Fast Moving Consumer Goods Companies Research Articles

Physical Distribution Practices and Marketing Performance of Selected Fast Moving Consumer Goods Companies in South-South Region of Nigeria

This study was designed to investigate the influence of physical distribution practices (transportation management, warehousing management, communication and information systems, and order processing) on the marketing performance of selected fast-moving consumer goods (FMCG) companies in the south-south region of Nigeria. The survey research design approach was adopted using a structured questionnaire to collect data from 247 selected FMCG sales representatives involved in the distribution of FMCG products in the south-south region of Nigeria. Stratified random sampling was employed. The data gathered was analysed using percentages and frequency tables. The formulated hypotheses were tested using a multiple regression approach. Findings from the study revealed a strong positive influence between the independent variables (transportation management, warehouse management, communication and information systems, and order processing management) and the dependent variable (marketing performance). The researchers suggest that FMCG companies should prioritise transportation management to facilitate better and more efficient movement of goods and people, thereby improving their marketing performance. Given the limitations of this study, the researchers presented practical implications and directions for future research.

Operationalization of ESG-Integrated Strategy Through the Balanced Scorecard in FMCG Companies

The increasing focus on sustainability and climate change mitigation necessitates that corporate strategies not only build competitive advantage but also contribute to the creation of sustainable operations. The purpose of the article is to present, based on the analyses of the development of the strategic targets of leading Fast-Moving Consumer Goods (FMCG) companies, a method for operationalizing an ESG-adapted corporate strategy within FMCG companies using the Balanced Scorecard (BSC). ESG, encompassing environmental, social, and governance factors, requires a shift in both strategic management theory and practice. The author explores how ESG metrics can be integrated into the traditional BSC framework alongside financial, customer, and business processes and learning and growth perspectives to align with the growing importance of sustainability. The study identifies specific measures that contribute to a successful transition toward sustainable business practices. The findings demonstrate that the BSC, when adapted to incorporate ESG considerations, is an effective tool for strategy implementation and operational management in FMCG companies. While the proposed framework focuses on the FMCG sector, it has potential applications across other industries. The article makes important theoretical contributions, though it would benefit from further empirical research, sector-specific comparisons, and a more detailed examination of external ESG factors that impact corporate strategy.

Emerging Trends in Sustainability Practices Within the FMCG Sector for A Better Future

The Fast-Moving Consumer Goods (FMCG) sector is undergoing a major transformation driven by increasing demands for sustainability. This article explores emerging sustainability trends, such as sustainable packaging, circular economy models, supply chain transparency, consumer engagement, and innovative product development. These practices not only mitigate environmental impact but also enhance business competitiveness and brand loyalty. By highlighting how leading FMCG companies are incorporating these trends, the article aims to inspire broader adoption of sustainable strategies that benefit both businesses and the environment.

Implementing Project Management Integrated with ITIL: Case Study in a Fast-Moving Consumer Goods Company

At the last phase of an IT project, it will transfer to the operations team. It is critical to ensure the change management process integrated between project and operations is working smoothly. The study highlights lessons from implementing project management integrated with ITIL. This research is conducted on a multinational Fast-Moving Consumer Goods (FMCG) company that has already implemented project management integrated with ITIL. The study adopts PMBOK and ITIL frameworks, previous studies, and guided interviews, which are then analyzed using socio-technical aspects. This research can enrich existing literature, especially regarding IT project management and service areas. The study concludes that implementing project management integrated with ITIL brings a steadier process to IT projects. One of the socio-technical aspects changed, and the others should be adjusted. Each implementation phase results in different Socio-Technical Systems (STS) components. Nevertheless, as a whole implementation project, the company has already completed all components required.

The Impact of Customer Retention on Organization Profitability in the FMCG Sector in Nigeria

In the competitive domain of fast-moving consumer goods (FMCG), retaining customers is essential for the overall organisational performance of an FMCG company. This research investigated the impact of customer retention on organisational profitability in the Fast-Moving Consumer Goods (FMCG) sector in Nigeria. The study employed a cross-sectional survey approach, with data collected from 248 employees in 10 different FMCG companies in Oyo State, South West, Nigeria. The findings revealed a strong positive correlation (r=0.783) significant at p < 0.01 between customer retention and organisational profitability, highlighting customer retention as a key driver of sustained profitability. The study further explored specific components of customer retention, including personalised marketing, loyalty programs, quality products, and customer support, all of which showed strong positive associations with organisational profitability. Survey results indicated that customer satisfaction is a leading factor contributing to customer retention, emphasising the importance of understanding and meeting customer expectations. Based on these findings, recommendations are provided for FMCG companies to prioritise customer retention strategies, such as personalised marketing and quality customer support, to enhance organisational profitability and success in the Nigerian FMCG sector.

