DYNAMIC CAPABILITIES AND PERFORMANCE OF PHARMACEUTICAL FIRMS IN NAIROBI COUNTY

Abstract

This study determined the influence of dynamic capabilities and performance of pharmaceutical firms in Nairobi County. Descriptive research design was employed in this study. The study targeted 165 respondents from 33 pharmaceutical firms in Nairobi County registered by the Pharmacy and Poisons Board as at 1st January 2023. The sampling frame comprised of customer service representatives, operations managers, procurement managers, marketing managers and production managers. The study sample size was 117 respondents using stratified random sampling technique. Primary data was collected using a well-designed semi-questionnaire. Quantitative data was analyzed using descriptive and inferential statistics using SPSS Version 26.0. Descriptive analysis and inferential analysis were used at a significance level of 0.05. Descriptive analysis included; frequencies, Mean, standard deviation and percentage while inferential analysis involved correlation analysis and linear regression analysis. Prior to conducting multiple linear regressions, the study ensured that the assumptions of linear regression were met. The data was presented in form of tables and models. Using Pearson correlation coefficient, the findings established a direct and positive relationship between performance of pharmaceutical firms and independent variables; marketing capability, technological capability, managerial capability and resilience capability. Further inference using multiple linear regressions showed a significant proportionate contribution of dynamic capabilities towards performance of pharmaceutical firms. This study observed that marketing capability showed the greatest positive significant predictive power performance of pharmaceutical firms in Nairobi County while technological capability had least positive significant predictive power. In this regard, the study recommended that table banking groups should as well pursue viable and economical external sources of funding to boost their capital base and support the group investment activities. The study recommended that pharmaceutical firms ought to develop marketing capabilities in key functional areas. Within the firm, marketing procedures necessitate a number of unique competencies that enable the firm to carry out the actions required to move its products or services through the value chain. Further, the study recommended that 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. Key Words: Marketing, Technology, Management, Resilience, Dynamic Capabilities, Pharmaceutical Firms CITATION : Masinde, M. N., Otinga, H. & Miroga, J. (2023). Dynamic capabilities and performance of pharmaceutical firms in Nairobi County, Kenya. The Strategic Journal of Business & Change Management, 10 (3), 499 – 522.