Connecting operational capabilities, supply chain responsiveness and flexibility in the fast-moving consumer goods manufacturing sector: The mediation of competitive performance

Abstract

Purpose: The study aimed to investigate the relationships among operational capabilities, firm competitive performance, supply chain responsiveness and flexibility in the fast-moving consumer goods (FMCG) manufacturing sector in South Africa. The study also interrogated the mediating role of competitive performance in this association with the same sector. This investigation stemmed from operational challenges affecting FMCG’s competitive sustainability.
Design/methodology/approach: A correlational design was used to collect data from 420 purposively selected supply chain professionals from the FMCG manufacturing sector in Gauteng province. Data were analysed using partial least squares structural equation modelling.
Findings/results: Three operational capabilities – innovation, technology and supply network diversity – emerged as driving factors of competitive performance. Competitive performance positively influenced the FMCG supply chain’s flexibility and responsiveness. Competitiveness mediated the impact of operational capabilities on the flexibility and diversity of the FMCG supply chain.
Practical implications: Operational capabilities are a vital source of competitive performance and a supply chain flexibility and responsiveness of FMCG manufacturing firms.
Originality/value: The study applies a unique research model to the FMCG manufacturing supply chain, making it a novel attempt to apply that empirical lens to this economic sector in South Africa.