Mediating Role of Knowledge Management and Innovation in the Relationship between Supply Chain Management and Organizational Performance: An Empirical Test in the Fast-Moving Consumer Goods (FMCG) Industry of Pakistan

Authors

  • Ali Zarak Khan The university of Lahore, Pakistan
  • Sydul Arefin Texas A&M University Texarkana, USA

DOI:

https://doi.org/10.62019/abbssr.v4i1.49

Keywords:

Supply chain management practices, knowledge management, innovation, organizational performance, Fast Moving Consumer Goods, PLS-SEM based analysis

Abstract

Supply chain management practices (SCMP) have huge potential to improve organizational performance (OP) in various organizational settings. However, many studies have found that the relationship between SCMP and OP is not direct and is greatly influenced by some other capabilities such as knowledge management (KM) and innovation capabilities of organizations. Prior research mainly focused on developed countries and suggested numerous models and frameworks to adopt and implement SCMP in various industries. However, the mediating role of KM and innovation capabilities in the linkage between SCMP and OP has not been fully grabbed in fast moving consumer goods (FMCG) organizations and especially, Pakistan remained unexplored. This study filled this gap and investigated the mediating role of KM and innovation capabilities in the linkage between SCMP and OP in FMCG organizations of Pakistan. This was carried-out by developing an explanatory model, formulating hypotheses, and testing the hypotheses after gathering sample data from the 194 FMCG organizations of Pakistan and applying PLS based SEM for data analysis. The study revealed many interesting results based on the data from Pakistani FMCG organizations. First, the study exhibited that SCMP positively influences OP in FMCG organizations of Pakistan. Second, the study showed that SCMP positively influences KM and innovation capacities. Third, the study indicated that KM positively affects OP but innovation does not affect OP. Lastly, the study disclosed that KM partially mediates the linkage between SCMP and OP in this context. However, innovation demonstrates no mediating effect in the association between SCMP and OP. The results are vital for theory and practice. Theoretically, the results can be used to develop new and/or update existing theories and frameworks related to SCMP, KM, innovation, and OP. Managers and practitioners can also utilize their scarce resources in limited areas where they should invest their resources, time, and effort for ultimate improvement of OP. Other organizations and even countries can also use the results to improve OP in their contexts.

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Published

2024-06-04

How to Cite

Khan, A. Z., & Arefin, S. (2024). Mediating Role of Knowledge Management and Innovation in the Relationship between Supply Chain Management and Organizational Performance: An Empirical Test in the Fast-Moving Consumer Goods (FMCG) Industry of Pakistan. The Asian Bulletin of Business and Social Science Research, 4(1), 120–125. https://doi.org/10.62019/abbssr.v4i1.49