Influence of Strategy Implementation On Organizational Performance of Pharmaceutical Manufacturing Companies in Nairobi City County

Abstract

Strategy implementation is an important component of organizational performance, playing a key role in achieving desired outcomes. However, the execution of strategies is often complex and fraught with challenges, which can hinder progress. Organizations formulate strategic initiatives through detailed corporate plans, yet their implementation frequently encounters distinct phases and obstacles that must be addressed to ensure success. The purpose of the study was to determine the influence of strategy implementation on the performance of pharmaceutical manufacturing companies in Nairobi County from the perspective of the drivers of strategy implementation. The specific objectives of the study were to establish: the influence of organizational structure, the influence of organizational resources, the influence of strategic communication, and the influence of strategic leadership on the performance of pharmaceutical manufacturing companies in Nairobi County. The study was anchored on three major theories; Fishbone Model, Resource Based View Theory and Transformational Leadership Theory. The study applied the descriptive research design. The unit of analysis for the study was 71 pharmaceutical manufacturing companies in Nairobi County, whereas the unit of observation was 288 managers of the pharmaceutical manufacturing companies in Nairobi County. The study utilized both the stratified sampling method and the Taro Yamane formula to come up with a representative sample size of 132 participants who were distributed among the various departments (strata). Questionnaires were the instruments for the study, where data was gathered through the physical administration of the questionnaires. Data collected was analyzed through both descriptive and inferential analysis. Descriptive analysis was involved in the determination of mean, frequency, percentages, and standard deviation. The inferential analysis helped in hypothesis testing through regression and correlation analysis at a 0.05 significance level. Results emerging from the study were presented in tables whereas interpretations and discussions were in narratives. Results revealed a β of .736 and a p-value of 0.001, between organizational structure and the performance of pharmaceutical manufacturing companies in Nairobi County, also, findings revealed a β of .855 and a p-value of 0.001 organizational resources and the performance of pharmaceutical manufacturing companies in Nairobi County. In addition, Findings revealed a β of .958 and a p-value of 0.001, between strategic leadership and the performance of pharmaceutical manufacturing companies in Nairobi County. Lastly, Results revealed a β of .861 and a p-value of 0.001 between strategic communication and the performance of pharmaceutical manufacturing companies in Nairobi County. The study concluded that organizational structure, organizational resources, strategic leadership and strategic communication had a positive and significant influence on the performance of pharmaceutical manufacturing companies in Nairobi County. The study recommended optimizing organizational structure by clarifying reporting lines and promoting autonomy among managers to foster rapid decision-making and adaptability, leveraging organizational resources strategically, including financial, talent, and technology resources for innovation and competitiveness, investing in strategic leadership development to ensure effective succession planning and inspiring employees to achieve organizational goals and lastly, establishing effective strategic communication channels and fostering a culture of continuous improvement strengthening teamwork, collaboration, and stakeholder engagement, ultimately driving organizational performance and success in the dynamic market environment.