Key Resilience Factors Amid Concurrent Crises: The Case of FMCG Firms in Developing Countries

Abstract

This article investigates the factors that support fast-moving consumer goods (FMCG) companies’ resilience in Lebanon throughout a multifaceted crisis. This crisis includes the October 17, 2019 protests, the economic breakdown, the COVID-19 pandemic, as well as the famous Beirut explosion. Adopting an explanatory research design with a mixed-method approach, this study begins with a quantitative method. A survey has been administered to 200 FMCGs and analyzed through structural equation modeling (SEM). Then, a qualitative method follows with 20 semi-structured interviews conducted with senior managers working in successful FMCG companies that could overcome the multifaceted crisis in Lebanon. The results of the quantitative study showed a direct negative impact of the October protests, the economic recession, and the Beirut explosion on the financial performance of the FMCG companies. However, an indirect relationship is found between the COVID-19 pandemic and the FMCGs’ performance. This impact shows that the pandemic deepened the economic recession, which in turn disrupted these companies’ operations. The qualitative study resulted in six factors that are believed to reinforce companies’ resilience when facing crisis and uncertainty: the presence of a formal crisis management cell, investment in technology, employee motivation and retention practices, customer satisfaction, financial diversification, and investment in sustainability initiatives. This study adds to the literature on crisis management, especially in uncertain environments where institutional support is weak. It also concludes with implications for managers and policymakers, as well as acknowledges its limitations and opens doors for future research.