Customer retention and organizational resilience as strategic capabilities for business performance: the mediating role of business continuity in independent pharmacies
DOI:
https://doi.org/10.18800/360gestion.202611.010Keywords:
Customer retention, Organizational resilience, Business continuity, Business performance, Independent pharmaciesAbstract
The study examines the mediating role of business continuity in the relationship among customer retention, organizational resilience, and business performance. The study adopts a quantitative approach and a non-experimental design with an explanatory scope, using covariance-based structural equation modeling (CB-SEM). A survey was administered to 382 owners of independent pharmacies in the city of Arequipa, Peru. The results suggest that customer retention directly strengthens organizational resilience and business continuity, while organizational resilience has positive effects on business continuity. Furthermore, business continuity acts as a direct predictor of business performance and mediates the effects of the other variables. The findings show that customer retention and organizational resilience enable businesses to sustain operations and improve business performance. Therefore, independent pharmacies should prioritize strengthening organizational capabilities to achieve sustainable performance in the retail pharmacy sector.
Downloads
References
Agag, G., Durrani, B. A., Shehawy, Y. M., Alharthi, M., Alamoudi, H., El-Halaby, S., Hassanein, A. & Abdelmoety, Z. H. (2023). Understanding the link between customer feedback metrics and firm performance. Journal of Retailing and Consumer Services, 73, 103301. https://doi.org/10.1016/j.jretconser.2023.103301
Ahmad, R. & Buttle, F. (2002). Customer retention management: a reflection of theory and practice. Marketing Intelligence & Planning, 20(3), 149-161. https://doi.org/10.1108/02634500210428003
Aigbogun, O., Xing, M., Fawehinmi, O., Ibeabuchi, C., Ehido, A., Ahmad, R. B. & Abdullahi, M. S. (2022). A supply chain resilience model for business continuity: the way forward for highly regulated industries. Uncertain Supply Chain Management, 10, 1-12. https://doi.org/10.5267/j.uscm.2021.11.001
Andrade, G. A. S., Espejo, M. M. S. B., García-Contreras, R. & Dos Santos, C. A. (2023). Social customer relationship management and organizational resilience of Brazilian microenterprises during the Covid-19 pandemic. Revista de Administração Mackenzie, 24(6). https://doi.org/10.1590/1678-6971/eRAMD230044.en
Ascarza, E., Neslin, S. A., Netzer, O., Anderson, Z., Fader, P. S., Gupta, S., Hardie, B. G. S., Lemmens, A., Libai, B., Neal, D., Provost, F. & Schrift, R. (2017). In pursuit of enhanced customer retention management: review, key issues, and future directions. Customer Needs and Solutions, 5, 65-81. https://doi.org/10.1007/s40547-017-0080-0
Asiaei, K., O’Connor, N. G., Barani, O. & Joshi, M. (2023). Green intellectual capital and ambidextrous green innovation: the impact on environmental performance. Business Strategy and the Environment, 32(1), 369-386. https://doi.org/10.1002/bse.3136
Barakat, M. & Sallam, M. (2025). Pharmacy workforce: a systematic review of key drivers of pharmacists’ satisfaction and retention. Journal of Pharmaceutical Policy and Practice, 18(1), 2470848. https://doi.org/10.1080/20523211.2025.2470848
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Barney, J. B. (2001). Resource-based theories of competitive advantage: a ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643-650. https://doi.org/10.1177/014920630102700602
Beuren, I. M., Dos Santos, V. & Theiss, V. (2022). Organizational resilience, job satisfaction and business performance. International Journal of Productivity and Performance Management, 71(6), 2262-2279. https://doi.org/10.1108/IJPPM-03-2021-0158
Cochran, W. G. (1977). Sampling techniques. John Wiley & Sons.
