Analysis of the Influence of Customer Experience and Competitive Risk on Purchase Intentions Through the Mediation of Environmental Sustainability and Social Sustainability (A Case Study of the Wastra Nusantara Nes by HDK MSME)

Abstract

Indonesian traditional textile micro, small, and medium enterprises (MSMEs) operate in an increasingly competitive market shaped by changing consumer preferences and growing expectations for environmentally and socially responsible business practices. This research examines the influence of customer experience and competitive risk on purchase intention through the mediating roles of environmental sustainability and social sustainability in NES by HDK, an Indonesian wastra nusantara MSME. A quantitative explanatory research design with a cross-sectional approach was employed. Primary data were collected using a structured five-point Likert-scale questionnaire distributed to 102 consumers selected through purposive sampling. The respondents had purchased NES by HDK products at least once, were at least 17 years old, and had interacted with the enterprise either directly or through digital platforms. The research model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results showed that customer experience significantly influenced social sustainability, environmental sustainability, and purchase intention. Competitive risk significantly influenced both sustainability dimensions. Environmental sustainability significantly influenced purchase intention, whereas social sustainability did not have a significant effect. The mediation analysis further showed that environmental sustainability significantly mediated the relationship between customer experience and purchase intention, while the other tested indirect relationships were not significant. These findings indicate that environmental sustainability serves as a more behaviorally influential sustainability mechanism in this context. For culturally based MSMEs, strengthening product and service experiences while making environmental practices more visible may provide a more effective pathway to increasing purchase intention than relying solely on social value communication.