MBA PROJECT
COVID-19
DISRUPTIONS
AND
RESILIENCE
OF
PHARMACEUTICAL SUPPLY CHAINS IN NAIROBI COUNTY
BY
EMMANUEL KILONZO KIOKO
A Research Project Report Submitted In Partial Fulfilment Of The Requirements For The
Degree Of Master Of Business Administration Of The Faculty Of Business And
Management Sciences, University Of Nairobi
NOVEMBER, 2023
DECLARATION
Signature……
…………………………………………………….
Date…29/11/23 ................................... NAME: EMMANUEL KILONZO KIOKO
Reg Number: D61/5396/2017
This research project has been submitted for presentation with my approval as the university supervisor.
Signature
Date
29/11/2023
Onserio Nyamwange
Lecturer,
Department of Management Science and Project Planning
ii
ACKNOWLEDGMENTS
I wish to offer my sincere appreciation to my supervisor Onserio Nyamwange for his wise
counsel, genuine guidance and encouragement in my academic progress.
I also wish to thank my entire family their understanding and support while undertaking this
study.
iii
DEDICATION
I dedicate this research to my parents Mr. Elijah Ndiku & Mary Kioko, Family Roseanne Njeri,
Blessing Kioko and Uncle Mr. Daniel Kisuke Ndiku for their patience, unwavering support and
understanding during the period of this research.
iv
TABLE OF CONTENTS
DECLARATION .......................................................................................................................ii
ACKNOWLEDGMENT ......................................................................................................... iii
DEDICATION ..........................................................................................................................iv
LIST OF TABLES....................................................................................................................ix
LIST OF FIGURES................................................................................................................... x
ABBREVIATIONS AND ACRONYMS..................................................................................xi
ABSTRACT .............................................................................................................................xii
CHAPTER ONE: INTRODUCTION ....................................................................................... 1
1.1
Background of the Study ............................................................................................... 1
1.1.1
Supply Chain Disruption ........................................................................................ 3
1.1.2 Supply Chain Resilience .............................................................................................. 5
1.1.3 Pharmaceutical Supply Chains in Nairobi Country ....................................................... 6
1.2 Problem Statement ............................................................................................................. 7
1.3 Objectives of the Study ...................................................................................................... 9
1.4 Value of the Study.............................................................................................................. 9
CHAPTER TWO: LITERATURE REVIEW ........................................................................ 11
2.1 Introduction ..................................................................................................................... 11
2.2 Theoretical review ............................................................................................................ 11
v
2.2.1 Resource-Based View ................................................................................................ 11
2.2.2 Stakeholder Theory.................................................................................................... 13
2.2.3 Market- Based View .................................................................................................. 14
2.3 Empirical Studies ............................................................................................................. 16
2.4 Conceptual Framework .................................................................................................... 19
2.5 Summary of the Literature Review ................................................................................... 20
CHAPTER THREE: RESEARCH METHODOLOGY ........................................................ 21
3.1 Introduction ..................................................................................................................... 21
3.2 Research Design............................................................................................................... 21
3.3 Population........................................................................................................................ 22
3.4 Data Collection ................................................................................................................ 22
3.5 Data Analysis ................................................................................................................... 22
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION OF FINDINGS........... 24
4.1 Introduction ..................................................................................................................... 24
4.2 Response Rate .................................................................................................................. 25
4.3 Reliability Test ................................................................................................................. 25
4.4 Demographic Statistics ..................................................................................................... 26
4.5 Supply Chain Resilience ................................................................................................... 28
4.5.1 Supply Chain Pro-activeness ...................................................................................... 30
4.5.2 Supply Chain Technology and Innovation .................................................................. 31
vi
4.5.3 Supply Chain Collaboration and Communication ....................................................... 33
4.5.4 Supply Chain Risk Management ................................................................................ 34
4.6 Correlation between the Resilience practices and supply chain performance practices....... 36
4.7 Diagnostic Tests............................................................................................................... 38
4.8 Relationship between the Study Variables ........................................................................ 40
4.8.1 Model Summary ........................................................................................................ 40
4.8.2 Analysis of Variance .................................................................................................. 41
4.8.3 Regression Coefficients ............................................................................................. 42
CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATIONS ................ 45
5.1 Introduction ..................................................................................................................... 45
5.2 Summary of the Study Findings ....................................................................................... 45
5.2.1 Effect of Supply Chain Pro-Activeness on Supply Chain Resilience .......................... 46
5.2.2 Effect of Supply Chain Technology and Innovation on Supply Chain Resilience ....... 46
5.2.3 Effect of Chain Collaboration and Communication on Supply Chain Resilience ........ 47
5.2.4 Effect of Supply Chain Risk Management on Supply Chain Resilience ..................... 47
5.3 Conclusion ....................................................................................................................... 48
5.4 Recommendations ............................................................................................................ 49
5.5 Limitations of the Study ................................................................................................... 51
5.6 Areas for further Research................................................................................................ 52
REFERENCES ........................................................................................................................ 54
vii
APPENDICES ......................................................................................................................... 59
APPENDIX 1: List of Pharmaceutical Firms in Nairobi ......................................................... 59
APPENDIX 2: Questionnaire ................................................................................................. 60
viii
LIST OF TABLES
Table 4. 1: Reliability Statistics.................................................................................................. 26
Table 4. 2: Age of the Firm ........................................................................................................ 27
Table 4. 3: Position Held in the Firm by the Respondent ............................................................ 27
Table 4. 4: Number of Years the Respondent has worked in the Firm......................................... 28
Table 4. 5: Gender of the Respondents....................................................................................... 28
Table 4. 6: Supply Chain Resilience Practices Adopted By Pharmaceutical Organization .... Error!
Bookmark not defined.
Table 4. 7: Supply Chain Resilience........................................................................................... 29
Table 4. 8: Supply Chain Pro-activeness .................................................................................... 31
Table 4. 9: Supply Chain Technology and Innovation ................................................................ 32
Table 4. 10: Supply Chain Collaboration and Communication.................................................... 33
Table 4. 11: Supply Chain Risk Management............................................................................. 35
Table 4. 12: Correlation Analysis............................................................................................... 36
Table 4. 13: Diagnostic Tests ..................................................................................................... 39
Table 4. 14: Model Summary .................................................................................................... 40
Table 4. 15: Analysis of Variance .............................................................................................. 41
Table 4. 16: Regression Coefficients .......................................................................................... 42
ix
LIST OF FIGURES
Figure 2. 1: Conceptual Framework........................................................................................................ 19
x
ABBREVIATIONS AND ACRONYMS
ASC
Agility Supply Chain
COMESA
Common Market for Eastern and Southern Africa
COVID-19
Corona Virus Disease
ICU
Intensive Care Unit
ISM
Information Systems Management
MEDS
Mission for Essential Drugs Supply
MICMAC
Matrice d'Impacts Croisés Multiplication Appliquée à un Classement
MOH
Ministry of Health
MSME
Micro, Small and Medium Enterprises
PPE
Personal Protective Equipment
RMC
Risk Management Culture
SCC
Supply Chain Collaboration
SCR
Supply Chain Reengineering
SCRM
Supply Chain Risk Management
WHO
World Health Organization
xi
ABSTRACT
This study delved into the crucial realm of supply chains, recognizing their pivotal role in
facilitating the processes of procurement, transportation, and delivery of essential inputs and
outputs for businesses. Specifically, it aimed to investigate how disruptions from COVID-19
impacted the resilience of pharmaceutical supply chains within Nairobi County. The study pursued
two specific objectives: firstly, to comprehend the extent of COVID-19's influence on supply
chains, and secondly, to evaluate the resilience exhibited by pharmaceutical supply chains in
countering the effects of the pandemic. In this endeavor, the study drew upon three pertinent
theories, resource-based view, stakeholder theory and market-based theory, as frameworks for its
exploration. The study followed a descriptive research design to carry out the analysis, employing
a census approach to collect data from all 71 licensed pharmaceutical firms within the study's
scope. Data was meticulously gathered from the supply chain officers of these firms, and
questionnaires served as the data collection instrument which collected panel data for the study.
