Sustainable Supply Chain Practices and Organizational Performance of Pharmaceutical Manufacturers in Nairobi County

Abstract

This study examined the relation between sustainable supply chain practices on the organization performance of pharmaceutical manufacturers. Academic inquiry on sustainable practices has gained prominence with increased examination on the efficacy and reliability of economic transition into sustainable frontier from the present depletive and destructive industrial activities that are destroying the planet risking the survival of future generations. This study looked into the role of triple bottom line sustainable platform notably; environmental, social and economic sustainability within the pharmaceutical supply chain. The study sought to determine whether, environmental sustainable, social sustainable and economic sustainable supply chain practices have an impact on the organizational performance of pharmaceutical manufacturers. The study employed descriptive survey methodology with the target population composed of pharmaceutical manufacturing firms in Nairobi. The study utilized census sampling technique, drawn by the fact that only 40 firms are fully certified in undertaking production and distribution of pharmaceutical products in Nairobi region. A structured questionnaire, with a 5-point scale, was utilized as the tool for data collection. The tool was designed with a leading set of questionnaire items covering the three sections of triple bottom sustainability approach which are; environmental, social and economic sustainability. For each of the 40 pharmaceutical companies, a participant was selected for study drawn from a senior management position. The study established that triple bottom line sustainability factors including environmental, social and economic sustainable supply chain practices impacted on the organization performance of pharmaceutical manufacturers. Environmental sustainable practices accounted for variability and change on organization performance (R2 = 0.301, β1 = 0.730) which is an incremental parallel outcome. Similarly, social sustainable supply chain practices were found to account for changes (R2 = 0.431, β2 = 0.948) in organization performance output. Finally, the economic sustainable practices were found to account for variability and changes (R2 = 0.711, β3 = 1.074) on the organizational performance. The study concludes that triple bottom line factors for sustainability notably, environmental sustainable supply chain practices, social sustainable supply chain practices and economic sustainable supply chain practices account for significant quantitative changes in organization performance for pharmaceutical producers. The study recommends for increased investments in high-tech infrastructure across the entire supply chain of pharmaceutical sector. Such technology should be tailored to offer sustainable operational solutions notably; eliminate exhaust pollution, ensure carbon emission control, integrated closed loop system and expanded compatibility to diverse clean energy sources. The study proposes for introduction of incentives through government policy to boost adoption of clean and renewable sources for energy. Additionally, the study recommends enhanced corporate efforts towards coal causes that uplift the society such as enlightenment of public hygiene, environmental conservation and expanded access to life-saving medicines.