Matching inventory and demand in a Fast Moving Consumer Goods company: A Decision Support System

Demand fulfilment and its core, order promising, is a key business function that directly impacts the company’s ability to generate revenue through sales. For companies operating under a Make-To-Stock (MTS) production strategy, it is tantamount to matching both on-hand and projected stock to customer demand. The prevalent manner to carry out this task is to use either First-Come-First-Served policies, or simple allocation rules embedded in commercially available software. However, order promising is, in general, quite complex due to uncertainties both in demand and supply, and it can become extremely challenging when demand exceeds the stock. Therefore, several contributions have established the advantages of order promising using optimisation models and/or sophisticated algorithms. However, these works assume that customers can be clustered according to their profitability/importance and it remains open to test whether this also holds for homogeneous customers. Furthermore, due to the exploratory nature of most studies, they assume rather stylised scenarios (such as e.g. single product-orders, partial shipments) that do not clarify how model-based order promising would perform in a realistic setting.In this paper we present a decision framework for order promising in a Fast Moving Consumer Goods (FMCG) company in the brewery sector where customers cannot be clustered and that incorporates many realistic features (such as e.g. multi-product orders, on-full delivery, or perishability constraints). The decision framework relies on several iterations of a MILP model that allocates the stock to customer and reserves some portion of the stock for orders arriving later on. These functionalities are embedded in a Decision Support System (DSS) that also helps with the renegotiation of the orders that cannot be served. Results reported from the usage of the DSS show its ability to obtain high service levels and to favourably compare to other order promising policies. Furthermore, in order to analyse the instance sizes that can be solved in reasonable time, and the parameters that influence the performance and results of the MILP model, an extensive computational experience has been carried out using a testbed that covers a wide range of business scenarios.

HOW DO DIFFERENT DEBT LEVELS INFLUENCE THE FINANCIAL PERFORMANCE OF FMCG COMPANIES IN INDIA?

This study examines the impact of capital structure on the financial performance of Fast-Moving Consumer Goods (FMCG) companies listed on the Bombay Stock Exchange (BSE) from 2011 to 2021. It focuses on how varying levels of short-term, long-term, and total debt influence key financial metrics such as Return on Assets (ROA), Return on Equity (ROE), Earnings Per Share (EPS), and Tobin’s Q. Using regression models with panel data, the research evaluates the relationship between debt ratios and financial performance, utilizing both fixed and random effects models. The findings reveal that higher levels of debt, especially long-term debt, negatively impact financial performance. Short-term debt is more commonly used in the FMCG sector, but overall, debt tends to reduce profitability and shareholder value. Notably, Earnings Per Share (EPS) had the highest average among the performance indicators, though all debt ratios demonstrated significant negative correlations with ROA, ROE, EPS, and Tobin’s Q. The study also highlights that larger and older firms are more effective at managing the negative effects of debt, performing better financially than smaller or younger firms. It recommends that FMCG companies prioritize internal funding over debt, as high debt levels can lead to financial strain. Future research could explore the impact of capital structure in other industries or include macroeconomic factors.

Developing artificial intelligence enabled Marketing 4.0 framework: an Industry 4.0 perspective

PurposeThe paper aims to analyze the potential of artificial intelligence (AI) in enhancing marketing capabilities for Indian fast-moving consumer goods (FMCG) firms, with appropriate emphasis on dynamic capabilities (DC). By integrating AI into their operations, companies can enhance diverse marketing practices, leading to improved efficiency and effectiveness. In addition, the study offers valuable insights and guidance for effectively implementing AI in marketing strategies.Design/methodology/approachIn-depth interviews of 26 seasoned professionals from various positions in the Indian FMCG sector were conducted for the study. A systematic approach of coding that includes open, axial and selective coding was made to recognize the themes that represent AI-enabled marketing practices. This approach ensured that the themes were precisely identified and comprehensively analyzed. Interviews followed by a rigorous coding process provide valuable insights into the practical implementation of AI-enabled marketing practices for the Indian FMCG industry.FindingsThe study’s results underscore the importance of AI in enhancing marketing practices for FMCG firms, particularly in four critical areas: personalization, consumer engagement, marketing automation and strategic goals. By adopting AI in these areas, Indian FMCG firms can significantly enhance their marketing capabilities, increasing efficiency, effectiveness and gaining a competitive advantage.Research limitations/implicationsThe study uses qualitative data analysis to explain how DC through AI technologies can enhance digital marketing practices for Indian FMCG organizations. Furthermore, the study provides valuable insights into how AI technologies can improve marketing capabilities and emphasizes the importance of DC. The study also proposes a framework for AI-enabled Marketing 4.0 that can guide FMCG firms seeking to leverage AI technologies to enhance their marketing practices.Originality/valueThis study outlines the potential for enhancing marketing practices by adapting AI in the Marketing 4.0 environment for Indian FMCG companies, highlighting the importance of DC in achieving this goal.