The findings revealed significant positive correlations between supply chain risk management and
resilience as well as moderate positive correlations for collaboration and communication, while
pro-activeness and technology/innovation showed no significant relationships with supply chain
resilience. The regression analysis yielded an R-squared value of 0.611, indicating that 61.1% of
supply chain resilience variance was explained by changes in the predictor variables, emphasizing
the model's significance. Supply chain collaboration and communication, along with risk
management, significantly contributed to resilience, while pro-activeness and technology and
innovation had no substantial influence, emphasizing the primacy of collaboration and risk
management in bolstering supply chain resilience for pharmaceutical firms in Nairobi County
during and after the pandemic. The study recommended that policymakers and pharmaceutical
firms in Nairobi County should prioritize the development of robust collaboration, communication
and risk management practices within supply chains. This includes fostering partnerships,
investing in technology for real-time coordination, and comprehensive risk assessment and
mitigation. To enhance resilience against disruptions like COVID-19, a multifaceted approach
should be adopted, going beyond technological innovation and pro- activeness. Firms should
integrate pro-activeness and technology into a comprehensive strategy that encourages innovation,
proactive decision-making, and efficient communication while recognizing their indirect
contributions to overall supply chain efficiency and resilience.
xii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
The most critical determinant of success in an organization lies in the ability to establish the best
supplies and procurement methods or rather establishing an effective supply chain. Supply chain
is vital for every business as it integrates all the necessary procedures of establishing, acquiring,
conveying, and delivering the required inputs or outputs to the required destination. A good
organizational supply chain results into improved quality of services and reduced operational cost
(Lambert & Cooper, 2000). Supplies refer to equipment, furniture, appliances, stationery, food,
raw materials, and other essential things that people need to operate efficiently. Procurement is the
process of acquiring goods and services from external sources after an agreement of the terms and
conditions of supply through a competitive bidding process. Logistics in procuring supplies on the
other hand, involves controlling, management and coordination of the procedures involved in
moving the goods from the supplier to the consumer which include packaging, warehousing, and
transportation services (Lambert & Stock, 1993).
Resource – based view is used by the management of any organization as a framework that
theoretically explains how a firm can gain sustainable competitive advantage by establishing and
strategically allocating its resources. Barney (1991), who introduced this theory, explains that
firm’s resources are the engine of gaining a firm sustainable competitive edge. Stakeholder theory
was pioneered by Edward Freeman (1984) explaining the organizational management and
business. Stakeholder theory holds capitalism view as it encourages the interconnected
relationships between potential investors, supply chains, customers,’ employees and even the
1
society as a whole to work in harmony to ensure performance of the business. The theory focuses
on value creation for all stakeholders and influences many business decisions such as strategies in
supply and outstanding strategies. Market- based view theory originated from Mason and Bain in
1950s who emphasized on the basis of firm strategies arising from the prevailing market conditions
(Vibert, 2017). The theory linked the industrial structures to the success of the firm in structure
conduct performance paradigm. The theory argues that for an organization to succeed it must
consider some key factors which include entry barriers into the market, number of players and the
elasticity of demand.
Stringent measures were put in place to mitigate coronavirus pervasiveness in Kenya. These
measures included lockdowns regulations curfew, banning of social gatherings and social
distancing put in place in response to clarion call of ‘flattening the curve’ as well as preventing the
overwhelming of the pandemic on health care services. As the pandemic crisis deepened, Kenya
instituted lockdowns, supply chains were forced to take a new turn as the systemic demand was
shocked since the pandemic forced suppliers to stock up on consumer staples which complied with
the movement restriction. Most cases consumers were forced to shop for stock that could last them
a whole month to avoid movements (Banga, 2020). Pharmaceutical sector unlike other sectors
whose demand deteriorated, demand for pharmaceutical supplies shoot cross the pandemic period
due to its importance in controlling the pandemic. Closure of the main countries such as China and
India that supplies most of products to Kenya magnified the reliance on imported products and
amplified the urgency to establish a robust, resilient and competitive value chain of pharmaceutical
sector as well as focus on developing local manufacturing (Mutangili, 2021).
2
1.1.1 Supply Chain Disruption
The unprecedented chaos brought by COVID-19 pandemic threatened the supply chain of many
businesses leaving them at the verge of fighting for their survival. The COVID-19 pandemic
caused disruptions to the supply chain which included but were not limited to, stoppage of
manufacturing in China, hoarding of products, suppliers getting quarantined at customs coupled
with strict inspection and shortage of capable drivers to pick up containers at the port, all of which
had dire consequences and delayed the delivery of goods and services. Some business lost their
relationship with the suppliers and buyers due to the failure of critical links in the supply chains.
As most countries and regions went into lockdowns it became even more difficult for those hauling
freight by various means be it sea, land or air difficult and thereby slowing down the movement of
even the most vital of products (Ogada et al., 2021). Supply chain disruption refers to the sudden
change or crisis that can either be local or global which results to a negative impact on the process.
Before the coronavirus pandemic, product enhancement and cost reduction were driving
improvements, digitization and investment of the supply chain processes in businesses (Barasa et
al., 2021).
The abrupt lockdown in Kenya forced organization to come to a grinding halt which completely
disrupted supply chains of the commodities produced by those organizations. Supply chain being
a staged procedure, COVID-19 pandemic affected almost all parts of pharmaceutical chain leading
to inadequate essential products such as generic drugs, PPE and medical (Haleem et al., 2020).
Demand and shortages of supply of materials required to manufacture generic drugs accelerated
their cost leaving producers experiencing challenges in producing and supplying
3
their products (Iyengar et al., 2020). Duffy (2020) explained that India closed the exportation of
26 active pharmaceutical ingredients due to some fear that it might require more for itself. The
COVID-19 outbreak significantly affected transportation of goods. It was estimated that by 2020
pandemic effect on growth of cargo markets would be four to five folds in comparison to growth
of passenger traffic (Senguttuvan, 2006). Companies which focused on supplying multiple services
and logistic capabilities to their customers had to deal with significant impacts on all these aspects
over the course of the pandemic (Sun, Wandelt & Zhang, 2020).
Supply chain disruption will be measure on how COVID-19 affected supply chain leading to
changes in customer demand, lead time and price fluctuation. The pandemic displayed the effects
of supply chain disruption in full swing as items specific to the dire situation of the pandemic
gained demand that was unprecedented. This ranged from hospitals competing with each other for
personal protective equipment and medical components to average shoppers who bought items
such as canned goods and toilet paper in bulk in preparation for the impending lockdown measures
(Frederico, 2021). Lead times for air, sea and land cargo transports and production processes
gradually deteriorated as coronavirus disease grew harder and harder due to tightening of the health
restrictions. Prices of commodities begun to increase as lead time and production processes
changed. Businesspeople began converting their commercial jets to cargo planes in order to cover
the demand shortages and increase the lead times as costs of supply chain begun rising (Nižetić,
2020.
4
1.1.2 Supply Chain Resilience
Supply chain integrates manufacturing resources, inventory management for care services, vendors
handling supply chain pipelines and delivery of required commodities by patients and service
providers in pharmaceutical sector. Pharmaceutical supply chain is complex due to its fragmented
processes that involves a consistent flow of product order, necessary information and transfer of
ownership through payment between different stages. The series of steps encompassed in
manufacturing and delivering a product starting from raw materials and concluding with the
delivery to the final consumer is commonly known as the supply chain. Since supply chain
facilitates the transportation of raw materials, capital goods and finished products to where they
are required it is therefore required to be robust enough to withstand different forces and
circumstances. The SCR can be termed as its capability to persist, transform or adapt when faced
with circumstances that forces it to change (Haleem et al., 2020).
A firm`s procurement, production and logistical competencies and contingencies as influenced by
effective and resilient supply chain practices such as innovative marketing strategies, adapting to
modern technologies among other aspects are important in ensuring a competitive edge (Wisner et
al., 2010). As such, many firms have realized the application of supply chain in attracting a
sufficient demand for their products that outdoes other firms in the same market. Since resistance
and recovery defines the SCR. Resilient pharmaceutical firms had the capacity to withstand while
others recovered from pandemic disruptions. To improve the agility of pharmaceutical supply
chains from the stress subjected at national and global level (Hippold, 2020).
