THE ROLE OF COMPETITIVE STRATEGIES IN THE RELATIONSHIP BETWEEN KNOWLEDGE MANAGEMENT AND PERFORMANCE OF RETAIL PHARMACEUTICAL FIRMS IN NAIROBI CITY COUNTY, KENYA

  • Jesse Kangethe Mukuria
  • Zachary B Awino
  • Kennedy Ogollah
  • James Njihia

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.
Key words: Knowledge Management, Competitive Strategies, Firm Performance, Retail
Pharmaceuticals

Published
2022-06-08