HOW CONSUMER PACKAGED GOODS COMPANIES SUCCEED IN OMNICHANNEL RETAILING: MEDIATING AND MODERATING ROLE OF OPERATIONAL FLEXIBILITY AND MARKET DYNAMICS
Keywords:
Organizational Agility, Innovation Capability, Distribution Strategy Transformation, Operational Flexibility, Market Dynamism, Business Performance.Abstract
The present study investigates the impact of organisational agility, innovation capability, and the transformation of distribution strategy on business performance within Indonesia’s Consumer Packaged Goods (CPG) sector. The companies included in this research operate within the context of omnichannel retailing. Employing the Structural Equation Modelling (SEM) technique (Kasemsap), the study gathered data from 175 respondents, comprising sales and marketing managers. The research further explores the mediating function of operational flexibility and examines the moderating effect of market dynamism on the relationships between the specified independent and dependent variables. Findings derived from the SEM analysis indicate that distribution strategy transformation, innovation capability, and market dynamism significantly influence business performance in the targeted industry. In contrast, the results do not support a statistically significant effect of organisational agility on business performance. Furthermore, the study confirms the notable moderating influence of market dynamism on the linkage between operational flexibility and performance outcomes. Additionally, operational flexibility is found to serve as a significant mediator between distribution strategy and business performance. Based on these findings, the study offers several practical discussions and policy-oriented recommendations.