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

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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
    Marketing Department, Faculty of Commerce, University of Sadat City, Sadat City 32897, Egypt)

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.

Suggested Citation

  • Mohammed Aldossary & Mansour Alyahya & Gomaa Agag, 2024. "How and When Does Engaging Customers in Environmental Sustainability Pay Off? The Role of Business Strategy," Sustainability, MDPI, vol. 16(12), pages 1-15, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:12:p:4924-:d:1411242
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    References listed on IDEAS

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    Cited by:

    1. Mansour Alyahya & Gomaa Agag, 2025. "How Does Corporate Environmental Performance Contribute to Firm Performance and Customer Satisfaction? A Longitudinal Investigation," Sustainability, MDPI, vol. 17(4), pages 1-22, February.
    2. Ahmed Alyahya & Gomaa Agag, 2025. "Improving Corporate Environmental Performance Through Big Data Analytics Implementation: The Role of Industry Environment," Sustainability, MDPI, vol. 17(7), pages 1-22, March.

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