Supply chain management practices, innovation capabilities and operational performance: An empirical evidence from the FMCG sector

Abstract

The purpose of this paper is to propose a conceptual framework for examining the impact of innovation and supply chain management practices on operational performance of FMCG organizations within the Middle East and North Africa Region. The quantitative data is collected through 519 questionnaires as the research population refers to Henkel across the Middle East and North Africa. Structural Equation Modelling (SEM) is adopted to examine the causal relationships between’ supply chain management practices, innovation capabilities and operational performance. The findings of this paper reveal that Supply chain management practices have a positive influence on operational performance. Supply chain management practices have a positive influence on innovation capabilities. The direct effect between innovation capabilities and operational performance is statistically significant. However, the results of the mediation effect indicate that there is partial mediation effect of the innovation capabilities between supply chain management practices and operational performance.