How and When Does Engaging Customers in Environmental Sustainability Pay Off? The Role of Business Strategy

Mohammed Aldossary, Mansour Alyahya and Gomaa Agag ()
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Mohammed Aldossary: Management Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Mansour Alyahya: Management Department, College of Business Administration, King Faisal University, Al-Ahsa 31982, Saudi Arabia
Gomaa Agag: Nottingham Business School, Nottingham Trent University, Nottingham NG11 8NS, UK

Sustainability, 2024, vol. 16, issue 12, 1-15

Abstract: This study explores the influence of consumer engagement for sustainability purposes on customer satisfaction and firm performance. Our study utilized unique actual data on the study variables to test these relationships in the context of S&P 500 firms. We collected data from 405 firms from 2013 to 2022. The analysis revealed that customer engagement is positively related to firm performance and customer satisfaction. The OLS approach demonstrated that a one-unit increase in CE resulted in an 8.1% improvement in company value and a 4.7% improvement in customer satisfaction. It also revealed that the relationship between customer engagement and firm performance is stronger when the company integrates climate change into their strategies. These findings offer meaningful implications for theory and practice in the context of sustainability.

Keywords: customer engagement; environmental sustainability; firm performance; customer satisfaction; business strategy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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