5
The strategies that were put in place by the pharmaceutical companies will be used to gauge the
resilience of a supply chain to ensure that it is resistant and once affected can recover quickly from
drawbacks. SCR, SCC, STI and SMP are some of the practices adopted to ensure resilience which
the study will assess. The study will be assessing policy options formulated to strengthen the agility
of the supply chains among pharmaceutical firm. To manage such risks anticipating and
understanding the nature of certain stress is very important to establish an accurately diagnosis of
the problem. Procurement management, regulatory flexibility, enhancing digital trade as well as
improving the infrastructure and inventory and capacity buffers are some of ways that can assist
in building a resilient supply chain and improve competitiveness and productivity of a firm
(Hippold, 2020).
1.1.3 Pharmaceutical Supply Chains in Nairobi Country
Distributors, manufacturers, and retailers are three key components of the pharmaceutical value
chains in Kenya, which includes the creation of inputs, the production of drugs, and the distribution
of those drugs to customers. Value is distributed equally among these stages. The industry has
experienced an annual growth rate of 12%, with the top five manufacturing firms exporting
between 40% and 85% of total output, mostly to nations in East Africa (MOH, 2020).
Pharmacists and distributors who work over the counter portray the marketing strategy used for
medicinal products. According to Kenya Pharm Expo (2016), when compared to other nations in
the COMESA region, Kenya produces the most pharmaceutical products. Kenya is the top supplier
in the area, controlling more than 50% of the export market (Kenya Pharm Expo, 2016).
6
According to KNBS, there more than 9000 registered pharmaceutical companies in Kenya (2012).
The Kenyan pharmaceutical sector is made up of drug producers who sell their goods directly to
consumers through chemists or through Kenya Medical Supply Agency to public hospitals
(Simonetti, 2016). Pharmaceutical items are sold by businesses like the mission for essential drugs
supply (MEDS) to religiously affiliated healthcare facilities. Nairobi is home to 39 licenced
pharmaceutical manufacturing firms out of which 35 produce medications for human consumption
and 5 produce both drugs for human and animal consumption (PATH, 2015).
1.2 Problem Statement
The resilience of pharmaceutical supply chains was crucial during the COVID-19 pandemic to
ensure uninterrupted availability of essential medicines, enabling healthcare systems to adequately
treat patients and manage the disease (WHO, 2021). It would allow for timely delivery of
medications to healthcare facilities, preventing shortages that could compromise patient care. To
assist the chain to adapt quickly and identify alternative suppliers in regions less affected by the
pandemic to mitigate the risk of dependency on a single source and minimize disruptions caused
by measures taken to mitigate the pandemic (Cullinane et al., 2021). Resilience was also necessary
to address the increased demand for critical medications and medical supplies during the pandemic
and facilitate a rapid scaling up of production, efficient distribution and allocation of these essential
items to the areas’ most needed (WHO, 2021). However, the pharmaceutical supply chains were
disrupted by, lockdown measures and travel restrictions causing delays in transporting
pharmaceutical products, leading to shortages and
7
supply chain bottlenecks. Factory closures, reduced workforce and increased demand for critical
medications further strained supply chains, resulting in diminished supply capacities. The
disruption also affected international trade and logistics, hindering the movement of
pharmaceutical products across borders and disrupting timely delivery, exacerbating supply
imbalances (KPMG, 2021).
Corona virus disease inflicted a drastic shortage of acute pharmaceutical materials, equipment and
resources such as drugs, ICU beds, PPE, Fumigations and hand sanitizers as well as mechanical
ventilations. The estimates from WHO showed that, 89 million masks, 76million gloves and 1.6
million goggles were globally consumed in every month for prevention of the pandemic (Sohrabi
et al., 2020). As the pandemic prolonged it heightened the demand pressure on health systems
which were already in a tremendous strain. Countries like Kenya that are in developing process
were placed in a strenuous position due to the insufficient facilities and medical resources as well
as necessary to mitigate the spread of coronavirus. The unpreparedness and ill-equipped state of
the country in facing such a viral mammoth was exposed (Coustasse, Kimble & Maxik, 2020).
Scholars are advancing on different studies to identify the post-pandemic effect of COVID-19 on
different sectors. Grinberga-Zalite et al. (2021) investigated how meat supply chain remained
resilient during and after COVID-19 crisis. Khan et al. (2021) explored the impact of the COVID19 disruptions on medical SC, whereas Yu, Razon, and Tan (2020) investigated the sustainability
of global pharmaceutical SC during the pandemic period. COVID-19's effects on global supply
chains were investigated by Xu et al. (2020). Locally, Letikash (2022) investigated Covid-19
disruptions on SC and resilience within Kenyan pharmaceutical firms, while Mwangi
8
and Ragui (2021) investigated the connection between supplier collaboration, SCR and
supermarket performance in Nairobi City County. These studies reveal a contextual research
vacuum because none of them particularly explore the resilience of pharmaceutical supply chains
in Nairobi County in the context of COVID-19 interruptions. Our study aims to close this gap by
investigating how COVID-19 disruptions affected the resilience of pharmaceutical SC in Nairobi
County, thereby answering the following question: How the resilience of pharmaceutical supply
chain in Nairobi County was impacted by COVID-19 disruptions.
1.3 Objectives of the Study
The main objective of the study sought to establish the effect of disruptions of COVID-19
disruptions on resilience of pharmaceutical supply chains in Nairobi County while the specific
objectives include:
i.
To establish the effect of COVID-19 on supply chains.
ii.
To establish the resilience of pharmaceutical supply chains in mitigating effects of Covid19.
iii.
To establish supply chain resilience practices implemented during and after COVID- 19
era.
1.4 Value of the Study
The stakeholders in the pharmaceutical sector such as the firm shareholders, directors, managers,
employees, customers, suppliers and investors will benefit from this study as it will help them
understand that one of the success drivers is having good supply chain management. The study
will help them learn the necessary logistics required in supply chain management and understand
9
how they were affected by COVID-19. In this case the stakeholders involved will be in a position
to develop working strategies that will provide a remedy to the negative effects, as well as upgrade
the positive effects. This knowledge will help in creating awareness and in decision making toward
good management of the supply chains to ensure effective performance that will lead to the success
of the business.
The study’s conclusions will derive from will be of help to the government and regulatory
authorities such that policy makers will be aptly guided on policy formulation processes thus
assisting in making relevant and attainable policy objectives in supply chain management. Owners
of pharmaceutical business may refer to the findings of this study when making policies that ease
the supply chain processes post- COVID-19 for success, as well as in making sustainable policies
that ensure smooth flow of supplies even when faced with any pandemic.
In the field of academia, scholars and researchers will use this study for references. They will be
keen to note the impact of COVID-19 on pharmaceutical supply chain disruptions in Nairobi
County as will be presented by the study. The scholars will be able to borrow materials such as
research methods which will be adopted by this study, as well as compare their findings.
The study will also be of use to the theoretical postulations that have been found to bear relevance
to the study such that will contribute to the refinement or additions to the theories by determining
the outcome of hypotheses that have not been tested before which in turn will provide new found
clarity in terms of the theories. The completion of this research undertaking will also contribute to
confirming or refuting the theories that have been used to underpin them serving in the long run to
reveal new applications that can expound on their utility in terms of research.
10
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
The chapter’s contents entail a review of various theories found relevant and that have been
underpinned to the study together with a summarized review of the various empirical studies that
have been found to bear similarities to the topic of this study. The outline of the pictorial diagram
of the relationship between the variables and a summary of the chapter concluded the chapter.
2.2 Theoretical review
The study made use of three theories that were found to bear relevance to the topic of this study
which were resource-based view, stakeholder theory and market-based theory. The theories were
expounded below.
2.2.1 Resource-Based View
RBV is used by the management of any organization as a framework that theoretically explains
how a firm can gain sustainable competitive advantage by establishing and strategically allocating
its resources. Barney (1991), who introduced this theory, explains that firm’s resources are the
engine of gaining a firm sustainable competitive edge. This theory stipulates that in designing of
supply management a company should consider the resources that are available to the company.
