Covid-19 Induced Supply Chain Disruption and Resilience of Pharmaceutical Firms in Kenya

Abstract

The research‟s objective was to examine the degree to which COVID-19 induced supply chain disruption affected the resilience of pharmaceutical companies in Kenya. Premised on the predictions of Disruptive Innovation Theory, Dynamic Capability Theory, and Contingency Theory, the research used Descriptive Cross-Sectional Study targeting fifty pharmaceutical businesses found in Nairobi County, Kenya. The units of research were, therefore, the 50 pharmaceutical firms in Nairobi while the units of analysis were 200 respondents, four from each firm. A research questionnaire was applied to bring together data, while data was analyzed by applying SPSS.The null hypothesis stating “There no significant influence of Covid19 Disruptions on Organizational Resilience” was not accepted because the p-values were all lower than 0.05. The findings imply that the Covid-19 Induced planning, sourcing, manufacturing, delivery, and returns Disruptions each had significant influence on Organizational Resilience of the Pharmaceutical companies in Kenya. Although previous studies have investigated similar phenomenon, there were still knowledge gaps. For instance, majority of such studies were conceptual in nature, with limited empirical investigations. The findings are consistent with theory, including Disruptive Innovation Theory, and Contingency Theory. The findings were, however, inconsistent with the postulates of Dynamic Capability Theory. This implies the need for further investigations to enhance theoretical precision. The findings are also crucial for policy makers. In this regard, there is need for policies to enhance supply chain resilience among organizations, public and private. This implies that policy makers should make deliberate effort to undertake policy analysis with a view to identifying policy gaps that may require enhancement so that organizations are better prepared for similar disruptions. Practitioners ought to anticipate disruptions and develop contingency strategies to counter the effects of potential supply chain disruptions in future. This may include strategies in Business Process Re-engineering (BPR), scenario analysis, risk management, among other strategies. Particularly for the pharmaceutical industry, there is need to re-evaluate the traditional supply chain models, to assess their sustainability. The current study has made meaningful contribution to knowledge. However, there are opportunities for further research due to the prevailing knowledge gaps. Although the current study established a strong negative correlation between Covid-19 induced supply chain disruption and resilience among pharmaceutical companies in Kenya, there is need to conduct similar studies in other cities outside Kenya due to disparities in operating and business environment that may confound the findings. Moreover, most studies on the Covid-19 subject are conceptual in approach hence the need for more empirical investigations to adduce further evidence. Moreover, there is need to conduct similar studies in service sectors due to inherent differences that may render the findings of the current study inapplicable.