Quality Management Practices and Firm Performance of Selected Pharmaceutical Firms in Nairobi City County, Kenya

Abstract

Organizational performance remains a significant concern for pharmaceutical manufacturing firms seeking to enhance profitability, market share, operational efficiency, and competitive advantage. This study examined the effect of quality management practices on the organizational performance of selected pharmaceutical manufacturing firms in Nairobi City County, Kenya. Specifically, the study assessed the effects of management commitment, strategic planning, and continuous improvement on organizational performance. The study was anchored on the Quality Motivational Model, Juran’s principles, the Resource-Based View, and the Balanced Scorecard. A descriptive and explanatory research design was adopted, targeting 100 respondents drawn from different managerial levels within the selected pharmaceutical manufacturing firms. A census approach was employed, and primary data were collected using structured questionnaires. Instrument validity was established through expert review, while reliability was assessed using Cronbach’s alpha, with a minimum acceptable coefficient of 0.70. Of the 100 questionnaires administered, 80 were completed and returned, yielding a response rate of 80%. Data were analyzed using SPSS Version 21, employing Pearson correlation and multiple linear regression analyses. The findings established significant positive correlations between organizational performance and management commitment (r = 0.681, p < 0.001), strategic planning (r = 0.724, p < 0.001), and continuous improvement (r = 0.759, p < 0.001). The regression model accounted for 67.4% of the variance in organizational performance (R² = 0.674) and was statistically significant (F(3, 76) = 52.56, p < 0.001). Management commitment (β = 0.291, p < 0.001), strategic planning (β = 0.322, p = 0.001), and continuous improvement (β = 0.381, p < 0.001) each demonstrated a significant positive effect on organizational performance, with continuous improvement recording the strongest contribution. The study concluded that quality management practices significantly contributed to organizational performance among the selected pharmaceutical manufacturing firms. It recommended strengthening management commitment, institutionalizing strategic planning, and prioritizing continuous improvement initiatives to enhance operational efficiency, organizational performance, and sustainable competitiveness.

Keywords: Quality, Management Practices, Firm Performance, Pharmaceutical Firms, Nairobi City County, Kenya