The theory indicates that parties in the supply chain seek to have an impact on over the elements
of production within a competitive market structure, in order to acquire aggressive facet over their
competitors (Ahuja, 2000). The definition of what constitutes competitive advantage to a firm
anchored on the capability of said firm to allocate and invest resources efficiently. Competitive
advantage can be achieved through exploitation of capabilities
11
and firm resources as well as competences in a firm. Resources that are slowly built up and held
should thus be of value, enticing, of rare form and unique as they hard to imitate with no substitutes
and will thus afford a competitive advantage as divulged by Freeman et al. (2010).
The RBV is pertinent to this study since it highlights the relevance of businesses' strategic
resources and capabilities in attaining and maintaining a competitive edge. The pharmaceutical
business faced unprecedented challenges as a result of the pandemic, necessitating the deployment
of resources and capabilities to adapt and minimize disruptions. To assure continuous access to
important medications, resilient pharmaceutical supply chains required a combination of key
resources such as diversified sourcing, strong supplier relationships, innovative technologies, and
nimble manufacturing processes. Furthermore, risk management capabilities, supply chain
coordination, and communication with healthcare stakeholders were critical in responding to
disruptions caused by lockdowns, transit delays, and increased demand. The theory guides the
research into the specific resources and competencies that improve the resilience of pharmaceutical
supply chains during times of crisis, thereby contributing to effective plans for future pandemic
preparedness and response.
The drawbacks of this theory are that most firms do not have the strategic assets required to qualify
for capability and uniqueness (Al-Ansari, 2014). As such companies that are more capable in terms
of resources and their strategic input have an edge when it comes to competing economically
(McWilliams & Siegel, 2011). This is especially apparent when the individuals that have power
within the hierarchy are misallocated such resources stemming from the assumptions that are made
in the implementation of the theory in practice (Conner, 1991). When
12
a firm has hard to replicate resources in its possession it can be seen a s both a Corporate Social
Responsibility model and as a means of mitigating the pushback that may arise from setting prices
that are higher than the prevailing and normal market prices. Companies that have a considerable
advantage competitively over their counterparts may resort to raising the prices of goods and
services so as to make exorbitant amounts of profits which is serves as unscrupulous means to gain
profit from customers (Conner, 1991).
2.2.2 Stakeholder Theory
Stakeholder theory was pioneered by Edward Freeman (1984) explaining the organizational
management and business. Stakeholder theory holds capitalism view as it encourages the
interconnected relationships between the shareholders, employees, customers, investors, suppliers
and the community to work in harmony to ensure performance of the business. The theory focuses
on value creation for all stakeholders and influences many business decisions such as strategies in
supply and outstanding strategies. A firm stakeholder’s which are made up of the shareholders,
investors, employees, clients, suppliers and the community has the ability to influence a change
on the firm laid policies as well as morals and values (Touboulic and Walker, 2015). The primary
aim of every business is to turn over profit. Strategic decisions on supply must be made to achieve
this objective.
The stakeholder theory is significant to the study because it emphasizes the need of examining the
varied range of supply chain actors, including as producers, distributors, healthcare providers, and
regulatory agencies. Researchers may comprehend the various requirements, interests, and power
dynamics among these stakeholders, as well as how they influence supply chain
13
resilience, by utilizing the stakeholder theory. The theory provides a framework for identifying
and analysing stakeholders' roles, responsibilities, and interactions, allowing for the development
of methods to improve coordination, collaboration, and decision-making amid disruptions like the
pandemic (Freeman, 2010). Understanding and embracing stakeholders' viewpoints and interests
is critical for designing effective resilience strategies and ensuring the supply and accessibility of
critical medicines during times of crisis.
The objective of making profits within a business without infringing on the various stakeholders
attached to it is at conflict with the main postulations of this theory. The theory is seen to infringe
on the property rights of stakeholders as it does not consider the various capitalisms and since it
eliminates the role of government in the firm goes about acting negatively on the free- market
mechanisms that are in place (Sternberg 1997). The interaction among shareholders is reliably
heterogeneous adopting a nuanced view as such. Ranging from variable dependence changes in
salience, multiple linkages and relationships of that order offer the major criticisms when it comes
to this particular postulation (Fassin, 2008).
2.2.3 Market- Based View
Market- based view theory originated from Mason and Bain in 1950s that went about explaining
the market conditions and the role they had in the development of strategic firm plans (Vibert,
2017). This postulation thus linked the firms and the structure within which they were located as
a whole industry to the success of the various organizations in structure conduct paradigm. The
theory argues that for an organization to succeed it must consider some key factors which include
entry barriers into the market, number of players and the elasticity of demand. Porter
14
(1980) advanced the main postulations of this theory when he came up with five forces that
constitute and that are used to gauge rivalry among firms and the three strategies that can be
deployed to enhance performance of a firm if successfully implemented, thus, forming a
framework that identified product substitutes, new entries as a threat in the market and the
bargaining power of both buyers and suppliers as drivers of rivalry within an industry. In the
industrial structure these forces determine the attractiveness and the competitiveness among rivals.
The supplier’s bargaining power affects the cost of inputs and therefore determines the production
cost which also determines the cost of goods and services. Through strategic choices a firm
competitively positions itself within the study which determines its profitability.
The market-based perspective adds vital insights to the study by emphasizing the role of market
dynamics, competition, and strategic decision-making in determining business and industry
performance. In the context of the pandemic, the market-based perspective aids in analysing how
pharmaceutical businesses responded to disruptions, such as changing sourcing strategy, locating
alternative suppliers, and engaging with stakeholders to assure the availability of important
medicines. It also illuminates the competitive landscape and the importance of market forces in
influencing the resilience and recovery of the pharmaceutical supply chain, such as pricing,
demand-supply dynamics, and strategic partnerships. The market-based perspective provides a
thorough understanding of the interplay between market dynamics, corporate strategy, and the
resilience of the pharmaceutical supply chain throughout the COVID-19 pandemic.
The major criticisms of this theory arise from the fact that various scholars and shareholders argue
it is beyond logic to base all strategy on the market-based view while leaving all the
15
internal factors to a firm and argue that the resource-based view is much more prudent in terms of
choosing a basis of making strategies. Considering only the structure of the industry makes the
theory to be one-sided view failing to give account of the operations within the firm. Moreover,
not all resources are homogenous, and the access of these resources can vary within one industry
(Makhija, 2003).
2.3 Empirical Studies
Investigating the extent of the SCR of Dutch food before, during and after COVID-19, Demirci
(2021) purposed to establish how Dutch food maintained a resilient supply chain despite the
pandemic crisis. The research undertaking took to completing a case study in the form of a
qualitative study interview method for one of the supply chains of Dutch food. Determining
strategies adopted before during and after the COVID-19 crisis was the aim of the study. Primary
and secondary data was obtained where interview was used to collect primary data from 8
managers who came from the supplier, head quarter, distribution centres and supermarket.
Secondary data was obtained from the internal document of the supermarket and online publication
which supported the findings. The results revealed that Dutch food was proactive in making
contingency plans of how to be prepared in case of unexpected disruptions. Plans such as adapting
and absorbing the negative impacts of the pandemic enabled them to respond quickly to recover
their performance. Strong collaboration of both internal and external supply chain partners played
a significant role in maintaining the resilience. However, the study does not address the effect of
the recent pandemic on SC disruption which was addressed by the current study.
16
Al-jadir and Alnemesh (2020) used quantitative method to determine the association between
corona virus pandemic and supply chain as it pertains of health care industry. Secondary and
primary data sources were used for the study. Primary data was obtained through interviewing
method on some several personnel in the healthcare industry while secondary data was extracted
from their internal document and online publication. The study findings concluded that the
unavailability of medical equipment and the barriers experienced within the supply chain results
into shortage of tools putting Stockholm in a critical condition. However, the study did not
illustrate clearly how COVID-19 disrupted supply chain in the healthcare industry which became
the study gap for this study.