Corrales-Estrada, A. M., Gómez-Santos, L. L., Bernal-Torres, C. A. & Rodriguez-López, J. E. (2021). Sustainability and resilience organizational capabilities to enhance business continuity management: a literature review. Sustainability, 13(15), 8196. https://doi.org/10.3390/su13158196
De Matteis, J., Elia, G. & Del Vecchio, P. (2023). Business continuity management and organizational resilience: a small and medium enterprises (SMEs) perspective. Journal of Contingencies and Crisis Management, 31(4), 670-682. https://doi.org/10.1111/1468-5973.12470
Duchek, S. (2020). Organizational resilience: a capability-based conceptualization. Business Research, 13, 215-246. https://doi.org/10.1007/s40685-019-0085-7
Elshaer, I. A. & Saad, S. K. (2022). Entrepreneurial resilience and business continuity in the tourism and hospitality industry: the role of adaptive performance and institutional orientation. Tourism Review, 77(5), 1365-1384. https://doi.org/10.1108/TR-04-2021-0171
Failoc-Rojas, V. E., Hernández-Córdova, G., Valladares-Garrido, M. J. & Medina, C. (2025). Impact of educational short messages on the level of knowledge on prevention and early detection of tuberculosis from pharmacies in two districts of Peru. Pharmacia, 72, 1-6. https://doi.org/10.3897/pharmacia.72.e123884
Fajembimo, A. I. & Akpa, V. O. (2025). Firm resilience and profitability of selected fast-moving consumer goods companies in Lagos State, Nigeria. International Research Journal of Economics and Management Studies, 4(5), 30-40. https://doi.org/10.56472/25835238/irjems-v4i5p105
Fathima, M., Naik-Panvelkar, P., Saini, B. & Armour, C. L. (2013). The role of community pharmacists in screening and subsequent management of chronic respiratory diseases: a systematic review. Pharmacy Practice, 11(4), 228-245. https://doi.org/10.4321/S1886-36552013000400008
Fischbacher-Smith, D. (2017). When organisational effectiveness fails: business continuity management and the paradox of performance. Journal of Organizational Effectiveness, 4(1), 89-107. https://doi.org/10.1108/JOEPP-01-2017-0002
Fornell, C., Mithas, S., Morgeson, F. V. & Krishnan, M. S. (2006). Customer satisfaction and stock prices: high returns, low risk. Journal of Marketing, 70(1). https://doi.org/10.1509/jmkg.2006.70.1.3
Freeman, S. F., Hirschhorn, L. & Maltz, M. (2003). Moral purpose and organizational resilience: Sandler O'Neill & Partners, L. P. in the aftermath of September 11, 2001. Academy of Management Proceedings, 2003(1). https://doi.org/10.5465/ambpp.2003.13792457
Galaitsi, S. E., Pinigina, E., Keisler, J. M., Pescaroli, G., Keenan, J. M. & Linkov, I. (2023). Business continuity management, operational resilience, and organizational resilience: commonalities, distinctions, and synthesis. International Journal of Disaster Risk Science, 14, 713-721. https://doi.org/10.1007/s13753-023-00494-x
Gao, L. X., De Haan, E., Melero-Polo, I. & Sese, F. J. (2023). Winning your customers’ minds and hearts: disentangling the effects of lock-in and affective customer experience on retention. Journal of the Academy of Marketing Science, 51, 334-371. https://doi.org/10.1007/s11747-022-00898-z
Garrido-Moreno, A., Martín-Rojas, R. & García-Morales, V. J. (2024). The key role of innovation and organizational resilience in improving business performance: a mixed-methods approach. International Journal of Information Management, 77, 102777. https://doi.org/10.1016/j.ijinfomgt.2024.102777
Gül, İ., Helvacıoğlu, E. T. & Saraçlı, S. (2023). Service quality, outpatient satisfaction and loyalty in community pharmacies in Turkey: a structural equation modeling approach. Exploratory Research in Clinical and Social Pharmacy, 12, 100361. https://doi.org/10.1016/j.rcsop.2023.100361
Hair, J. F., Howard, M. C. & Nitzl, C. (2020). Assessing measurement model quality in PLS-SEM using confirmatory composite analysis. Journal of Business Research, 109, 101-110. https://doi.org/10.1016/j.jbusres.2019.11.069
Hair, J. F., Babin, B. J. & Krey, N. (2017). Covariance-based structural equation modeling in the Journal of Advertising: review and recommendations. Journal of Advertising, 46(1), 163-177. https://doi.org/10.1080/00913367.2017.1281777
Hossain, M. I., Jamadar, Y., Islam, M. F., Rashed, M. & Akter, T. (2025). Environmental sustainability practices in SMEs: insights from integrated PLS-SEM and fsQCA approaches. Journal of Cleaner Production, 503, 145185. https://doi.org/10.1016/j.jclepro.2025.145185
Iftikhar, A., Purvis, L. & Giannoccaro, I. (2021). A meta-analytical review of antecedents and outcomes of firm resilience. Journal of Business Research, 135, 408-425. https://doi.org/10.1016/j.jbusres.2021.06.048
Klemelä, J. (2018). Nonparametric finance. John Wiley & Sons. https://doi.org/10.1002/9781119409137
Kock, N. & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: an illustration and recommendations. Journal of the Association for Information Systems, 13(7). https://doi.org/10.17705/1jais.00302