Cultivating a culture of safety and innovation in the FMCG sector through leadership and organizational change

This paper examines the role of leadership and organizational change in shaping such a culture within FMCG companies. Drawing upon insights from organizational psychology, change management, and leadership theories, the paper explores strategies for creating an environment that prioritizes safety, encourages innovation, and fosters continuous improvement. Key themes include the importance of leadership commitment to safety and innovation, the need for clear communication and transparency, and the value of employee empowerment and engagement. Additionally, the paper discusses the role of organizational structures, systems, and processes in supporting a culture of safety and innovation. Through case studies and real-world examples, the paper highlights best practices and practical strategies for FMCG companies looking to cultivate a culture of safety and innovation. Cultivating a culture of safety and innovation within the fast-moving consumer goods (FMCG) sector is crucial for fostering resilience, driving growth, and ensuring long-term success These include fostering a learning mindset, promoting collaboration and knowledge sharing, and leveraging technology to enhance safety practices and drive innovation. Ultimately, the paper argues that cultivating a culture of safety and innovation requires a holistic approach that involves leadership commitment, organizational change, and active engagement from employees at all levels. By prioritizing safety and innovation, FMCG companies can not only mitigate risks and ensure compliance but also drive creativity, improve operational efficiency, and maintain a competitive edge in today's rapidly evolving marketplace. Keywords: FMCG Sector, Safety Culture, Organizational Change, Technology Integration, Employee Engagement, Innovation.

Integrating Qualitative and Quantitative Approaches: The Impact of AI Design on Consumer Perception and Buying Behavior in the FMCG Sector

The motivation behind this examination is to explore the relationship between AI designs, consumer perception, consumer buying behaviour, and consumer literacy in Pakistan's fast-moving consumer goods (FMCG). To apply ethnography to research the consumer’s buying behaviour in the context of AI designs in the FMCG Sector. This study used the mixed-method approach, a quantitative exploration plan and utilised a survey method to collect data from 250 FMCG sector consumers in Lahore via an online self-administered survey. The paper applied SEM to examine the hypotheses and analyze the data. The qualitative portion used eight in-depth semi-structured interviews for data collection. The paper found that AI designs affected consumer perception (CP), consumer perception (CP) affected by consumer buying behaviour (CBB), and CP intervened in the impact of AI designs on CBB. Consumer literacy (CL) is moderated between consumer perception (CP) and consumer buying behaviour (CBB). The findings also reveal the positive impact of AI on consumer buying behaviour, through individual perspectives. The study adds to the works on the link between AI designs, CP, CBB, and CL in the FMCG business. It gives experimental proof to help the hypotheses that AI designs influence CP, CP influences CBB, and CP explains the impact of AI designs on CBB, CL moderated between CP and CBB. AI designs can enhance consumer perception and buying behaviour of FMCG products, leading to higher market performance and customer satisfaction. FMCG companies can use AI to innovate, customize, and educate their products and services for different consumer segments. The research aims to identify the association between AI designs, CP, CBB and CL in the FMCG industry. It offers an original viewpoint on how AI designs can improve CP, how CP can prompt CBB, and how consumer literacy is moderated between CP and CBB in the fast-moving consumer goods business.

A Study of Consumer Buying Behavior and Brand Loyalty in a FMCG Market

Abstract: The Fast-Moving Consumer Goods (FMCG) market is a highly competitive and dynamic landscape, where understanding consumer buying behaviour and brand loyalty is crucial for business success. This research paper delves into the intricate relationship between these two crucial elements, aiming to provide valuable insights for FMCG companies to enhance their marketing strategies and foster long-term customer engagement. The study employs a mixed-methods approach, combining quantitative data analysis and qualitative insights, to explore the factors influencing consumer purchasing decisions and the drivers of brand loyalty in the FMCG sector. The research examines the impact of various elements, such as promotions, pricing, perceived quality, and brand trust, on consumer behaviour, as well as the emotional connections, repeated purchases, and advocacy that contribute to brand loyalty.

