Impact of Modern Supply Chain Factors on Customer Satisfaction and Building Brand Loyalty

Abstract

Purpose: This paper aims to examine the role of digital supply chain factors such as digitalization, ethical practices, human-centricity, and sustainability, and their impact on customer satisfaction, and subsequently the impact on brand loyalty in the context of digital supply chain operational strategy.

Design/methodology/approach: By utilizing a quantitative approach, the research applied a structured questionnaire with a five-point Likert scale, which was completed by 391 respondents. In this study, the relationship between digitalization, ethical practices, human-centricity, and sustainability with brand loyalty through SEM, using SmartPLS 3.0, was examined, using customer satisfaction as a mediating variable.

Findings: The results indicate that digitalization, ethical practices, and sustainability positively influence customer satisfaction. Human-centricity, surprisingly, was not significantly associated with adoption, given the relatively young and technology-savvy sample of respondents who might place a greater priority on digital efficiency.

Research limitations/implications: This study focuses on young, infrequent online shoppers, which limits its generalizability. Future research may adopt a different demographic background and industry context and investigate new technologies such as AI and blockchain.

Practical implications: This develops a different perspective in companies concerning digital tools, ethical transparency, and sustainability strategies to increase both satisfaction and loyalty, contemplating customer preferences.

Originality/value: In competitive markets, a modern integrated model linking why and how supply chain dimensions connect with customer satisfaction and loyalty is particularly important.