The Impact Of Technology Adoption On The Pharmaceutical Industry’S Distribution Channels In Nairobi County, Kenya
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Date
2016Author
Munyasi, Peter Makali
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
The Pharmaceutical industry in Kenya has consistently registered a double digit growth
in recent past years. However, adaption of technology at the distribution channel level
has been at different rates affecting the cost of distribution and service level delivery
thereby impacting drug accessibility and overall industry growth. To gain in depth
understanding, this study set up an objective of quantifying the impact of adoption of
technology by the pharmaceutical industry’s distribution channels in Nairobi County. The
study focus was on the impact of adoption of technology on; the cost of distribution, the
efficiency in service delivery and the growth of the industry. Relevant theoretical and
empirical literatures were reviewed to assist in the formulation of the conceptual
framework. Analyses of previous outcomes of similar studies were carried out to provide
comparative information. The study used cross-sectional research design with a
questionnaire as the tool for data collection. The study population included all the 2,030
pharmaceutical companies in Nairobi County and used stratified random sampling
technique to identify the respondents. A 10% sample was selected from each stratum.
The responses were analyzed through descriptive statistics and Pearson’s correlation test.
The study results pointed out that technology adoption had a great impact on the cost of
distribution with the mean being 3.61 and a moderate negative correlation of -0.425;
technology adoption had an impact on service delivery efficiency to a great extent with a
mean of 3.70 and a significant positive correlation of 0.605; and finally technology
adoption had an effect on distribution channel growth to a great extent of 3.77 mean and
a moderate positive correlation of 0.445. From the study results, it was concluded that
pharmaceutical companies that embraced new technologies had a competitive edge in
sourcing and distribution of drugs due to the reduction in the costs associated with
transportation, coordination and storage of products. These companies experienced a
reduction in delivery turnaround timelines, reduction in data entry errors and enhanced
accuracy in reporting and communication. On the industry growth, adoption of new
technologies enhanced strong customer loyalty engagements and enabled quicker
penetration of new markets. The outcome of this study also opened doors for regulators
to identify gaps and formulate new operational guidelines
Publisher
University Of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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