DETERMINANTS OF COMPETITIVENESS OF PHARMACEUTICAL MANUFACTURERS IN KENYA: A CASE OF AUTOSTERILE EAST AFRICA, KENYA

Abstract

This study investigated the determinants of competitiveness of pharmaceutical manufacturers in Kenya: a case of Autosterile East Africa, Kenya. The specific objectives were to examine how economic growth, management efficiency, business environment efficiency and business facility infrastructure influence competitiveness of locally manufactured goods in Autosterile East Africa, Kenya. This study used descriptive survey design. This study used census sampling to involve 69 respondents; 8 top level employees, 22 middle level employees and 39 lower level employees in Autosterile East Africa. Questionnaires used in the survey formed the primary data and was analyzed by use of Statistical Packages for Social Science version 25. Multiple regression analysis was done to test the relationship between the independent and dependent variables. The study findings found out that economic growth, management efficiency, business environment efficiency and business facility infrastructure all have a positive relationship with competitiveness of locally manufactured goods. Business environment efficiency was the most significant determinant of competitiveness of locally manufactured goods. From the findings, it was highlighted that a large number of respondents agreed that the GDP has influenced the competition among our competitors a mean of 1.23 and a standard deviation 0.12. A large number of respondents agreed that organization structure of firms dictates its competitive advantage over other firms as shown by a mean of 1.22 and a standard deviation 0.15. A majority agreed that demand for goods and services influences competition of goods and services as shown by a mean of 1.58 and a standard deviation 0.29 while a large number agreed that political stability has an impact in competition among firms as shown by a mean of 1.68 and a standard deviation 0.64. The government of Kenya need to boost the Economic Growth in order to enhance the competitiveness of Locally Manufactured Goods. This can be done by providing subsidies to business owners and fund the SMEs in starting up business. The locally manufactured goods firms should enhance their management efficiency so as to better their competitiveness of their locally manufactured goods. This can be done by the firm’s management developing leadership structures that are efficient.