STRATEGIC PURCHASING AND PERFORMANCE OF PHARMACEUTICAL FIRMS IN NAIROBI CITY COUNTY, KENYA
Abstract
The pharmaceutical sector plays a crucial role in the healthcare system of Kenya, contributing significantly to public health and economic development. Despite the importance of the pharmaceutical industry, firms operating in Nairobi City County face significant challenges that hinder their overall performance. For instance, a study revealed that 40% of pharmaceutical firms reported inadequate inventory management practices, leading to stockouts and lost sales opportunities. Additionally, approximately 30% of these firms noted that regulatory compliance issues negatively impacted their operational efficiency. The general objective of the study was to assess the influence of strategic purchasing and performance of pharmaceutical firms in Nairobi City County, Kenya. Specifically, the study sought to assess the influence of Quality Assurance on performance of pharmaceutical firms in Nairobi City County, Kenya and to determine the influence of Stakeholder Involvement on performance of pharmaceutical firms in Nairobi City County, Kenya. The descriptive research design was employed. The study was conducted in Nairobi County since many of the pharmaceutical companies operate from that area. According to KAM (2023) there are 33 pharmaceutical companies registered companies operating in industrial area. The study targeted 198 management level employees at 33 pharmaceutical companies. The Yamane formula was adopted to calculate the study sample size. Therefore, the study sample size was 142 respondents. This study also used questionnaire to collect data relevant to this study. Quantitative data collected was analyzed using descriptive statistical techniques which are frequencies, mean, standard deviation. Inferential statistics which include Pearson correlation and the Regression Analysis Model was used to test the relationship between study variables. The significance of the model was tested at 5% level of significance. Data was analysed using Statistical Package for Social Sciences (SPSS) software. The study results were presented through use of tables and figures. The study concludes that quality assurance has a positive and significant effect on performance of pharmaceutical firms in Nairobi City County, Kenya. The study also concludes that stakeholder involvement has a positive and significant effect on performance of pharmaceutical firms in Nairobi City County, Kenya. Based on the findings, the study recommends that the management of pharmaceutical firms in Kenya should establish structured stakeholder engagement programs that facilitate regular communication and collaboration with key stakeholders, including customers, suppliers, regulators, and community members.
Key Words: Strategic Purchasing, Quality Assurance, Stakeholder Involvement, Pharmaceutical Firms in Nairobi City County, Kenya
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