Meyer, Walter and Seuring (2021) targeted the effects of the pandemic as affected by text mining
and how these two factors were imperative the supply chain and its sustainability. The aim of the
research was to analyse ways in which text mining could provide insight on the implications of the
lockdown measures on supply chains in relation to sustainability, resilience, risk. Data was
obtained from secondary data from the general newspaper on text mining and supply chain and
logistic newspaper articles. In the analysis the study employs the open- source software R. The
timeline of the data collection was divided in to three phases which included pre- during and post
pandemic period. However effects of coronavirus pandemic on supply chain were not clearly
depicted in the study.
Design method of interpretive structure modelling was applied in research done to determine
barriers hindering sustainability of the SC in pharmaceuticals during the post-pandemic era (Liza,
2022). The study also applied the matrix of cross- impact multiplications to the classification.
Basing on the driving and dependency power ISM uses MICMAC to develop a
17
hierarchical decision tool that can be used by the decision makers as well as in cluster analysis.
The study found four barriers that were in a four-level of hierarchy in their interactions. The poor
strategic implementation of risk management measures coupled with the poor dissemination of
information were the major barriers during the pandemic. The insufficiency of SC strategic plan
to sustain flexibility during the pandemic period served as the major barrier. However, the study
failed to employ statistical analysis methods which became the study gap for the current study.
In Kenya, a study was done to gauge whether the integration of various supply chains can result
in the improvement of firm output and profits during the 2020 pandemic as reliance and innovation
are implemented to ensure business success (Tarigan & Siagian, 2020). Primary data was obtained
by administering questionnaires where 470 respondents were collected for data analysis. Used of
partial least square technique using smartPLS software was done to analyse the data. The study
arrived at the conclusion that indeed the integration of supply chain systems is a factor affecting
innovation, system flexibility and resilience during the COVI-19 pandemic. However, the study
failed to consider the impact of COVID-19 on the supply chain which was addressed by the current
study.
Nordhagen et al. (2021) did a study on small businesses within the food SC and how they were
affected by the advent of the pandemic to establish the early effects and long-term implications on
food supply chain resilience in third world countries. The study analysed 367 agri-food MSMEs
in 17 developing countries. From the data collected, 94.3% of the respondents reported that the
operations of their firms had been affected by the pandemic where there was a decrease in sales,
low access to inputs, difficulties with staffing and financing. 13% of the respondent
18
reported to have closed the production. 82% reported a decrease in production. 54% altered their
prices due to the pandemic effects. 80% of the enterprises had implemented mitigation measures
of the pandemic effects while 44% were considering new business ventures. However, the study
did not reveal clearly how supply chains were impacted upon by the pandemic which became the
study area of the current study.
2.4 Conceptual Framework
The correlation between the study variables is shown in a pictorial diagram below. The framework
provides a structured and theoretical foundation for understanding and analysing the relationships
of the study variables. The independent variables are practices which were employed by firms
during the covid-19 disruptions measuring against the dependent variable showing the ability in
which the firms operated in effectiveness to meet there operations. They assist in showing the more
important areas, outcomes and where more emphasis is needed. The framework outlines key
variables and their theoretical interconnections.
Figure 2. 1: Conceptual Framework
Source: Researcher, (2023)
19
2.5 Summary of the Literature Review
This chapter divulged the theoretical review that bore relevance to the contents and the completion
of this study. RBV is a theory that explains how a firm makes decision based on the resources
available. In pharmaceutical industry, these resources were used to increase the supply of the
products that were highly demanded especially when the demand of a certain product spiked due
to unpredicted pandemic. These slake resources were therefore set aside for such unprecedented
occurrences to help a firm become more competitive. Stakeholder’s theory advocates for a strong
relationship between the suppliers and the firm. A good communication system is emphasized to
have an effective negotiation and coordination of the supply chain. The last theory was the marketbased view theory which identifies market gaps as the focus of the firm. It therefore implies that
a firm should first identify a market gap then look for ways to fit in the market to fill the gap. This
can assist a firm to strategically plan for its resources as well as its supply chain logistics with a
purpose filling the gap which makes it competitive.
The chapter then analysed the various empirical research undertakings that have been done in
relation to this study’s main topic. From the studies the effect of COVID-19 pandemic on resilience
pharmaceutical supply chain had not been fully studied. Most of the studies that had been done on
impacts of COVID-19 related to other sectors such as food supply among others. These sectors
were differently affected depending on essentiality of the product dealt with. The demand for nonessential goods decreased putting businesses that dealt with those non-essential goods in a risky
position of collapsing forcing them to fight for their survival. Some business thrived during the
pandemic period especially online businesses and pharmaceuticals which dealt with essential
goods whose demand increased with the situation and the main challenge was to
20
meet demand amid supply disruptions. The chapter concluded by outlining the conceptual
framework of the study.
21
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
This chapter carefully outlined the research design employed, specifying the approach utilized to
investigate the research questions. The population of interest was clearly defined, delineating the
specific group or individuals the study aimed to target for data collection. Detailed descriptions of
the data collection methods, including surveys, interviews, or observations, were provided.
Additionally, the analytical methods and techniques applied to process and interpret the collected
data were thoroughly discussed. This chapter served as a critical foundation, guiding the entire
research process and ensuring a systematic and well-structured approach to addressing the study's
objectives.
3.2 Research Design
A research design serves as a conceptual framework delineating the research approach. A
descriptive research design was selected due to its appropriateness in systematically gathering and
analysing data to generate a comprehensive and precise depiction of the subject of study. It aided
in the identification of patterns, trends and connection within data (Lavrakas, 2008). It enabled the
researcher to investigate differences in disruption of resilience of the supply chain among
individual pharmaceutical enterprises in Nairobi County. This approach was used to elucidate the
association between study variables, which in this case was supply chain resilience. Because the
descriptive design may incorporate both quantitative and qualitative research
22
approaches, it was deemed appropriate for thoroughly clarifying the characteristics of the variables
of interest as well as the interplay between numerous variables within the study (Serkan 2003).
3.3 Population
The study population is a group of objects, items, events or individuals with a specific
characteristic to be studied. There were 71 licensed pharmaceutical firms in Kenya (refer to
Appendix 1). The study therefore targeted all the 71 licensed firms, where data was collected from
the supply chain officer of each firm or from their assistants. The study undertook a census which
included the whole population.
3.4 Data Collection
The research utilized original data collected by distributing questionnaires. The study participants
were sent online survey questionnaires as part of the data collection process. Google Forms was
an important tool where the researcher sent the questionnaires on emails or on mobile networks to
the respondents. The study was to use also drop and pick later method of administering
questionnaires, to the study respondents whose online contacts would be difficult to access.
3.5 Data Analysis
The study conducted a rigorous data analysis process, which commenced with thorough data
cleaning and editing to rectify errors and ensure data completeness. Subsequently, the collected
data was subjected to statistical analysis using SPSS. Descriptive statistics, including mean,
23
mode, median, and std. deviation, were computed to discern both the central tendencies and
disparities within the dataset. To explore the relationships between the study variables, the study
adopted a comprehensive approach, employing both correlation and regression analyses. These
analyses not only elucidated the direction and magnitude of associations but also determined the
significance of these associations, thereby providing valuable insights into the interplay among the
variables under investigation. This meticulous analytical process contributed significantly to the
study's ability to draw meaningful conclusions and address the research objectives effectively.
24
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION OF FINDINGS
4.1 Introduction
This chapter encompassed several essential components of data analysis, including assessing
response rates, conducting reliability tests, performing descriptive analyses, exploring correlations,
engaging in regression analyses, and ultimately providing a comprehensive interpretation of the
results. This comprehensive approach ensured that the study's objectives was not only met but also
offered a well-rounded perspective on the research question.
Descriptive statistics were employed to give an overview of the collected data. For the general
profile data, cumulative frequencies and percentage were used to analyse and present the
distribution of various demographic variables. This assisted in the understanding of the
characteristics of the study respondents. For the study variables which were assessed using a Likert
scale, a coding scheme was applied, where values ranging from 1 to 5 were assigned to each
response option. Subsequently, descriptive statistics, such as mean, mode, median and std.
deviation, were calculated to summarize and characterize the respondents' attitudes and
perceptions regarding the study variables. These statistical measures provided a clear and concise
representation of the central tendencies, modes, and variations within the Likert-scale data,
facilitating a deeper understanding of the COVID-19 disruptions on resilience of pharmaceutical
supply chains in Nairobi County.
