IMPACT OF TECHNOLOGY AND HUMAN CAPITAL ON FINANCIAL PERFORMANCE IN LISTED FMCG COMPANIES IN NIGERIA
DOI:
https://doi.org/10.67199/f182xt35Keywords:
Technology, Human Capital, Financial Performance, FMCGAbstract
This study investigates the impact of technology adoption and human capital development on the financial performance of listed Fast-Moving Consumer Goods (FMCG) companies in Nigeria. Using a balanced panel of five firms Nestlé Nigeria Plc, Unilever Nigeria Plc, Cadbury Nigeria Plc, Dangote Sugar Refinery Plc, and Nigerian Breweries Plc over the period 2019–2024, the analysis applies panel regression techniques to explore both the direct and interactive effects of resource investments on profitability. Fixed Effects regression results, supported by diagnostic testing, indicated that technology expenditure (β = -0.92), human capital (β = -0.57), and digital maturity (β = -0.81) each exerted negative and statistically significant short-term effects on ROA. However, the interaction term between technology and human capital was positive (β = +0.45), suggesting that joint deployment of these resources can mitigate cost pressures and enhance performance over time. Robustness checks, including lagged regressions, further revealed that resource investments begin to yield positive effects with a delay, consistent with the resource-based view (RBV) and human capital theory. The findings highlight that while technology and workforce investments initially reduce profitability, they represent strategic commitments essential for long-term competitiveness and resilience in Nigeria’s evolving FMCG sector
Keywords: Technology, Human Capital, Financial Performance, FMCG.
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