Investigating the Impact of Product Quality, Price Sensitivity, and Brand Reputation on Consumer Purchase Intentions in the FMCG Sector

This research investigates the intricate dynamics influencing consumer purchase intentions within the fast-moving consumer goods (FMCG) sector, focusing on the impact of product quality, price sensitivity, and brand reputation. A quantitative research design was adopted, with data collected from a sample of 500 respondents through an online survey. Descriptive statistics, correlation analysis, regression analysis, and ANOVA were employed to analyze the data comprehensively. The findings reveal a strong positive correlation between perceived product quality and consumer purchase intentions, emphasizing the importance of maintaining high-quality standards. Price sensitivity was found to negatively impact purchase intentions, highlighting the need for strategic pricing strategies. Brand reputation emerged as a significant predictor of purchase intentions, emphasizing the enduring value of strong brand equity. Demographic analyses identified distinct target segments based on age and income levels. The study contributes valuable insights for FMCG companies in developing tailored marketing strategies and enhancing market competitiveness.

An Empirical Analysis of Brand Loyalty and Marketing Strategies in the FMCG Sector of China

This study examines the complex connection involving brand loyalty and marketing strategies in the Fast-Moving Consumer Goods (FMCG) industry, with a focus on the importance of innovative marketing techniques in fostering consumer loyalty. The study utilizes a mixed-method approach, combining quantitative data from consumer surveys with qualitative insights from industry expert interviews. This methodology allows for a full analysis of current marketing trends and their effectiveness. The study initially examines crucial determinants that impact brand loyalty in the FMCG industry, encompassing product quality, pricing, customer service, & brand perception. The text analyzes the effects of several marketing methods, such as digital marketing, personalized communication, and environmentally friendly initiatives, on key factors that influence customer loyalty. The investigation indicates that digital marketing & personalization are strong indicators of brand loyalty, illustrating a change in customer preferences towards firms that provide more customized and captivating experiences. The study examines the difficulties encountered by FMCG companies in efficiently implementing these tactics, including the need to strike a balance between cost and effectiveness, handling both online and offline channels, including aligning marketing strategies with the swiftly evolving customer expectations. The paper provides strategic advice for FMCG companies seeking to improve brand loyalty. It suggests that adopting customer-centric & adaptive marketing tactics is essential for long-term success in the competitive FMCG industry. This research enhances the comprehension of the complex relationship between brand loyalty and marketing in the FMCG sector by presenting factual facts and strategic insights. It provides essential information for both academic studies and practical implementation.

Comparative analysis and implementation of a transformative business and supply chain model for the FMCG sector in Africa and the USA

This paper conducts a comparative analysis of business and supply chain models in the Fast Moving Consumer Goods (FMCG) sector between Africa and the USA, aiming to identify transformative strategies for enhancing efficiency, sustainability, and market penetration. The FMCG sector serves as a critical component of both economies, contributing significantly to GDP and employment. However, stark differences in infrastructure, consumer behavior, and regulatory environments between Africa and the USA necessitate tailored approaches to business and supply chain management. Drawing on empirical data and case studies, this study examines key elements of successful FMCG models in each region, including distribution networks, inventory management, technology adoption, and market dynamics. It explores how factors such as urbanization, income levels, and cultural preferences influence consumer demand and supply chain strategies. Moreover, the analysis delves into the impact of emerging trends such as e-commerce, sustainability, and digitalization on FMCG operations in both regions. The findings reveal opportunities for mutual learning and adaptation between Africa and the USA. While the USA boasts mature infrastructure and advanced technological capabilities, Africa offers potential for innovative solutions tailored to its unique challenges and opportunities. Through cross-regional knowledge exchange and strategic partnerships, FMCG companies can develop hybrid models that combine the best practices from both regions to drive growth, reduce costs, and enhance resilience. The study concludes by proposing actionable recommendations for FMCG companies seeking to implement transformative business and supply chain models in Africa and the USA, emphasizing the importance of flexibility, agility, and stakeholder collaboration in navigating diverse market landscapes and driving sustainable growth.

A Study on the Employee Welfare Schemes on Organizational Performance in the Fast-Moving Consumer Goods (FMCG) sector.

