Influence of Technological Capability on the Performance of Pharmaceutical Companies in Kenya
DOI:
https://doi.org/10.58425/ajt.v3i1.243Keywords:
Pharmaceutical companies, technological capability, performance.Abstract
Aim: The pharmaceutical companies operating in Kenya have not been spared by the environmental turbulence and increased competition since liberalization of the industry. The main objective of the study was to assess the effects of technological capability on the performance of pharmaceutical companies in Kenya.
Methods: The population comprised the 415 pharmaceutical companies that are operating in Kenya. The study used stratified random sampling with sample size of 103 respondents. The study targeted both manufacturers and distributors. Primary and secondary data was collected using a questionnaire covering the five variables and background information. The data was analysed using SPSS version 23.0, descriptive statistics was computed using mean, frequencies, percentages and inferential statistics to test the relationship between the study variables.
Results: The correlation analysis revealed that there was a positive and significant association between technological capability and firm performance (r = 0.685, p = 0.000). Regression of coefficients results revealed that technological capability and firm performance are positively and significantly related (β =0.603, p=0.000). This implies that a unit increase in technological capability would lead to increase in firm performance by 0.603 units.
Conclusion: Technological capability of a firm stands to be one of the main determinants of how well the organization performs in terms of efficiency and effectiveness.
Recommendations: Pharmaceutical companies should embrace information technology by bringing modern and automated means of production as well as information sharing platforms that create the uniqueness, efficiency and effectiveness of their firms.
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