The impact of digital maturity and digital innovation on supply chain resilience in the South African FMCG industry

Abstract

Digitalisation and its implications on supply chain resilience have been well explored in the context of developed countries. Industries such as the Fast-Moving Consumer Goods (FMCG) industry are highly competitive, and supply chain disruptions harm an organisation’s ability to sustain and grow its market share. This study investigated the relationship between digital maturity and supply chain resilience in South Africa, an emerging market in the FMCG industry. It also investigated the mediation role of digital innovation on the relationship and the influence of company size as a moderator variable. Three hypotheses were developed using insights from previous studies and the theories of dynamic capabilities and resource-based view. While interpreting the three hypotheses, a fourth hypothesis on the moderation role of company size emerged. Data were collected using a quantitative online survey tool, with purposive sampling employed. A total of 206 valid responses from supply chain managers were collected, analysed, and interpreted using structural equation modelling and regression analysis. The result of the study supported a strong positive relationship between digital maturity and digital innovation. A similar relationship between digital innovation and supply chain resilience was also supported. Furthermore, the study found that the direct relationship between digital maturity and supply chain resilience was insignificant but moderated by company size. This deviated from previous studies conducted in developed markets and/or with small and medium enterprises. The key drivers of digital maturity and supply chain resilience are identified, and the practical implications for key stakeholders and future research directions are outlined.