STRATEGIC MANAGEMENT CAPABILITIES AND PERFORMANCE OF PHARMACEUTICAL COMPANIES IN NAIROBI CITY COUNTY, KENYA
Abstract
This study investigated how strategic management capabilities influence performance of pharmaceutical companies in Nairobi County, Kenya. It specifically examined the influence of technological, leadership, employee capabilities and process design on the pharmaceutical companies’ performance. Resource based view theory, dynamic capability theory, diffusion of innovation theory and transformative leadership theory guided the study. Descriptive research design was adopted in this study research process. The unit of analysis was 27 pharmaceutical companies operating in Nairobi County. The observation unit was 324 employees who include; customer service representatives, operations managers, procurement managers, marketing managers and production managers. A questionnaire was used in gathering primary data. The study disclosed that technology capability, leadership capability, employee capability and product design capability had a positive and significant influence on pharmaceutical companies’ organizational performance in Nairobi County, Kenya. The study concluded that technology capability enables organization to gain the ability to streamline repetitive processes with automation and focus on their core competence (providing more attentive customer service or building new client relationships. Leadership capability promotes a culture of cohesion and collaboration within the workplace. Employee capability ensures professional development and training activities funded by the organization are productive, goal-oriented and cost-effective. Pharmaceutical companies possess efficient product design implementation enhancing their performance by making services available and ease to their client and attracting more consumers. The study recommended that the organization should constantly evaluate the maintenance strategies, create an environment for technology innovation and be keen on importance of new technology for the pharmaceutical companies’ effective and efficient operation. 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 communicate their expectations clearly to the employees. The pharmaceutical companies need to have well understood parameters against which new service and product ideas are screened.
Key Words: Technological, Leadership, Employee Capabilities, Process Design
CITATION: Mwangi, T., & Kiiru, D. (2021). Strategic management capabilities and performance of pharmaceutical companies in Nairobi City County, Kenya. The Strategic Journal of Business & Change Management, 8 (4), 463 – 478.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i4.2116
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