Business Strategic Initiatives and Organizational Performance of Import Pharmaceutical Companies in Kenya
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Date
2025-08
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Kenyatta University
Abstract
Kenya relies heavily on imported pharmaceuticals, which account for 70% of its
healthcare market. The performance of import pharmaceutical companies is therefore
vital to
nationalhealth outcomes. These companies face challenges related to
profitability, market share, customer retention, and inventory turnover. This study
examined the influence of business strategic initiatives on organizational performance of
import pharmaceutical companies in Kenya , focusing on pricing, debt collection,
employee engagement, and strategic alliance initiatives. The study applied the Balanced
Scorecard, Resource Dependency Theory, Cash Conversion Cycle Theory, and
Resource-Based View. Using a descriptive research design, data was collected via
structured questionnaire from 296 employees selected from 125 registered import
pharmaceutical companies. The target population was 6,356 respondents. A pilot study
involving 38 respondents, confirmed content validity which was 0.8. Reliability was
0.81, computed using Cronbach’s alpha method with the aid of statistical package for
social sciences. Data was analyzed using descriptive and inferential statistics at a 95%
confidence level. Results showed that the four initiatives positively correlated with
organizational performance of import pharmaceutical companies in Kenya, with strategic
alliance initiatives (r = 0.790) and debt collection initiatives (r = 0.748) showing the
strongest effects, followed by employee engagement initiatives (r = 0.676) and pricing
initiatives (r = 0.600). Regression analysis confirmed these relationships, though pricing
initiatives had an insignificant effect. In conclusion, the study found that strategic
alliance initiatives provided the greatest boost to organizational performance of import
pharmaceutical companies, while effective debt collection initiatives played a key role in
maintaining financial stability. However, pricing and employee engagement initiatives
needed to be carefully aligned with customer and workforce expectations, as poor
implementation risked negative impacts on organizational performance. The study`s
recommendations included adopting value-based pricing, enhancing debt recovery
through digital tools, aligning engagement initiatives with workforce needs, and
strengthening strategic partnerships. The study adhered to ethical standards and offers
valuable insights for policymakers and industry stakeholders, supporting sustainable
growth in Kenya’s pharmaceutical sector and guiding future research on tailored
strategic initiatives.
Description
A Research Project Submitted to the School of Business Economics and Tourism in Partial Fulfillment of the Requirements for the Award of Master’s Degree In
Business Administration (Strategic Management)of Kenyatta University August 2025
Supervisor
Kipkorir Sitienei