The Role of Customer Satisfaction In Mediating The Effect of Service Performance and Perceived Value On Customer Loyalty: Evidence From A B2B Outsourced Cleaning Service In A Pharmaceutical Manufacturing Setting

Outsourced facility services have become a strategic component of operations in Indonesia's highly regulated pharmaceutical industry, where cleanliness is not a cosmetic concern but a compliance requirement embedded in CPOB, WHO Prequalification, ISO 9001:2015, and ISO 14001:2015 standards. This study examined why an outsourced cleaning-service provider operating exclusively for a single pharmaceutical client since 2013 recorded 38 client complaints between November 2025 and January 2026, of which 66% concerned Service Performance and Perceived Value, and asked whether Customer Satisfaction mediates the effects of these two constructs on Customer Loyalty. Prior research has largely tested this chain in consumer-facing settings, leaving the business-to-business, compliance-driven pharmaceutical outsourcing context empirically unexamined. A quantitative, explanatory cross-sectional survey collected primary data from 355 employees of PT Bio Farma (Persero) Pasteur, Bandung, drawn by simple random sampling from a population of 3,096 and analyzed using PLS-SEM in SmartPLS. All eight hypotheses were supported at the 5% significance level. The model explained 74.0% of the variance in Customer Satisfaction and 68.3% of the variance in Customer Loyalty. Service Performance showed the strongest association with Customer Satisfaction (β = 0.543; f² = 0.901), while Customer Satisfaction showed the strongest association with Customer Loyalty (β = 0.494) and partially mediated both upstream paths (indirect effects β = 0.269 and β = 0.229). The study empirically extends the satisfaction-mediation framework to regulated B2B outsourcing and indicates that satisfaction management should be the central lever in loyalty-building strategy.