Abstract
This study explores the key drivers of loyalty in business-to-business (B2B) relationships between fast-moving consumer goods (FMCG) retailers, specifically micro, small, and medium enterprises (MSMEs), and their suppliers in Indonesia amidst digital transformation. It addresses the primary question: What factors shape the loyalty of traditional retail stalls to suppliers in a digitalized market? The research fills a gap in understanding B2B loyalty within the FMCG retail sector, where digital platforms have revolutionized buyer-seller interactions by enabling seamless product ordering, payments, and efficient supply chains. The study proposes a novel conceptual framework grounded in buyer-seller relationship and relationship marketing theories, analyzing data from 500 FMCG retail stall owners or managers across Indonesia using structural equation modeling (SEM). Findings reveal that merchandising, website quality, commitment, and satisfaction significantly enhance loyalty, while service quality and trust show no direct impact. Satisfaction emerges as the most critical mediator, amplifying the effects of merchandising and website quality on loyalty, with commitment and trust playing secondary mediating roles.mThe article is structured to review loyalty and digital transformation literature, outline the methodology, present SEM results, and discuss implications. Key findings highlight the pivotal role of user-friendly digital platforms and effective merchandising strategies in fostering loyalty, offering actionable insights for suppliers, policymakers, and practitioners to strengthen B2B relationships in Indonesia’s evolving FMCG retail landscape.