Entrepreneurial Orientation And Performance Of Pharmaceutical Firms In Nairobi City County, Kenya

Abstract

The purpose of this study was to establish the influence of Entrepreneurial Orientation (OE) on the performance of pharmaceutical firms in Nairobi. Specifically, the study was to establish the influence of innovativeness and risk-taking on the performance of Pharmaceutical firms in Nairobi. This study adopted a descriptive survey. The study targeted population of registered pharmaceutical manufacturers, registered pharmaceutical distributors, registered wholesalers and registered retailers. A total sample of 139 was selected comprising about 10% of each of the respective group. Self administered questionnaires were developed in line with the objectives of the study. Piloting was undertaken in order to determine the effectiveness and validity of the questionnaire. The Statistical Package for Social Sciences (SPSS) software version 20.0 was used to carry data analysis. The study produced both descriptive and inferential statistics. The findings revealed that innovativeness and risk taking were satisfactory variables in explaining performance of pharmaceutical firms. This was supported by coefficient of determination also known as the R square of 35.6%. Result findings revealed that that risk taking was positively related with performance of pharmaceutical firms (r= .496, p=0.000). Regression of coefficients results showed that innovativeness and performance of pharmaceutical firms were positively and significantly related. Result findings further revealed that that innovativeness was positively related with performance of pharmaceutical firms (r= .514, p=0.000). Regression of coefficients results also showed that risk taking and performance of pharmaceutical firms were positively and significantly related. The study concluded that innovativeness and risk taking in entrepreneurship affects the performance of pharmaceutical firms. The study further recommends intensive research and development in the pharmaceutical industry to meet the emerging demands of customers