4.2 Response Rate
The response rate, in the context of surveys, research studies, or data collection efforts, indicates
the proportion of individuals or organizations that actually engage in the process compared to the
overall number of those who were eligible or invited to take part. In the specific study at hand,
which aimed to gather insights from 71 licensed pharmaceutical firms in Kenya, responses were
25
successfully obtained from 66 such firms. This translated to an impressive response rate of 92.96%,
a statistic that proved to be quite substantial and suitable for conducting a comprehensive analysis
and generating valuable recommendations based on the study's findings.
4.3 Reliability Test
A reliability test is a statistical study that is performed to determine the consistency and stability
of a measuring or assessment tool, such as a survey or questionnaire. Its goal is to examine how
well the tool produces consistent and reliable results across many administrations or across
different areas of the instrument. The Cronbach's alpha coefficient is a tool employed for
evaluating the reliability and internal consistency of a collection of survey items. A greater
Cronbach's alpha value indicates a more substantial consensus among the items in the collection.
This coefficient is standardized and falls within the 0 to 1 range. A robust Cronbach's alpha
indicates a dependable measurement of the intended construct, as it demonstrates those
respondents' responses to a series of questions exhibit consistency. Conversely, lower Cronbach's
alpha values suggest that the set of items may not accurately capture the same underlying concept,
potentially indicating measurement issues.
Table 4. 1: Reliability Statistics
Reliability Statistics
Variables
Cronbach's Alpha
N of Items
Y = Supply Chain Resilience
0.505
7
X1 = Supply Chain Pro-activeness
0.520
4
X2 = Supply Chain Technology and Innovation
0.520
4
X3= Supply Chain Collaboration and Communication
0.532
7
X4 = Supply Chain Risk Management
0.460
5
Source: Researcher (2023)
26
4.4 Demographic Statistics
The study employed demographic statistics, incorporating percentages and cumulative
frequencies, to illuminate crucial facets of pharmaceutical firms. By scrutinizing the age of these
organizations, the research aimed to discern patterns and trends, providing invaluable insights into
the longevity of individual firms. Furthermore, the examination of the position held by respondents
within these firms shed light on organizational hierarchies, offering a comprehensive
understanding of the distribution of roles. The investigation into the number of years respondents
spent working in the firms not only delineated workforce experience but also hinted at potential
correlations between longevity in the pharmaceutical sector and specific positions. Additionally,
the gender of respondents was a focal point, unveiling gender dynamics within the industry. Lastly,
the study explored the supply chain resilience practices adopted by pharmaceutical
organizations, contributing to a nuanced comprehension of their operational strategies and
adaptability in the face of challenges.
Table 4. 2: Age of the Firm
Frequency
Valid
Percent
Valid Percent
Cumulative
Percent
16 years to 30 years
1year to 5 years
6 years to 15 years
11
18
32
-
-
-
A) 1 year and Below
Over 30 Years
1
4
1.5
6.1
1.5
6.1
-
66
100.0
100.0
Total
Source: Researcher (2023)
Pharmaceutical firms, as shown above, had varying ages, with some being 1 year or below, some
between 1 - 5 years, some between 6 - 15 years, and others between 16 years and 30 years, while
a few were over 30 years old. Those between 6 years and 15 years were the majority and only one
firm was below one year.
27
Table 4. 3: Position Held in the Firm by the Respondent
Frequency
Valid
Percent
Other managerial roles
Supply Chain Department
29
37
43.9
56.1
Total
66
100.0
Valid Percent
43.9
56.1
Cumulative
Percent-
100.0
Source: Researcher (2023)
The table depicted the positions held by respondents within the firm, where 43.9% held other
managerial roles, and 56.1% were in the Supply Chain Department, accounting for the total of 66
respondents.
Table 4. 4: Number of Years the Respondent has worked in the Firm
Frequency
Valid
1 year and below
Percent
Valid Percent
Cumulative
Percent
8
12.1
12.1
12.1
11 years to 20 Years
2 years to 5 Years
6 years to 10 Years
11
24
22
-
-
-
Over Twenty Years
Total
1
66
1.5
100.0
1.5
100.0
100.0
Source: Researcher (2023)
The table displayed the number of years respondents had worked in their firms, revealing that
12.1% had worked for 1 year and below, 16.7% for 11 years to 20 years, 36.4% for 2 years to 5
years, 33.3% for 6 years to 10 years, and 1.5% had been employed for over twenty years, making
up the entire dataset.
Table 4. 5: Gender of the Respondents
28
Source: Researcher (2023)
The table above presented data on gender distribution, where 29 individuals were identified as
female, accounting for 43.9% of the total, and 37 individuals were categorized as male,
representing 56.1% of the total.
4.5 Supply Chain Resilience
The study included the following questions in the questionnaire to assess supply chain resilience:
SCR1 - SCR after COVID-19 disruptions made the company gain more customers and retain
current customers.
SCR2 - The operations of the firm were well maintained during and after COVID-19 disruptions.
The firm operated at full capacity.
SCR3 - Products procured during the pandemic were not enough to meet the increasing demand.
SCR4 - Communication was affected by the pandemic restrictions delaying the importation of
the essential products which affected lead time.
SCR5 - Freight time was also altered during the pandemic period affecting the shipment of
goods.
SCR6 - Some stages in the supply chain structure of our organization were omitted during the
pandemic to reduce lead time.
SCR7 - Our firm increased the procurement of the essential products that were on high demand
during the pandemic
Table 4. 6: Supply Chain Resilience
SCR1
N
Valid
SCR2
66
SCR3
66
66
29
SCR4
SCR5
66
SCR6
66
66
SCR7
66
Missing
0
0
0
0
0
0
0
Mean
3.80
2.64
3.64
3.41
3.35
3.52
3.50
Median
4.00
2.00
4.00
3.00
3.00
4.00
4.00
4
2
4
3
4
4
.915
1.320
1.104
3a
1.052
1.074
1.085
1.154
Mode
Source: Researcher (2023)
The table above depicted various statements related to supply chain resilience, revealing that the
mean ratings ranged from 2.64 to 3.80, with corresponding std. deviations ranging from 1.052 to
1.320. The statement, SCR2, had the lowest mean rating (2.64) indicating that respondents generally
perceived this aspect less positively. The statement, SCR1, had the highest mean rating (3.80) indicating that
respondents viewed this aspect more positively. The median ratings and modes also provided insights into
the central tendencies and common responses for each statement. The mode for the statement with the lowest
mean (2.64) is 2, suggesting a concentration of responses at this lower end of the scale, while the mode for
the statement with the highest mean (3.80) is 4, indicating a concentration of responses at the higher end of
the scale.
4.5.1 Supply Chain Pro-activeness
The study included the following questions in the questionnaire to assess supply chain proactiveness:
SCP1 - The management was proactive in defining challenges affecting the supply chain and had
made prior control measures.
SCP2 - The supply chain management adopted is flexible to ensure that disruptions do not affect
the supply chain.
SCP3 - The firm was able to access competent and qualified staff in supply chain.
SCP4 - The SC is agile and is able to effectively adjust to market disruptions such as shortages,
closure of a network chain, government interference, among other risks.
30
Table 4. 7: Supply Chain Pro-activeness
SCP1
SCP3
SCP4
66
66
66
66
0
0
0
0
Mean
3.83
4.12
3.33
4.18
Median
4.00
4.00
3.00
4.00
4
4
3
4
.834
.755
1.155
.802
N
Valid
SCP2
Missing
Mode
Source: Researcher (2023)
The managements of pharmaceutical firms demonstrated proactive measures in addressing
challenges within the supply chain, as indicated by the overall mean score for the statements ranged
from 3.33 to 4.18, with a relatively low std. deviation ranging from 0.755 to 1.155, suggesting a
relatively narrow spread of responses around the mean. This suggested a generally positive
perception of the management's readiness to tackle supply chain issues. SCP4 received the highest
average mean of 4.18 and a std. deviation of 0.802, reflecting a strong belief in the statement. The
statement’s mode and median were both 4, reinforcing the consensus of the respondents with the
statement. Conversely, the statement, SCP3, had a lower average mean of 3.33, and a std. dev. of
1.155, indicating that it was viewed less favourably by the respondents. The median was 3, and the
mode was 3, suggesting that this aspect faced some variability in responses and did not align as
strongly with respondents' perceptions.
