Supply Chain Integration and Operational Performance of Pharmaceutical Manufacturers in Nairobi

Abstract

The research was carried out on SCI and operational performance in pharmaceutical manufacturers in Nairobi. Establishing the extent of implementation of SCI in pharmaceutical manufacturers in Nairobi and ascertaining the effect of SCI on operational performance (OP) in pharmaceutical manufacturers in Nairobi were the two study objectives. The resource based view theory and Transactional cost economics theories guided this study. Descriptive research design was adopted and questionnaires were used as data collection tools distributed via email. Thirty-eight respondents made up the study population, which were all the pharmaceutical manufacturers firms in Nairobi. Multiple regression analysis and descriptive statistics was adopted in the data analysis. Moderately, SCI integration had been adopted in pharmaceutical manufacturers in Nairobi and besides a positive relationship between implementation of SCI and operational performance in pharmaceutical manufacturers in Nairobi was indicated in the results. Besides the findings further indicated that seventy-one percent of cost, seventy-two percent of quality and sixty-seven percent of timeliness as operational performance measures was affected by adoption of SCI function in their operations. The overall variables and the model adopted in the research was good since the p-value of 0.000 was hence statistically significant since it is below 5%. The demerits of this research were that the study was solely based in pharmaceutical manufacturers in Nairobi. There is need for a holistic study of all pharmaceutical manufacturers in Kenya. A wider research was to be done on SCI and SC performance as a whole and not only OP. There is need for future studies being carried out on the effect of SCI on OP in other sectors other than pharmaceutical manufacturers. To achieve better performance, future studies need to look at other variables other than those included in the study.