Covid-19 Disruptions and Resilience of Pharmaceutical Supply Chains in Nairobi County

Abstract

This study delved into the crucial realm of supply chains, recognizing their pivotal role in facilitating the processes of procurement, transportation, and delivery of essential inputs and outputs for businesses. Specifically, it aimed to investigate how disruptions from COVID-19 impacted the resilience of pharmaceutical supply chains within Nairobi County. The study pursued two specific objectives: firstly, to comprehend the extent of COVID-19's influence on supply chains, and secondly, to evaluate the resilience exhibited by pharmaceutical supply chains in countering the effects of the pandemic. In this endeavor, the study drew upon three pertinent theories, resource-based view, stakeholder theory and market-based theory, as frameworks for its exploration. The study followed a descriptive research design to carry out the analysis, employing a census approach to collect data from all 71 licensed pharmaceutical firms within the study's scope. Data was meticulously gathered from the supply chain officers of these firms, and questionnaires served as the data collection instrument which collected panel data for the study. The findings revealed significant positive correlations between supply chain risk management and resilience as well as moderate positive correlations for collaboration and communication, while pro-activeness and technology/innovation showed no significant relationships with supply chain resilience. The regression analysis yielded an R-squared value of 0.611, indicating that 61.1% of supply chain resilience variance was explained by changes in the predictor variables, emphasizing the model's significance. Supply chain collaboration and communication, along with risk management, significantly contributed to resilience, while pro-activeness and technology and innovation had no substantial influence, emphasizing the primacy of collaboration and risk management in bolstering supply chain resilience for pharmaceutical firms in Nairobi County during and after the pandemic. The study recommended that policymakers and pharmaceutical firms in Nairobi County should prioritize the development of robust collaboration, communication and risk management practices within supply chains. This includes fostering partnerships, investing in technology for real-time coordination, and comprehensive risk assessment and mitigation. To enhance resilience against disruptions like COVID-19, a multifaceted approach should be adopted, going beyond technological innovation and pro- activeness. Firms should integrate pro-activeness and technology into a comprehensive strategy that encourages innovation, proactive decision-making, and efficient communication while recognizing their indirect contributions to overall supply chain efficiency and resilience.