HIGGINS MODEL DIMENSIONS AND PERFORMANCE OF MULTINATIONAL PHARMACEUTICAL FIRMS IN KENYA

James Macharia Kumbura, Dr. Paul Kariuki

Abstract


The pharmaceutical industry in Kenya is experiencing exponential growth hence it presents opportunities for distribution of pharmaceutical products and services. As of 2024, market value of pharmaceutical industry in Kenya is about USD$525.40 million and its expected compound annual growth rate (CAGR) is 8%. Despite realisation on the importance of strategy implementation, it is still greatly overshadowed by a focus on the strategy formulation process. Literature available on strategy implementation is very scarce and especially in the pharmaceutical industry. This study, therefore, was poised to explore and determine the effect of two strategic implementation dimensions of Higgins model (i.e., Staff capacity building, and Re-Sources) on performance of multinational pharmaceutical firms in Kenya. The main focus of this study was to establish the effect of Higgins model dimensions on performance of multinational pharmaceutical firms in Kenya. The study was guided by the following specific objectives; to establish the effect of staff capacity building on performance of multinational pharmaceutical firms in Kenya and to assess the effect of resources allocation on performance of multinational pharmaceutical firms in Kenya. This study was supported by the Human capital theory and resource-based view. Cross-sectional survey research design was adopted. The unit of analysis was selected from 11 pharmaceutical MNCs in Kenya. The management employees formed the unit of observation. Therefore, the target population included 55 management employees from the select 11 multinational pharmaceutical firms in Kenya. Census sampling was used on the 55 respondents. Semi-structured questionnaire was adopted for data collection. To test for validity and reliability of data collection instrument, 10 questionnaires were pilot tested. SPSS software version 28 was used for data analysis. The analysed data was presented in the form of frequency distribution tables, pie charts and bar graphs where appropriate. Pearson R correlation was used to measure strength and the direction of linear relationship between variables. Multiple regression model was fitted to the data to determine how the independent variables affect the dependent variable. Results revealed that Staff capacity building ensures a skilled workforce adept at navigating dynamic pharmaceutical landscapes in Kenya. Strategic resource allocation optimizes financial and human capital, enabling swift responses to market demands. The study concludes that staff capacity building and resource allocation all have a positive significant effect on performance of multinational pharmaceutical firms in Kenya. In recommendations, Multinational pharmaceutical firms should prioritize staff capacity building as this will foster a skilled workforce adaptable to industry changes. Implementing innovation and optimal use of resources thus enhancing overall performance and competitiveness in the global market.

Key Words: Staff Capacity Building, Higgins Model Dimensions, Staff Capacity Building, Resources Allocation, Performance of Multinational Pharmaceutical Firms


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