Koporcic, N., Kukkamalla, P. K., Markovic, S. & Maran, T. (2026). Resilience of small and medium-sized enterprises in times of crisis: an umbrella review. Review of Managerial Science, 20, 301-329. https://doi.org/10.1007/s11846-025-00883-0
Le, T. T., Huan, N. Q., Thuy Hong, T. T. & Tran, D. K. (2021). The contribution of corporate social responsibility on SMEs performance in emerging country. Journal of Cleaner Production, 322, 129103. https://doi.org/10.1016/j.jclepro.2021.129103
Lengnick-Hall, C. A., Beck, T. E. & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21(3), 243-255. https://doi.org/10.1016/j.hrmr.2010.07.001
Li, B., Mousa, S., Reyes, J. R., Alzoubi, H. M., Ali, A. & Hoang, A. D. (2023). The role of technology innovation, customer retention and business continuity on firm performance after post-pandemic era in China’s SMEs. Economic Analysis and Policy, 78, 1209-1220. https://doi.org/10.1016/j.eap.2023.05.004
Mfokeu, A. M. & Chrysostome, E. (2022). Performance characteristics of very small enterprises: funhouse mirror or obviousness? Transnational Corporations Review, 14(1), 94-111. https://doi.org/10.1080/19186444.2020.1852820
Mikalef, P. & Pateli, A. (2017). Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: findings from PLS-SEM and fsQCA. Journal of Business Research, 70, 1-16. https://doi.org/10.1016/j.jbusres.2016.09.004
Miller, D. (2019). The resource-based view of the firm. En D. D. Bergh (Ed.), Oxford Research Encyclopedia of Business and Management. Oxford Academic. https://doi.org/10.1093/acrefore/9780190224851.013.4
Ministerio de Salud & Dirección General de Medicamentos, Insumos y Drogas. (2025). Boletín de establecimientos farmacéuticos, junio 2025. https://repositorio-digemid.minsa.gob.pe/handle/20.500.14882/1012
Niemimaa, M., Järveläinen, J., Heikkilä, M. & Heikkilä, J. (2019). Business continuity of business models: evaluating the resilience of business models for contingencies. International Journal of Information Management, 49, 208-216. https://doi.org/10.1016/j.ijinfomgt.2019.04.010
Pérez-Campdesuñer, R., Sánchez-Rodríguez, A., García-Vidal, G., Martínez-Vivar, R., Ruiz-de la Peña, J. & De Miguel-Guzmán, M. (2023). The premature mortality of micro and small enterprises. Zagreb International Review of Economics and Business, 26(2). https://doi.org/10.2478/zireb-2023-0014
Pilav-Velic, A., Jahic, H. & Krndzija, L. (2024). Firm resilience as a moderating force for SMEs’ innovation performance: evidence from an emerging economy perspective. Regional Science Policy & Practice, 16(8), 100033. https://doi.org/10.1016/j.rspp.2024.100033
Roemer, E., Schuberth, F. & Henseler, J. (2021). HTMT2: an improved criterion for assessing discriminant validity in structural equation modeling. Industrial Management & Data Systems, 121(12), 2637-2650. https://doi.org/10.1108/IMDS-02-2021-0082
Sahebjamnia, N., Torabi, S. A. & Mansouri, S. A. (2015). Integrated business continuity and disaster recovery planning: towards organizational resilience. European Journal of Operational Research, 242(1), 261-273. https://doi.org/10.1016/j.ejor.2014.09.055
Sardana, D., Gupta, N., Kumar, V. & Terziovski, M. (2020). CSR ‘sustainability’ practices and firm performance in an emerging economy. Journal of Cleaner Production, 258, 120766. https://doi.org/10.1016/j.jclepro.2020.120766
Steen, R., Haug, O. J. & Patriarca, R. (2024). Business continuity and resilience management: a conceptual framework. Journal of Contingencies and Crisis Management, 32(1), e12501. https://doi.org/10.1111/1468-5973.12501
Su, H. C. & Linderman, K. (2016). An empirical investigation in sustaining high-quality performance. Decision Sciences, 47(5), 787-819. https://doi.org/10.1111/deci.12210
Sulistyaningrum, I. H., Pribadi, P., Santoso, A., Arfianto, E., Pangestuti, R. C. A., Umma, N. & Ningrum, M. P. (2023). The complex mechanism of developing trust in pharmacy. Pharmacia, 70(3), 765-770. https://doi.org/10.3897/pharmacia.70.e109396
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319-1350. https://doi.org/10.1002/smj.640
Teece, D. J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207
Yulianto, E., Ali, Q. S. A., Hanafiah, M. H., Wiyata, W. & Salamah, S. N. (2025). Strengthening resilience and performance through business continuity management: insights from Central Java tour operators. Quality & Quantity. https://doi.org/10.1007/s11135-025-02285-6
Zainurossalamia Za, S., Tricahyadinata, I. & Robiansyah, R. (2024). Does creativity and product innovation build business continuity? Investigation of Samarinda weaving craft. Economics - Innovative and Economics Research Journal, 12(2). https://doi.org/10.2478/eoik-2024-0024
Zhang, M. F., Dawson, J. F. & Kline, R. B. (2021). Evaluating the use of covariance-based structural equation modelling with reflective measurement in organizational and management research: a review and recommendations for best practice. British Journal of Management, 32(2), 257-272. https://doi.org/10.1111/1467-8551.12415
