Anti-counterfeiting strategies adopted by pharmaceutical manufacturing firms in Kenya and organizational performance

Abstract

The study general objective was to investigate the anti-counterfeiting strategies adopted by pharmaceutical manufacturing firms in Kenya and organizational performance. The objectives of the study were; to determine anti-counterfeiting strategies adopted by pharmaceutical manufacturers in Kenya and to establish the effect of anti-counterfeit strategies on performance of pharmaceutical manufacturers in Kenya. The research employed a descriptive research design. The study was carried out in 23 companies that were listed as pharmaceutical manufacturing firms in Kenya by the Kenya Manufacturers and exporters’ 2014 directory, 10th edition. Since the population was relatively small, a census survey was employed. Both primary and secondary data was collected. A semi-structured questionnaire was used to collect primary data. The quantitative data obtained were first checked for errors, completeness then coded and entered in SPSS program before analysis. The data was analyzed using descriptive statistics such as frequency, percentages, mean and standard deviation. Content analysis was used in processing of qualitative data and results presented in prose form. The study also found that anti-counterfeit strategies had led to improved organization performance this was through, increased brand loyalty to a great extent. The study further found that counterfeits affected innovation to a great extent and that counterfeits caused loss of goodwill of the brand to a great extent. The study further concludes that taking all other independent variables at zero, a unit increase in embossed optical films will lead to an increase in the scores of the organizational performance. A unit increase in high resolution printing will lead to an increase in organizational performance. On the other hand, a unit increase in taggants will lead to an increase in the scores of the organizational performance; and a unit increase in Radio frequency identification devices (RFID) will lead to an increase in the scores of the organizational performance. This infers that embossed optical films influences the organizational performance most followed by taggants, high resolution printing and then Radio frequency identification devices (RFID). The study also established a significant relationship between organizational performance and the independent variables; embossed optical films, high resolution printing, taggants and Radio frequency identification devices (RFID). From the above conclusions the study recommend the companies should clearly understand the effect of counterfeit drugs and the consequences of such drugs to their business and to the patient who end up consuming the counterfeited drugs. Further all cases of counterfeiting should be reported to regulatory authorities for action.