Abstract

Directly shape customer behavioral outcomes. Despite theoretical advances in the field of digital transformation, the precise mechanisms linking data-driven capability (DDC) to demand-side value creation remain poorly understood. Drawing on resource-based perspectives, dynamic capabilities, and signaling theory, this study presents a mechanism-based model in which DDC shapes customer loyalty (LOY) through market innovation quality (MIQ) and brand credibility (BC), influenced by the level of sustainability authenticity (SA). The study used a two-way–two-source design; the first wave of data including DDC and SA was collected from 300 innovative and active companies in knowledge-based manufacturing and services industries (managers or marketing experts), and in the second wave, MIQ data was collected from the same managers and BC and LOY data from more than 900 customers (an average of three customers per company). Modeling with PLS-SEM showed that DDC has a significant and significant effect on MIQ (β=0.41) and MIQ significantly increases brand credibility (β=0.46). BC is also the strongest predictor of customer loyalty (β=0.52). Mediation results showed that BC plays a full mediating role in the path DDC → MIQ → BC → LOY. In addition, moderation analysis showed that sustainability authenticity strengthens the effect of MIQ on BC (β=0.14) and the effect of BC on LOY (β=0.11); meaning that market innovation and brand credibility are more effective in companies that implement sustainability in a real, transparent and consistent way with their claims. Overall, these findings suggest that the true value of data-driven capabilities is revealed when their output is delivered in the form of visible and credible market innovations, accompanied by genuine sustainability measures. By providing a simple, economical, and actionable model, this research adds to the literature on digital transformation, market innovation, and sustainable brands, and provides practical guidance for managers on the path to building sustainable loyalty.