Annals of Human Resource Management Research
Vol. 6 No. 2 (2026): June

Effect of On-Time Delivery, Tracking, and Cargo Insurance on Customer Loyalty through Customer Satisfaction

Isti Fani (Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia)
Edi Abdurachman (Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia)
Juliater Simarmata (Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia)
Nofrisel Nofrisel (Institut Transportasi dan Logistik Trisakti, Jakarta Timur, Indonesia)



Article Info

Publish Date
30 Jun 2026

Abstract

Purpose: This research investigates how on-time delivery, tracking systems, and cargo insurance influence customer loyalty via customer satisfaction among logistics service users in Jakarta, Indonesia. Methodology: This research utilized a quantitative, cross-sectional approach with purposive sampling of 318 logistics customers in Jakarta (62% business and 38% individual consumers). Five constructs were measured using validated seven-point Likert scales and analyzed via SEM-PLS using SmartPLS with 5,000 bootstrap resampling. Results: On-time delivery significantly affected customer satisfaction (β = 0.326, p < 0.001) and loyalty (β = 0.386, p < 0.001). Tracking systems and cargo insurance also significantly influenced satisfaction (β = 0.285 and 0.249, p < 0.001) and loyalty (β = 0.205, p = 0.002; and β = 0.138, p = 0.009). Customer satisfaction significantly predicted loyalty (β = 0.460, p < 0.001). All mediation paths showed partial mediation (VAF = 28.0%–45.5%). The model explained 79.0% of the satisfaction and 77.4% of the loyalty variance. Conclusions: Customer satisfaction partially mediates the effect of logistics service attributes on loyalty. Building on previous studies, this study categorizes on-time delivery, tracking systems, and cargo insurance into three separate trust dimensions operational, informational, and financial that influence satisfaction and loyalty. Limitations: This study was limited to logistics customers in Jakarta, employed a cross-sectional design, and examined only three service attributes, excluding other potential determinants of loyalty. Contributions: This study enhances the literature on logistics service quality by introducing a three-dimensional trust framework, offering practical insights for providers in Jakarta.

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Journal Info

Abbrev

ahrmr

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Annals of Human Resource Management Research (AHRMR) is an international, peer-reviewed, and scholarly journal which publishes high-quality research to answer important and interesting questions, develop or test theory, replicate prior studies, explore interesting phenomena, review and synthesize ...