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

Abstract

Background: Increasing environmental pressures and evolving customer needs compel companies to integrate sustainability and strategic relationship management. While Sustainable Supply Chain Practices (SSCPs) and Customer Relationship Management (CRM) individually enhance firm performance, their combined impact remains underexplored, particularly in developing countries.
Objective: This study examines the effects of SSCPs and CRM on firm performance and explores CRM’s mediating role between SSCPs and performance, based on data from Saudi firms.
Methodology: A cross-sectional quantitative study surveyed 310 managerial respondents from 350 manufacturing, retail, and service firms using validated scales measuring SSCPs (sustainable sourcing, green logistics, waste management), CRM (customer satisfaction, loyalty programs, relationship building), and firm performance (operational efficiency, financial outcomes, customer loyalty). Data were analyzed using SEM via AMOS 22 and Smart PLS.
Results: SSCPs positively impacted firm performance (β=0.42, p<.001), as did CRM (β=0.37, p<.001). CRM also mediated the SSCP–performance relationship. Model fit indices confirmed the framework’s validity.
Implications: Integrating SSCPs with CRM strategies enhances firm performance, offering strategic advantages in sustainability and customer retention.