Operational capabilities, firm competitive performance, and supply chain responsiveness in the fast-moving consumer good manufacturing industry in Gauteng Province
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Date
2022-11
Authors
Hweshure, Nyashadzashe Caleb
Journal Title
Journal ISSN
Volume Title
Publisher
Vaal University of Technology
Abstract
The importance of the fast-moving consumer goods manufacturing industry and its contributions to economic growth and competitiveness in South Africa is well-documented in the literature. The industry’s economic contributions are recognised in employment/job creation, economic empowerment/development, gross domestic product and socio-economic development. However, despite the contributions, the South African fast-moving consumer goods manufacturing industry faces several challenges, which negatively impact its prospects for growth and success. Internal and external challenges include labour costs, poor leadership skills, food labelling scandals, supply chain uncertainties, the Covid-19 pandemic, public unrest/protests in South Africa and natural disasters. One of the proposed solutions to address operational challenges is the implementation of operational capabilities, namely manufacturing and technological capabilities, supply network flexibility and innovation capability. Therefore, the study aimed to investigate operational capabilities’ impact on firm competitive performance and supply chain responsiveness in the fast-moving consumer goods manufacturing industry.
A positivist approach that followed a quantitative research method in data collection was used in this study. A structured survey questionnaire was developed using adapted measurement scales and administered to 420 supply chain management professionals in the fast-moving consumer goods manufacturing industry in Gauteng. Respondents were selected using the non-probability purposive sampling technique. The applied data analysis techniques included descriptive statistics and inferential statistics. Inferential statistics used two approaches, namely exploratory factor analysis and structural equation modelling. The former tested for the factor structure of the collected data, whereas the latter tested for both the psychometric properties of measurement scales and the relationships in the proposed hypotheses.
The results of the study showed an inverse relationship between manufacturing capability and competitive performance. The other three predictor constructs; Technological capability, supply network flexibility and innovation capability, all significantly and positively predicted competitive performance. In turn, firm competitive performance significantly and positively predicted supply chain responsiveness and flexibility.
From a theoretical standpoint, the study generated new information on the relationship between operational capabilities, firm competitive performance, and supply chain responsiveness in the fast-moving consumer goods manufacturing industry of South Africa. The insights from this research provide new knowledge that complements existing literature. Practically the study enables continuous improvement within the fast-moving consumer goods manufacturing industry, allowing it to respond effectively to local and global environments.
Description
MM (SCM) (Department of Supply Chain Management, Faculty of Management Sciences), Vaal University of Technology.
Keywords
Operational capabilities, Manufacturing capability, Technological capability, Supply network flexibility, Innovation capability, Firm competitive performance, Supply chain responsiveness, South African FMCG industry