In today's dynamic business environment, characterized by fierce competition and rapidly evolving consumer demands, the fast-moving consumer goods (FMCG) sector stands out as a pivotal industry. Within this landscape, organizations strive not only to maintain competitiveness but also to thrive by attracting, motivating, and retaining top talent. Employee welfare schemes have emerged as a strategic tool for achieving these objectives, as organizations recognize the significant impact of employee well-being on overall organizational performance. This study endeavours to delve deeper into the nexus between employee welfare schemes and organizational performance within the FMCG sector. With the overarching aim of contributing to the existing body of knowledge in human resource management and organizational studies, this research adopts a comprehensive mixed-methods approach. By integrating quantitative analysis and qualitative insights, this study seeks to provide a nuanced understanding of the multifaceted relationship between employee welfare initiatives and organizational success. At its core, the quantitative component of this research entails the collection of primary data through surveys administered to employees and managers across diverse FMCG companies. These surveys will capture vital information regarding the types of employee welfare schemes implemented, their perceived effectiveness, and their impact on key performance indicators (KPIs) such as productivity, employee satisfaction, retention rates, and overall organizational success metrics.

Integrating behavioral science into operational risk management: A new paradigm for the FMCG sector

This paper explores the rationale for integrating behavioral science into ORM within the FMCG sector, examines key behavioral principles relevant to risk management, and proposes practical frameworks for implementation. By adopting this new paradigm, FMCG companies can enhance their resilience, adaptability, and overall performance in an increasingly complex and dynamic business environment. Operational risk management (ORM) is paramount for ensuring the stability and success of businesses, particularly in fast-moving consumer goods (FMCG) sectors where operational disruptions can lead to significant repercussions. However, traditional ORM approaches often overlook the human element, focusing solely on systems, processes, and external factors. This paper advocates for the integration of behavioral science into ORM, recognizing the pivotal role of human behavior in shaping operational risks and offering strategies to effectively mitigate these risks. The rationale for integrating behavioral science into ORM within the FMCG sector is explored, emphasizing the need to understand and influence human behavior to enhance resilience and adaptability. Key behavioral principles relevant to risk management are examined, including decision-making biases, social dynamics, and cognitive heuristics. These insights provide a foundation for developing practical frameworks for implementation, encompassing areas such as demand forecasting, compliance, and employee engagement. By adopting this new paradigm, FMCG companies can enhance their resilience, adaptability, and overall performance in an increasingly complex and dynamic business environment. Integrating behavioral science into ORM enables companies to anticipate and address human factors that contribute to operational risks, leading to more effective risk management strategies and improved business outcomes .In conclusion, the integration of behavioral science into ORM represents a paradigm shift that recognizes the importance of understanding and influencing human behavior in mitigating operational risks. By incorporating behavioral insights into their risk management practices, FMCG companies can better navigate challenges, capitalize on opportunities, and ultimately, achieve sustained success in today's competitive marketplace.

STRATEGIC OPERATIONS MANAGEMENT IN FMCG: A COMPREHENSIVE REVIEW OF BEST PRACTICES AND INNOVATIONS

Strategic operations management (SOM) in the fast-moving consumer goods (FMCG) industry plays a crucial role in driving efficiency, quality, and customer satisfaction. This paper presents a comprehensive review of best practices and innovations in SOM within the FMCG sector, aiming to provide insights into how companies can optimize their operations to achieve competitive advantage and sustainable growth. The review begins by examining the key challenges faced by FMCG companies, including demand volatility, short product life cycles, and complex supply chains. It then explores how strategic operations management practices can help address these challenges and improve overall performance. One of the key areas of focus in SOM for FMCG companies is inventory management. Best practices such as demand forecasting, lean inventory principles, and just-in-time (JIT) inventory systems are discussed, highlighting their importance in reducing stockouts, minimizing waste, and improving overall supply chain efficiency. Another critical aspect of SOM in the FMCG industry is production planning and scheduling. The review outlines how advanced planning tools, such as enterprise resource planning (ERP) systems and advanced analytics, can help FMCG companies optimize production processes, reduce lead times, and enhance flexibility to respond to changing market demands. Furthermore, the paper discusses the role of technology and innovation in enhancing SOM practices in the FMCG sector. It explores how technologies such as automation, artificial intelligence (AI), and the Internet of Things (IoT) are transforming FMCG operations, enabling companies to achieve higher levels of efficiency, quality, and sustainability. The review also highlights the importance of collaboration and partnerships in SOM for FMCG companies. It discusses how strategic alliances with suppliers, distributors, and other stakeholders can help FMCG companies optimize their supply chains, reduce costs, and improve customer satisfaction. Overall, this paper provides a comprehensive overview of best practices and innovations in strategic operations management for FMCG companies. It emphasizes the importance of adopting a holistic approach to SOM, integrating people, processes, and technology to achieve competitive advantage and sustainable growth in the dynamic FMCG industry. This review paper systematically examines existing literature on operations management within the FMCG sector, highlighting effective strategies for coordinating operations, crew scheduling, and logistics to uphold professionalism and achieve peak performance. It aims to aggregate insights on process improvement opportunities, conflict management techniques, and cross-functional team dynamics that have led to world-class customer experiences and increased product sales. The review will also discuss the role of technology in maintaining operational records and facilitating continuous improvement in FMCG logistics and supply chain management.
 Keywords: Innovations, Best Practices, SOM, FMCG, Comprehensive.