4.5.2 Supply Chain Technology and Innovation
The study included the following questions in the questionnaire to assess supply chain
technology and innovation:
SCTI1- The firm has robust systems that forecast trends accurately, therefore able to respond to
disruptions appropriately.
31
SCTI2 - The firm uses supply chain engineering effectively to create new processes that help in
sustainability.
SCTI3 - The firm uses new and modern technology in the supply chain.
SCTI4 - The firm uses competent data analytics in forecasting and in big data analytics.
Table 4. 8: Supply Chain Technology and Innovation
SCTI1
N
Valid
SCTI2
SCTI3
SCTI4
66
66
66
66
0
0
0
0
Mean
4.03
3.83
3.70
3.77
Median
4.00
4.00
4.00
4.00
5
4
4
4
.960
.954
1.007
1.093
Missing
Mode
Source: Researcher (2023)
The overall mean ratings across the four statements ranged from 3.70 to 4.03, with corresponding
std. deviations varying from 0.954 to 1.093. The statement, SCTI1, had the highest mean rating of
4.03, suggesting that majority of responses agreed with the statement, with a std. deviation of
0.960 indicating moderate variability. Conversely, the statement, SCTI3 had the lowest mean
rating of 3.70 indicating a less favourable perception regarding the statement, with a std. deviation
of 1.007 reflecting higher variability. The consistency in median and mode values, all being 4,
reflected a central tendency in respondents' ratings for most statements, indicating an overall
positive perception of the company's supply chain practices, albeit with varying degrees of
certainty, as indicated by the std. deviations.
32
4.5.3 Supply Chain Collaboration and Communication
The study included the following questions in the questionnaire to assess supply chain
collaboration and communication:
SCCC1 – The firm increased its collaboration with other supply chain networks - locally and
internationally.
SCCC2 – The firm integrated more effectively with suppliers, distributors, and customers during
COVID-19.
SCCC3 – The firm has long term commitments with the suppliers to enhance committed
networks and partnerships that respond effectively to any disruptions.
SCCC4 – Strategic supplier partnerships in my firm have greatly increased our network and
strengthened communication channels with our vendors.
SCCC5 – The networking between the suppliers, distributors and the firm are well developed to
support the firm in operations
SCCC6 – The distribution network for supplies and raw materials was not affected during covid19 disruptions.
SCCC7 – Open communications were encouraged during COVID-19 interruptions from all
stakeholders in the SC network, that no shortfalls were realized.
Table 4. 9: Supply Chain Collaboration and Communication
SCCC1
N Valid
SCCC2
SCCC3
SCCC4
SCCC5
SCCC6
SCCC7
66
66
66
66
66
66
65
0
0
0
0
0
0
1
Mean
3.73
2.67
4.08
4.33
3.50
2.48
3.06
Median
4.00
2.00
4.00
4.00
4.00
2.00
3.00
4
2
4
5
4
2
2a
1.001
1.232
.791
.709
1.085
1.126
1.236
Missing
Mode
33
Source: Researcher (2023)
The table above shows, the overall mean ratings for the statements regarding supply chain activities
during the COVID-19 pandemic which ranged from 2.48 to 4.33, with a std. deviation of 0.709 to 1.236.
These figures indicated that there was some variability in the responses, with the statements having means
closer to 4 suggesting a more positive assessment of the SC performance during the pandemic. The
statement, SCCC4, had the highest mean rating of 4.33, with a std. deviation of 0.709, suggesting that,
on average, most respondents agreed with the perception of the statement. The statement SCCC6 had the
lowest mean rating of 2.67, with a std. deviation of 1.232, indicating that on average, respondents were
less positive about the statement. The median values for these statements were generally in alignment
with the means, with modes clustered around the most common response, emphasizing the consistency
of the ratings. The data suggested that while the company's integration with stakeholders improved during
COVID-19, there might have been room for enhancement in its collaboration efforts with other supply
chain networks.
4.5.4 Supply Chain Risk Management
The study included the following questions in the questionnaire to assess supply chain risk
management:
SCRM1 – Regulations and policies of our company in regard to SCR management delayed the
procurement of essential products required during the pandemic.
SCRM2 - Communication was affected by the pandemic restrictions delaying the importation of
the essential products which affected lead time.
34
SCRM3 - The Increased government restrictions in the port on importation delayed essential
products imported which increased lead time.
SCRM4 - Some stages in the supply chain structure of our organization were omitted during the
pandemic to reduce lead time.
SCRM5 - The supply chain management has documented all risky areas and their impact on the
company for the entire supply chain.
Table 4. 10: Supply Chain Risk Management
SCRM1
SCRM3
SCRM4
SCRM5
66
66
66
66
66
0
0
0
0
0
Mean
3.12
3.41
3.52
3.52
3.85
Median
3.00
3.00
3.00
4.00
4.00
2
3a
3
4
4
1.247
1.052
1.056
1.085
.916
N
Valid
SCRM2
Missing
Mode
Source: Researcher (2023)
The table above presented the results of the survey data on various aspects of supply chain risk
management of pharmaceutical firms in Nairobi County. The overall mean scores for these
statements ranged from 3.12 to 3.85, with a std. deviation ranging from 0.916 to 1.247. The median
scores ranged from 3.00 to 4.00, and the mode values varied, with multiple modes observed.
Among the statements evaluated, SCRM1 had the lowest mean score of 3.12, indicating a
relatively lower level of agreement among respondents regarding this statement. The std. deviation
for this statement was 1.247, suggesting some variability in responses. The median and mode for
this statement were both 3, indicating that this score was the most frequently occurring response.
SCRM5 had the highest mean score of 3.85, indicating a higher level of agreement among
respondents regarding this statement. The std. deviation for this statement was
35
0.916, indicating less variability in responses compared to other statement. The median and mode
for this statement were both 4, showing that this score was also the most frequently occurring
response.
4.6 Correlation between the Resilience practices and supply chain performance practices
Correlation analysis was applied to explore the connection between the variables in the study. This
analysis aimed to establish the determinants that might influence or contribute to the resilience of
the supply chain of pharmaceutical firms within Nairobi during and after COVID- 19 pandemic,
shedding light on which aspects of supply chain management played a more significant role in
achieving supply chain resilience.
Table 4. 11: Correlation Analysis
Y = SCR
Y = SCR
X1 = SCP
X1 = SCP
X2 = SCTI
X3 = SCCC
X4 =SCRM
1
.215
1
.083
X2 = SCTI
X3 = SCCC
X4 =SCRM
-.039
.630**
.753
.000
*
.260
.264*
.242
.035
.032
.050
.724**
.225
.020
-.009
.000
.069
.875
.943
1
1
Source: Researcher (2023)
The results depicted that SCRM indicated a significant and positive correlation against SCR, with
a coefficient of 0.724. This indicated that as SCRM improved, SCR tended to enhance
significantly. Additionally, supply chain collaboration and communication displayed a moderate
36
1
positive correlation with supply chain resilience, with a correlation of 0.260 at a significance level
of 0.035. This suggested that effective collaboration and communication within the SC could
positively influence its resilience. However, supply chain pro-activeness and supply chain
technology and innovation did not exhibit statistically significant correlations with supply chain
resilience, with correlation coefficients of 0.215 and -0.039, respectively, both having p-values
above 0.05. This implied that pro-activeness and technological innovation may not have played
substantial roles in determining supply chain resilience. These findings highlighted the
significance of effective SCRM strategy and improved collaboration and communication in
enhancing supply chain resilience during the pandemic era, while the roles of pro-activeness and
technology innovation appeared less significant.
