Innovation Strategies and Competitive Advantage of Manufacturing Pharmaceutical Companies in Nairobi, Kenya

Abstract

The growing number of traditional and herbal medicinal products has increased competition for pharmaceutical companies too. About 70% of the population in Kenya relies on traditional medicine. This trend is worrying to the entire pharmaceutical industry especially those manufacturing pharmaceutical companies. It is a threat to their competitive advantage and long-term survival. The study examined the link between innovation strategies and competitive advantage among companies engaged in the manufacture of health care products. The design adopted was descriptive. The population comprised of 22 manufacturing pharmaceutical companies in Nairobi. The study adopted a census on all the 22 companies. Data for the study was sought by the use of questionnaires. The presentation of the findings was done using tables. The study established that (88.0%) change in competitive advantage of the studied manufacturing pharmaceutical companies is explained by their innovation strategies in place (process, product, technology and market innovation). The study concludes that innovation strategies significantly influence competitive advantage. As a recommendation, the management of all manufacturing pharmaceutical firms need to improve on their process, product and technology and market innovation in order to significantly influence competitive advantage of their companies. Policy makers including the ministry of health and the PPB of Kenya should create a conducive environment that encourage and support innovation among manufacturing pharmaceutical companies.