OPTIMIZING FMCG SUPPLY CHAIN DYNAMICS: A NOVEL FRAMEWORK FOR INTEGRATING OPERATIONAL EFFICIENCY AND CUSTOMER SATISFACTION

This paper proposes a groundbreaking theoretical model specifically designed for the FMCG sector, focusing on optimizing supply chain dynamics to balance operational efficiency with customer satisfaction. Drawing on hands-on strategies and problem-solving abilities, the framework aims to offer practical solutions for common challenges faced by FMCG operations managers, such as inventory management, demand forecasting, and efficient resource allocation. The fast-moving consumer goods (FMCG) industry is characterized by intense competition, short product life cycles, and rapidly changing consumer preferences. In this challenging environment, optimizing supply chain dynamics is crucial for FMCG companies to achieve operational efficiency and enhance customer satisfaction. This concept paper presents a novel framework for integrating operational efficiency and customer satisfaction in FMCG supply chains, aiming to provide insights and strategies for FMCG companies to improve their supply chain performance. The framework emphasizes the importance of aligning supply chain strategies with customer needs and preferences. By focusing on key areas such as inventory management, distribution network efficiency, and technology integration, FMCG companies can improve their supply chain agility and responsiveness. Additionally, the framework highlights the importance of leveraging data analytics and technology to enhance supply chain visibility and decision-making. Implementing the framework requires collaboration among stakeholders, including suppliers, manufacturers, distributors, and retailers. By working together to optimize supply chain processes and enhance customer service, FMCG companies can gain a competitive advantage in the marketplace. Overall, the framework offers a comprehensive approach to optimizing FMCG supply chain dynamics, with the ultimate goal of improving operational efficiency, reducing costs, and enhancing customer satisfaction.
 Keywords: FMCG, Supply Chain, Customers, Framework.

A Study on Factors Influencing Buying Preference of Consumers Towards Fast Moving Consumer Goods

Fast-Moving Consumer Goods (FMCGs) occupy a central role in our daily lives, demanding a deep understanding of consumer preferences for success in this dynamic market. This research delves into the intricate web of factors influencing consumer buying behaviour for FMCGs. It goes beyond the traditional marketing mix (price, product, promotion, place) by examining the interplay between psychological and physiological needs that shape purchase decisions. Additionally, the research investigates the influence of demographic factors like income and cultural background on consumer preferences. The goal of this multifaceted strategy is to offer a thorough grasp of the intricate decision-making process for FMCGs. The research’s conclusions will be very helpful to FMCG companies as they create focused strategies and persuasive advertising campaigns that appeal to their target market.

Affective Trust in the Supervisor and Innovative Work Behavior: The Effects of Proactive Skill Development and Learning Goal Orientation

The main objective of this study was to examine the relationship between affective trust in the supervisor and innovative work behavior. In addition, this paper investigated the mediating role of proactive skill development in the affective trust - innovative work behavior relationship and the moderating role of learning goal orientation in the affective trust – proactive skill development relationship. Data for this study were collected from 220 employees drawn from four FMCG (fast moving consumer goods) companies based in Pakistan. Multiple regression analyses and the bootstrapping procedure were used to test the research hypotheses. Results revealed that proactive skill development partially mediated the effects of affective trust in the supervisor on innovative work behavior. Furthermore, we found that learning goal orientation strengthened the direct effect of affective trust in the supervisor on proactive skill development and also strengthened its indirect effect on innovative work behavior. The theoretical and practical implications of our results and the limitations of this research are discussed.