Critical Success Factors and Competitive Advantage of Pharmaceutical Distributors in Nairobi City County, Kenya

Abstract

The environment has grown more interdependent while simultaneously becoming more unpredictable. Business strategies that help organizations compete successfully in the market are seen as critical success factors since they are essential for the organization's long-term competitiveness. In this study, the causal link between the important success elements and the underlying causes of pharmaceutical distributors' competitiveness is examined. The research aimed to identify the critical factors that aide the competitive advantage for pharmaceutical distributors in Nairobi County. A descriptive cross-sectional survey was used, and data were collected from 33 companies using a structured questionnaire, and analyzed using both descriptive and inferential statistics. The findings indicate a substantial association between CSFs and competitive advantage (R=0.785; R2=0.616; F=0.537, and p=0.000<0.05. Based on the findings of this study, policymakers and practitioners should consider the identified critical success factors as key drivers for enhancing competitive advantage in the industry. With the study showing that these variables can predict up to 78.5% of the variability in competitive advantage, it is vital for pharmaceutical enterprises to prioritize and invest in optimizing these aspects of their operations. Moreover, the 21.5% of unexplained variability indicates the presence of other influential factors not considered in the study. Thus, further research should be encouraged to explore these additional determinants to gain a more comprehensive understanding of competitive advantage in the pharmaceutical distribution sector. Policymakers can facilitate an environment that encourages research collaboration and knowledge-sharing to promote industry-wide improvements. By integrating these findings into policy frameworks and organizational practices, pharmaceutical distributors can strategically align their resources and efforts to gain a competitive edge in the market and ultimately enhance overall performance and success.