The role of competitive strategies in the relationship between knowledge management and performance of retail pharmaceutical firms in nairobi City County, Kenya

Abstract

Firms perform differently in the same industry with some achieving higher levels of performance than others which can be associated to the type of competitive strategies each adopts. The objective of the study was to establish the role of competitive strategies in the relationship between knowledge management and performance of retail pharmaceutical firms in Nairobi County, Kenya. The research was anchored on the Dynamic Capabilities Theory (DCT) and Knowledge-Based View theory. The study applied positivism philosophy and descriptive research design. The population of the study was all registered retail pharmaceutical firms in Nairobi County. The study sample comprised 116 retail pharmaceutical firms in Nairobi County, Kenya. Primary data was collected using semi-structured questionnaire. Data was analyzed using descriptive and inferential statistics. The results of the study showed that knowledge management significantly influences firm performance. The study further found that competitive strategies have significant and partial intervening influence in the relationship between knowledge management and firm performance. The findings in the study concur with theoretical argument from dynamic capabilities theory which presented knowledge management as a fundamental strategic initiative that guarantees firms competitive edge and performance. The overall results shows that knowledge management implemented by management in retail pharmaceutical firms should be aligned with the competitive strategies for retail pharmaceutical firms to register higher performance. The study was limited on the fact that it was based on the existence of a linear relationship where there is a possibility of the study variables having a different form of relationship like a curvilinear relationship. Future studies could explore relevant factors that were not discussed in this study like the role of technology and innovations that could further influence retail pharmaceutical performance.