Digital Sustainability Signaling in ICT Services: Effects on Data-Driven Customer Experience and Brand Loyalty
PDF
PDF

How to Cite

Ahmed, Wafa Hamid Abdelrahman Mohamed. 2026. “Digital Sustainability Signaling in ICT Services: Effects on Data-Driven Customer Experience and Brand Loyalty”. Journal of Information Technology and Digital World 8 (2): 59-81. https://doi.org/10.36548/jitdw.2026.2.001.

Keywords

Digital Sustainability
ICT Service Platforms
Customer Experience
Cloud Computing
Signaling Theory
Brand Loyalty
Data-Driven CX

Abstract

Sustainability has emerged as a key driver of strategy in the information and communication technology (ICT) industry, particularly within digital infrastructures such as cloud computing platforms, data centers, and ICT service ecosystems. Yet its effects on customer experience (CX) in digitally mediated environments and brand loyalty are inconclusive in previous research. This study aims to clarify this inconclusiveness by investigating how sustainability initiatives communicated through digital channels and platform-based interactions shape CX and brand loyalty in information-asymmetric contexts. By applying Signaling Theory and Expectation Confirmation Theory, this study proposes a conceptual model in which sustainability initiatives influence CX both directly and indirectly through signal credibility, whereas sustainability expectations act as a moderating factor. Using survey results obtained from 412 ICT customers and employing structural equation modeling (SEM) analysis, it can be concluded that sustainability initiatives affect customer experience directly as well as indirectly. However, the effect of sustainability via perceived credibility is much more significant, proving that sustainability serves as a conditional dominator in the formation of customer experience. This shows that customers respond only to how they interpret sustainability initiatives and not to their availability. Moreover, customer sustainability expectations moderate this relationship such that only when customers experience better-than-expected sustainability initiatives do they exhibit a positive relationship. Customer experience quality is also a robust predictor of brand loyalty. Finally, relational sales interactions for sustainability signals have a greater impact on credibility and loyalty than impersonal communication modes. This paper contributes to the literature by arguing that sustainability is a conditional driver of customer experience and brand loyalty. In addition, this paper incorporates signaling theory and expectation confirmation theory to explain the inconsistent results that have been obtained in previous studies. Managerially, this paper shows that ICT organizations need to incorporate sustainability into their CX and sales strategies. In addition, the findings are particularly relevant for ICT firms operating in data-intensive and cloud-based environments. However, they need to do so credibly and transparently and without overpromising so that customers do not think they are engaging in greenwashing.

References

  1. Becker-Olsen, Karen L., B. Andrew Cudmore, and Ronald P. Hill. “The Impact of Perceived Corporate Social Responsibility on Consumer Behavior.” Journal of Business Research 59, no. 1 (2006): 46–53.
  2. Bhattacharya, C. B., and Sankar Sen. “Doing Better at Doing Good: When, Why, and How Consumers Respond to Corporate Social Initiatives.” California Management Review 47, no. 1 (2004): 9–24.
  3. Bhattacherjee, Anol. “Understanding Information Systems Continuance: An Expectation-Confirmation Model.” MIS Quarterly 25, no. 3 (2001): 351–370.
  4. Chen, Yu-Shan, and Ching-Hsun Chang. “Greenwash and Green Trust: The Mediation Effects of Green Consumer Confusion and Green Perceived Risk.” Journal of Business Ethics 114, no. 3 (2013): 489–500.
  5. Connelly, Brian L., S. Trevis Certo, R. Duane Ireland, and Christopher R. Reutzel. “Signaling Theory: A Review and Assessment.” Journal of Management 37, no. 1 (2011): 39–67.
  6. Delmas, Magali A., and Vanessa Cuerel Burbano. “The Drivers of Greenwashing.” California Management Review 54, no. 1 (2011): 64–87.
  7. Du, Shuili, C. B. Bhattacharya, and Sankar Sen. “Maximizing Business Returns to Corporate Social Responsibility (CSR): The Role of CSR Communication.” International Journal of Management Reviews 12, no. 1 (2010): 8–19.
  8. Eccles, Robert G., Ioannis Ioannou, and George Serafeim. “The Impact of Corporate Sustainability on Organizational Processes and Performance.” Management Science 60, no. 11 (2014): 2835–2857.
  9. Fatma, Mobin, Imran Rahman, and Zillur Rahman. “Consumer Perspective on CSR Literature Review and Future Research Agenda.” Management Research Review 38, no. 2 (2015): 195–216.
  10. Flammer, Caroline. “Corporate Green Bonds.” Journal of Financial Economics 142, no. 2 (2021): 499–516.
  11. Homburg, Christian, Martin Klarmann, and Sabrina Staritz. “Customer Experience Management and Firm Performance.” Journal of Marketing 76, no. 1 (2012): 44–66.
  12. Kirmani, Amna, and Akshay R. Rao. “No Pain, No Gain: A Critical Review of the Literature on Signaling Unobservable Product Quality.” Journal of Marketing 64, no. 2 (2000): 66–79.
  13. Kumar, V., and Denish Shah. “Building and Sustaining Profitable Customer Loyalty for the 21st Century.” Journal of Retailing 80, no. 4 (2004): 317–330.
  14. Lemon, Katherine N., and Peter C. Verhoef. “Understanding Customer Experience Throughout the Customer Journey.” Journal of Marketing 80, no. 6 (2016): 69–96.
  15. Luo, Xueming, and C. B. Bhattacharya. “Corporate Social Responsibility, Customer Satisfaction, and Market Value.” Journal of Marketing 70, no. 4 (2006): 1–18.
  16. Oliver, Richard L. “A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions.” Journal of Marketing Research 17, no. 4 (1980): 460–469.
  17. Spence, Michael. “Job Market Signaling.” Quarterly Journal of Economics 87, no. 3 (1973): 355–374.
  18. Spreng, Richard A., Scott B. MacKenzie, and Richard W. Olshavsky. “A Reexamination of the Determinants of Consumer Satisfaction.” Journal of Marketing 60, no. 3 (1996): 15–32.
  19. Testa, Francesco, Gabriele Pretner, Roberta Iovino, Giada Bianchi, Serena Tessitore, and Fabio Iraldo. “Drivers to Green Consumption: A Systematic Review.” Journal of Cleaner Production 184 (2018): 657–668.