Operational Resilience, Digitalisation and Sustainable Performance of Fast-Moving Consumer Goods Firms in Nairobi County

Abstract

Purpose: Since 2019, trade tensions between the US and China and Brexit-related trade uncertainty have decreased global industrial production. The COVID-19 pandemic, the Suez Canal blockage in 2021, and the conflict between Russia and Ukraine in 2022 intensified supply chain disruptions. It raised concerns about essential business services on a global scale. Supply disruptions faced by organisations and supply chains can be both external, such as natural disasters (e.g., earthquakes), and artificial disasters (e.g., terrorism), as well as internal, originating from within the boundaries of the supply chain. This study aimed to examine the mediating role of operational resilience in the relationship between digitalisation and sustainable performance of fast-moving consumer goods (FMCG)- food and beverage firms in Nairobi County.

Methodology: An explanatory research design was adopted, and purposive and convenient sampling methods were used to select 288 participants. The study followed a positivist research philosophy and employed a quantitative approach to analyse the interaction between the study variables. The study population consisted of 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 analysed using descriptive and inferential analysis techniques to gain insights into the research objectives.

Findings: The structural equation modelling (SEM) through Smartpls revealed a positive and statistically significant relationship between digitalisation and sustainable performance in FMCG companies. The study further found that digitalisation positively relates to operational resilience. In addition, operational resilience significantly contributes to sustainable performance. Finally, operational resilience significantly mediates between digitalisation and sustainable performance. Thus, all the hypotheses were supported.

Unique Contribution to theory, practice and policy: These findings suggest that digitalisation and operational resilience play significant roles in improving the sustainable performance of FMCG companies in Nairobi County. The study concluded that organisations with higher levels of digital integration and platform capabilities will likely achieve better sustainable performance outcomes. The research recommended that organisations establish key performance indicators (KPIS) and metrics to monitor the impact of digitalisation efforts on sustainable performance. Regularly tracking and analysing these metrics will provide valuable insights into the effectiveness of digital initiatives and enable data-driven decision-making.