Examining the mediating effect of Distribution Channels Effectiveness between Distribution channels Innovation and performance of Fast-Moving Consumer Goods in Pakistan

ABSTRACT

The basic objective of this article is to find out whether distribution channel effectiveness mediates between distribution channel innovation and the performance of fast-moving consumer goods in Pakistan.This is based on establishing a connection between distribution channel activity innovations and FMCG performance in terms of assortment, order handling, inventory, transportation, product distribution scheduling, information sharing, Warehouse & Finished Goods, and packaging of products in Fast Moving Consumer Goods of Pakistan. A quantitative study was conducted using 5 points Likert scale questionnaire survey distributed among the organizations. 219 respondents were taken as a sample for empirical investigation. As a methodology, regression analysis was used with the help of SmartPLS statistical software. The findings of this study showed that distribution channel effectiveness mediated the relationship between innovation in assortment, order handling, information system sharing, product & distribution scheduling, warehouse & finished goods, transportation, packaging, warehouse & material handling, and FMCGs performance. Thus, distribution effectiveness does not mediate between innovation in inventory and FMCGs performance. Hence, improvement in innovation channels would be helpful for the firms for performance enhancement.

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