Key Account Management Orientation and Organizational Structure in the Pharmaceutical Industry in Kenya

Abstract

The study sought to determine the effect of Key Account Management Orientation and organization structure of Kenya’s Pharmaceutical Industry. The research used a descriptive research design to achieve the objective. For this study, the population included 38 licensed pharmaceutical firms operating in Nairobi, Kenya. This study utilized primary data in the collection of data. Questionnaire method was suitable for collecting and it contained closed ended questions. The questionnaires were administered to either Head of customer care or relationship manager or an equivalent person at the firm. The data collected was later scrutinized through descriptive statistics and inferential statistics. The analysis outcome revealed that KAMO and organization structure had a positive relationship as exhibited by the correlation coefficient of 0.689. The model summary indicated that R-square was 0.475. This means that 47.5% of the variation. In organization structure was due to key account management orientation. This results also imply that 52.5% of the variation in organization structure was either due to error or other factors that were not investigated by the model. The level of significance for the model is 0.001. This value is less than p value 0.05. This connotes to the importance of the model in terms of statistics to predict organization structure based on key account management orientation. Key account management orientation had a beta value of 0.376. This implied that for every unit increase in KAMO, organization structure went up by a value of 0.376. The study recommends that the pharmaceutical industry in Kenya should practice key account management orientation in order to enhance their organization structure since KAMO was found to have an affirmative impact on the industry corporate structure. The research also recommends that the industry maps out specifically what aspects of KAMO are relevant to their industry and invest heavily into those aspects so as to see tangible improvement in their organization structure. ..