RELATIONSHIP BETWEEN ORGANIZATIONAL STRUCTURE AND PERFORMANCE OF PHARMACEUTICAL MANUFACTURING FIRMS IN KENYA

Abstract

There is a growing interest among scholars in strategic management on the need to establish performance measures of pharmaceutical manufacturing firms. The purpose of the study was to assess the relationship between organizational structure and Performance of Pharmaceutical Manufacturing firms in Kenya. The findings of this study are valuable to the managers of the Pharmaceutical manufacturing sector, researchers and academicians in providing knowledge on organizational structure implementation on firm performance especially in the context of developing economies. The research used descriptive survey design. Data collected was both qualitative and quantitative. The target population comprised of managers in all the 19 Pharmaceutical manufacturing firms listed by the Pharmaceutical Society of Kenya (PSK, 2016). Judgmental sampling technique was used to determine the sample size. A sample of 209 was selected. This included one manager from each department who was identified as being directly related to organizational structure implementation. 19 firms and 209 mangers formed the sample size. The researcher used questionnaires to collect data. Once data was collected, it was coded and analyzed using SPSS version 21 where multiple regression was used to show the relationship between independent and dependent variables of the study. The findings of the study revealed that company processes that are structured well have a direct influence on strategy implementation.