DETERMINANTS OF COMPETITIVE ADVANTAGE AMONG MANUFACTURING PHARMACEUTICAL FIRMS IN KENYA
Abstract
There is high competition in the pharmaceutical industry in Kenya. Different firms are struggling to remain on top of the game as competition continues to grow in the industry. To develop competitive advantage is at the core of any business. The pharmaceutical industry in Kenya is facing stiff competition from MNC’S and companies that import drugs from Asia. The pharmaceutical manufacturing companies in Kenya face many challenges that make it difficult to compete effectively with the MNC’s due to government regulations and inability to develop novel products. This motivated the researcher to investigate determinants of competitive advantage among pharmaceutical manufacturers in Kenya. The study sought find out to what extent organization’s structure determines competitive advantage among pharmaceutical manufacturers in Kenya, to find out to what extent organization’s culture determines competitive advantage among pharmaceutical manufacturing firms in Kenya, to investigate how innovation is a determinant of competitive advantage among pharmaceutical manufactures in Kenya and finally to examine the role of organizational resources as determinant for competitive advantage among manufacturing companies in Nairobi. The researcher used descriptive study. Primary data was obtained by use of questionnaires while secondary data was obtained from firms’ financial reports. A population comprising of 16 pharmaceutical manufacturing companies ‘census rather than sampling method was used. The unit of analysis was 16 and three questionnaires were given to each unit, which represented the top management, the middle managers and the supervisors, therefore the unit of observation was 48. According to descriptive and inferential statistics done, the findings of the study revealed that there was a positive relationship between the independent and the dependent variables. Organizational culture was found to determine competitive advantage. Organization’s structure also determined competitive advantage. Competitive advantage was also affected by innovation positively and increase in organizations resources also was seen to increase competitive advantage..
Key Words: Organization’s Structure, Culture, Innovation, Organizational Resources, Competitive Advantage
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.917
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