THE ROLE OF SUSTAINABLE SUPPLY CHAIN PRACTICES AND  CUSTOMER RELATIONSHIP MANAGEMENT IN ENHANCING FIRM  PERFORMANCE: A STRATEGIC BUSINESS MANAGEMENT  PERSPECTIVE

Wajiha Imran; Mehar Un Nisa; Sham

Authors

Wajiha Imran
Mehar Un Nisa
Sham

Keywords:

Sustainable supply chain practices, customer relationship management, firm performance, strategic management, Saudi Arabia, structural equation modeling

Abstract

Background: With an increasing environmental pressure and changing customer needs, companies are forced to incorporate sustainability and strategic relationship management into their business. Although both Sustainable Supply Chain Practices (SSCPs) and Customer Relationship Management (CRM) have each shown a positive link with firm performance, little is known about the combined effect of SSCP and CRM on firm performance in terms of strategic business management perspective especially in developing countries.
Objective: The purpose of this study is to examine how SSCPs and CRM affect firm performance, and to explore the mediating effect of CRM on the relationship between SSCPs and performance based on a sample of Saudi firms.
Methodology: A cross sectional study with quantitative approach was carried out in 350 firm of manufacturing, retail, and service in this study. A structured questionnaire on validated scales was used to gather 310 valid responses from managerial respondents. The constructs examined were SSCPs (i.e. sustainable sourcing, green logistics, waste management), CRM (i.e. customer satisfaction, loyalty programs, relationship building), and firm performance (i.e. operational efficiency, financial, customer loyalty). Data were analyzed with AMOS 22 and
Smart PLS for the Structural Equation Model (SEM).
Results: The results indicated that SSCPs have a positive and significant direct effect on the firm performance (β= 0.42, p <. 001), and CRM also had a direct and positive effect (β = 0.37, p <. 001). Moreover, CRM was also shown to have a mediation effect between SSCPs and firm performance. The model had a good fit statistics indicating that the framework was valid.
Implications: The findings suggest that integrating SSCP into CRM is conducive to firm performance and provides strategic advantages in sustainability and customer retention.