Strategic Management Capabilities and Performance of Pharmaceutical Companies in Nairobi City County, Kenya
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Date
2022
Authors
Mwangi, Tabitha
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
In the world of competition and unpredictable business environment, competitive organizations are rethinking on strategic capabilities as drivers of organizational performance. Deteriorating performance of organizations and more specifically pharmaceutical companies in Kenya is attributed by numerous challenges such as competition, change regulations and influence of globalization thus the need to rethink on strategic capabilities to improve performance. Therefore, the aim of this study was to investigate the influence of strategic management capabilities on performance of pharmaceutical companies in Nairobi City County, Kenya. The study specifically examined the influence of technological, leadership, employee capabilities on the performance of pharmaceutical companies. The study was guided by resource based view theory, dynamic capability theory, diffusion of innovation theory and transformative leadership theory. Descriptive research design was adopted in this study research process. The unit of analysis was 27 pharmaceutical companies operating in Nairobi City County, Kenya. The unit of observation was 324 employees who include; customer service representatives, operations managers, procurement managers, marketing managers and production managers. Stratified sampling method was used to sample the respondents according to their department in order to ensure representativeness of all the cases. Simple random sampling method was used to select the respondents. The sample size was 179 respondents. The study used primary data that was collected using questionnaires. Questionnaires were piloted to 18 respondents and these respondents were not included in the final data collection process. Content analysis technique was used to analyse qualitative data. Descriptive statistics such as mean scores, frequency distribution tables, standard deviation and percentage was used to analyse quantitative data. Further the study carried out regression analysis to establish the relationship between variables. The study established that technology capability, leadership capability, employee capability and product design capability had a positive and significant influence on organizational performance of pharmaceutical companies in Nairobi City County, Kenya. The study concludes that technology capability enables that organization to gain the ability to streamline repetitive processes with automation and focus on their core competence such as building new client relationships or providing more attentive customer service. Leadership capability promotes a culture of cohesion and collaboration within the workplace. Employee capability ensures that organization-funded training and professional development activities are cost-effective, goal-oriented and productive. Pharmaceutical companies have a very effective product design implementation that has enhanced their performance by attracting more consumers, providing ease, and making services available to their customers. The study recommends that the organization should pay keen attention to importance of new technology, create an environment for technology innovation and constantly evaluate the maintenance strategies for efficient and effective operation of the pharmaceutical companies. The organizational leadership should exercise discipline by making sure that they meet the deadlines of the given tasks, conducting meetings in the stipulated time frame. The organizations should make sure employees are clear about their work assignments means communicating those expectations well. The pharmaceutical companies should create a solid understanding of their opportunities by looking at the entire market based on their customer to determine the actual potential.
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CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
In the world of competition and turbulent business environment, achieving operational performance in organizations is dependent on multiple factors which may be internal and external (Quinn & Hilmer, 2014). Burak (2013) observe that in the modern competitive business environment, organizations from one sector to another can utilize strategic resources in order to achieve short term and long term goals. Selecting a business strategy that exploits valuable resources and distinctive competencies not only promotes operational performance of firms but also influences sustainable competitiveness of firms.
With unpredictable business environments, realigning strategic resources and capabilities to suit the changing business trends is viewed to be one of the drivers of organizational productivity in terms of profits, new product development, change implementation, service efficiency and effectiveness. Underutilized organizational resources and capabilities can subject an organization to hostile business environment thus inability to cope with changing technologies and consumer demands (Hitt, Keats & De-Marie, 2012).
Globally, Beaumont and Sohal (2014) in the United States of America ascertains that building and regenerating valuable resources and distinctive competencies can result to organizational growth in terms of market share, profits generated and customer loyalty. Similarly, Gilley and Rasheed (2013) in Australia contend that in an ever-changing environmental condition, a firm’s ability to change direction quickly and to reconfigure strategically is crucial to its success in achieving sustainable competitive advantage. In Singapore Mopeni,
Description
A Research Project Submitted in Partial Fulfilment of the Requirement for the Award of the Degree of Master of Business Administration (Strategic Management Option) of Kenyatta University
Keywords
Strategic, Management, Capabilities, Performance, Pharmaceutical, Companies, Nairobi City County, Kenya