sustainability Into Customer Loyalty: Strategic Role of Customer Relationship Management (CRM) Capability in Indonesian Manufacturing Industri
DOI:
https://doi.org/10.59261/bustechno.v7i5.855Keywords:
B2B Manufacturing, Customer Loyalty, Customer Relationship Management, Customer Satisfaction, Sustainability-Based PracticesAbstract
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.
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