RELATIONSHIP BETWEEN CRISIS MANAGEMENT PRACTICES AND PERFORMANCE OF PHARMACEUTICAL MANUFACTURING COMPANIES IN KENYA; A SURVEY OF SELECTED COMPANIES IN NAIROBI
Abstract
The purpose of this study was to evaluate the relationship between Crisis-Management (CM) and the pharmaceutical manufacturing firms’ performance. The research used descriptive survey design. The target population was 44 respondents. A fact-based conclusion was made using both secondary and primary research. Questionnaires were used to obtain primary data. Data analysis was done through SPSS Version 22.0. The study recommended that to effectively detect crisis, pharmaceutical firms should have in place a team to analyse crisis before they happen. To effectively prevent crisis from happening, they should have clear plans on how to come out of crisis. The companies should have improved capacity and well-coordinated crisis management activities by regularly training and equipping staff with necessary equipment’s required to respond to crisis on time. The firms should ensure that the communication channels used to communicate crisis reaches many people. Suggestion for further study was recommended to identify other crisis management practices which can improve performance of pharmaceutical manufacturing companies. The study concluded that pharmaceutical company’s management did not take time to analyze the crisis in the organization. Pharmaceutical companies lacked effective monitoring mechanisms. There was regular assessment by pharmaceutical companies to detect crisis. There was no proper planning to prevent crisis from happening. There were no proper policies in place to enable pharmaceutical firms deal with crisis. There were no effective quality control measures in place to prevent crisis from occurring. Employees of pharmaceutical firms were not well equipped with skills that could enable them prevent crisis from happening. Pharmaceutical firms had put in place physical system to handle crisis. There was regular audit on crisis management activities. Crisis containment activities were not well coordinated. There was no proper evaluation during crisis. Many pharmaceutical firms lacked capacity to handle crisis. There were no proper measures to prevent income loss in the company during crisis. Pharmaceutical firms had invested in proper monitoring activities which enabled them monitor crisis. The communication channels used by pharmaceutical firms were not effective in communicating crisis. There was no effective communication between customers and pharmaceutical firms; this affected the ability to handle crisis on time. Further study was necessary to identify more crisis management practices.
Key Words: Crisis Detection, Crisis Prevention, Crisis Containment, Business Communication
CITATION: Mukuria, M., & Thiong’o, S. (2020). Relationship between crisis management practices and performance of pharmaceutical manufacturing companies in Kenya; A survey of selected companies in Nairobi. The Strategic Journal of Business & Change Management, 7 (4), 846 – 862.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1828
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