Influence of Strategic Management Practices on Firm Performance of Manufacturing Pharmaceutical Companies in Kenya

Abstract

The critical importance of understanding how strategic management processes influence the financial performance of manufacturing pharmaceutical firms in Kenya motivated the study. The highly competitive pharmaceutical sector, effective development and execution of strategic plans playa crucial role in achieving financial success. Therefore, the study set out to investigate the intricate correlation between strategic management procedures and financial performance, offering valuable insights for industry professionals and policymakers alike. To address these objectives a descriptive and cross-sectional research methodology. This approach facilitated a comprehensive understanding of the variables under examination, aligning with the study’s overall objectives. Data collection involved the distribution of a semi-structured questionnaire via an online platform using Google forms. The survey encompassed 33 participants from the pharmaceutical manufacturing sector in Kenya. Various statistical analyses, including correlation and regression, were applied to evaluate the influence of strategy formulation, strategy execution, and control strategies on financial performance. The study's findings revealed substantial links between strategic management methods and financial performance. Strategy creation and strategy implementation, in particular, were proven to have a significant and beneficial impact on financial performance. However, while control measures had a positive impact, these effects were not statistically significant. This shows that, while control mechanisms are valuable, their implementation may be improved. Based on these findings, the study made recommendations aimed at improving strategic management procedures in Kenya's pharmaceutical industry. It emphasized the significance of enhancing employee participation in strategy building through improved teamwork and consultation. The survey also emphasized the need of inspiring and supporting employees during the execution of strategic projects. Additionally, it advocated for the reinforcement of control strategies and feedback mechanisms, underscoring the importance of robust system s capable of identifying and addressing obstacles in the strategic management process.