Operational resilience as a mediator between digitalisation and sustainable performance of fast-moving consumer good firms in Nairobi County
Date
2023
Authors
Wambua, G. N.
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Publisher
Strathmore University
Abstract
Since 2019, trade tensions between the US and China and Brexit-related trade uncertainty contributed to a decrease in global industrial production. The COVID-19 pandemic, the Suez Canal blockage in 2021, and the conflict between Russia and Ukraine in 2022 further intensified supply chain disruptions and raised concerns about essential business services on a global scale. Supply disruptions faced by organizations and supply chains can be both external, such as natural disasters (e.g., earthquakes), and man-made disasters (e.g., terrorism), as well as internal, originating from within the boundaries of the supply chain. This study aimed to examine the role of operational resilience in mediating the relationship between digitalization and the sustainable performance of fast-moving consumer goods (FMCG)- food and beverage firms in Nairobi County. The food and beverage sector occupy the highest percentage; 42% in the FMCG industry making it the biggest sector. The specific objectives of the study were to determine the relationship between digitalization and sustainable performance, the relationship between digitalization and operational resilience, the relationship between operational resilience and sustainable performance, and the mediating effect of operational resilience on the relationship between digitalization and sustainable performance. The study was guided by the resource-based view theory, stakeholders’ theory, and the disruption profile framework. The unit of analysis was supply chain managers or coordinators working in the FMCG industry. An explanatory research design was adopted, and purposive and convenient sampling methods were used to select participants. The study followed a positivist research philosophy and employed a quantitative approach to analyze the interaction between the study variables. The population of the study comprised FMCG manufacturing firms operating in Nairobi County. Data were collected using questionnaires, and the validity and reliability of the questionnaire were ensured through appropriate testing. The collected data were analyzed using descriptive and inferential analysis techniques to gain insights into the research objectives. By adopting this research design and methodology, the study aimed to contribute to the understanding of the relationships between digitalization, operational resilience, and sustainable performance in the FMCG industry in Nairobi County. The structural equation modeling (SEM) through SmartPLS revealed a positive and statistically significant relationship between digitalization and sustainable performance in FMCG companies. The study further found that digitalization positively relates to operational resilience. In addition, the study found that operational resilience significantly contributes to sustainable performance. Finally, it was found that operational resilience significantly mediates between digitalization and sustainable performance. Thus, all the hypotheses were supported. These findings suggest that digitalization and operational resilience play significant roles in improving the sustainable performance of FMCG companies in Nairobi County. The study concluded that organizations with higher levels of digital integration and platform capabilities are likely to achieve better sustainable performance outcomes. The research recommended that organizations should establish key performance indicators (KPIs) and metrics to monitor the impact of digitalization efforts on sustainable performance. Regularly tracking and analyzing these metrics will provide valuable insights into the effectiveness of digital initiatives and enable data-driven decision-making.
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Citation
Wambua, G. N. (2023). Operational resilience as a mediator between digitalisation and sustainable performance of fast-moving consumer good firms in Nairobi County [Strathmore University]. http://hdl.handle.net/11071/15395