Transforming Sustainability Into Customer Loyalty: Strategic Role of Customer Relationship Management (CRM) Capability in Indonesian Manufacturing Industri
Year: 2026
Type: article
Study design: Observational Study
Abstract: 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.
Institution: Binus University
Language: English
Domain: Social Sciences
Open Access status: diamond
Funder: Binus University
OpenAlex ID: W7225167235