In comparing the current study's correlation findings with various empirical results, commonalities
across studies are evident, particularly in the positive correlation observed between supply chain
risk management and supply chain resilience. Both the current study and Demirci's (2021) research
highlighted the pivotal role of effective SCRM strategies in enhancing overall resilience, reflecting
a consistent trend in recognizing the importance of risk management in navigating disruptions.
Similarly, Liza et al.'s (2022) emphasized the crucial role of strategic planning, risk management
and resilience in post-COVID-19 operational performances. Furthermore, the positive correlation
between supply chain collaboration and communication and resilience observed in the current
study resonated also with Nordhagen et al.'s (2021) study which suggested that improved
collaboration positively influences resilience, emphasizing the significance of cohesive
communication and collaboration in enhancing adaptive capacity during disruptions.
37
However, differences become evident when considering supply chain pro-activeness and
technology/innovation. The current study suggested no statistically significant correlation between
pro-activeness and resilience, while Demirci's findings highlighted the proactive strategies adopted
by Dutch food supply chains. Furthermore, the lack of a significant correlation between supply
chain technology and innovation and resilience in the current study contrasted with Meyer, Walter,
and Seuring's (2021) study, emphasizing the importance of technology measures. These
differences imply that the role of pro-activeness and technology in determining supply chain
resilience may vary across different industries and contexts, reinforcing the need for industryspecific strategies in managing disruptions. Additionally, the study by Al-jadir and Alnemesh
(2020) introduced nuances and challenges specific to the healthcare supply chain, suggesting
industry-specific dynamics in the relationship between collaboration and resilience.
4.7 Diagnostic Tests
Diagnostic tests are used to assess the model's assumptions and detect potential issues with the
regression model, such as normality, linearity, autocorrelation heteroscedasticity and
multicollinearity. Diagnostics test were undertaken to ensure that the regression model used was
valid and free from assumptions before proceeding with the regression analysis. Firstly, the
Shapiro-Wilk Test for normality was employed to ascertain the normal distribution of the data,
where a p-value lower than 0.05 would indicate non-normality in the dataset. Secondly, scatter
plots were utilized to test the linearity assumption between variables. Thirdly, the Durbin- Watson
test was calculated to check for autocorrelation, with a value less than 3 suggesting no significant
correlation. Heteroscedasticity was examined using the Breusch-Pagan test, where a p-value
higher than 0.05 would imply the presence of heteroscedasticity. Lastly, VIF was used to
38
test multicollinearity, with a VIF value less than 10 signifying non-multicollinearity among the
independent variables. These diagnostic tests were crucial in ensuring the robustness and validity
of the regression model, allowing the study to make reliable inferences from the subsequent
regression analysis.
Table 4. 12: Diagnostic Tests
Source: Researcher (2023)
39
4.8 Relationship between the Study Variables
The research utilized regression analysis to explore how different independent variables influenced
SCR in the pharmaceutical sector during the COVID-19 disruptions in Nairobi County. This
analysis aimed to identify crucial factors shaping resilience in this specific historical context.
4.8.1 Model Summary
The model summary provided a concise overview of the regression model's performance, offering
key statistics such as R2 and adjusted R2 to show the proportion of variance accounted by the
independent variables and coefficients of determination to evaluate the goodness of fit.
Table 4. 13: Model Summary
Model
R
R
Adjusted R
Std. Error of the
Square
Square
Estimate
Change Statistics
R Square Change
1
.782a
.611
.586
-
F Change
.611
a. Predictors: (Constant), X4 = SCRM, X3 = SCCC, Zscore: X2 =SCTI, X1 =SCP
b. Dependent Variable: Zscore: Y = SCR
Source: Researcher (2023)
The regression analysis revealed an R2 value of 0.611, indicating that 61.1% of the variability in
the SCR could be accounted for by the predictors included in the model. This implied that around
38.9% of the variability in the SCR (dependent variable) was attributed to factors not considered
in the model. The adjusted R2, which adjusts for the number of determinants, stood at
0.586. This adjustment acknowledged that roughly 58.6% of the variation in supply chain
resilience could still be explained by the independent variables after accounting for their number.
40
23.956
It's worth noting that the adjusted R-squared was slightly lower than the R-squared, indicating that
certain elements in the model did not contribute significantly. The substantial R-squared and
adjusted R-squared values collectively indicate a strong fit of the model to the data.
4.8.2 Analysis of Variance
ANOVA was used to determine differences between research results from three or more unrelated
samples the method was employed to ascertain whether statistically significant disparities existed
among the means of several groups or treatments. This was done by comparing variances within
and between these groups, aiding in the identification of significant effects or associations among
the study's variables.
Table 4. 14: Analysis of Variance
ANOVAa
Model
1
Sum of Squares
Df
Mean Square
Regression
39.717
4
9.929
Residual
25.283
61
.414
Total
65.000
65
F
23.956
Sig.
.000b
a. Y = SCR
b. Predictors: (Constant), X4 = SCRM, X3 = SCCC, Zscore: X2 = SCTI, X1 = SCP
Source: Researcher (2023)
The ANOVA outcomes indicated a highly significant F-statistic of 23.956 (p < 0.001), signifying
that the model was significant and therefore the study rejected the hypothesis of the study and
concluded that there was a significant impact of COVID-19 pandemic on resilience of
pharmaceutical supply chain.
41
4.8.3 Regression Coefficients
Regression coefficients represent the numerical values assigned to independent variables in a
regression model, indicating their respective impact on the dependent variable. This represents the
degree to which the line slopes upwards or downwards. These coefficients were employed to
measure the size and direction of the associations between the study variable. They offered insights
into which factors exerted significant influence and to what degree.
Table 4. 15: Regression Coefficients
Model
Unstandardized Coefficients
B
1
Std. Error
(Constant)
-6.309
.948
X1 = SCP
.020
.052
-.140
X3 =SCCC
X4 = SCRM
Zscore: X2 = SCTI
Standardized Coefficients
T
Sig.
Beta
-6.657
.000
.035
.376
.708
.090
-.140
-1.547
.127
.077
.022
.290
3.426
.001
.241
.026
.728
9.111
.000
a. Dependent Variable: Zscore: Y = SCR
Source: Researcher (2023)
From the table above, the constant term exhibited a substantial negative effect with a coefficient
of -6.309 and a p-value of 0.000, implying a significant adverse influence on SCR when other
variables remained constant. Notably, SCCC (X3) demonstrated the most significant positive
effect, boasting a coefficient of 0.077 and a highly significant p-value of 0.001, signifying that
enhancement in collaboration and communication positively contributed to SCR. Similarly, SCRM
(X4) displayed a notably positive and highly significant coefficient of 0.241 with a p- value of
0.000, highlighting its robust positive impact on SCR. Conversely, SCP (X1) and SCTI (X2)
yielded non-significant coefficients of 0.020 and -0.140, respectively, suggesting that these
42
factors did not possess a statistically significant influence on SCR. These results implied that,
effective risk management and enhanced collaboration and communication were key drivers of
supply chain resilience of pharmaceutical firms within Nairobi County during and after the
COVID-19 pandemic era, while pro-activeness and technological innovation did not play
significant roles in determining supply chain resilience. Therefore, the model was transformed in
to: Y = -6.309 + 0.077X3 + 0.241X4 + 0.948
In alignment with the current study's findings, Demirci's (2021) investigation highlighted the
pivotal role of supply chain collaboration and communication (SCCC) in positively influencing
supply chain resilience (SCR). The positive and significance of SCCC in both studies underscored
the consensus on the crucial impact of effective collaboration and communication strategies in
enhancing supply chain resilience, particularly amid disruptive events. Additionally, the
congruence extended to the recognition of supply chain risk management (SCRM) as a key driver
of SCR, as identified in the current study and echoed in the study conducted by Liza et al. (2022).
The parallel emphasis on proactive risk management strategies implied a shared understanding
across these studies regarding the instrumental role of risk mitigation in fortifying supply chains
against disruptions during and after the COVID-19 pandemic era. These consistent findings
strengthen the broader understanding of the importance of collaborative practices and risk
management in bolstering supply chain resilience across diverse industries and contexts.
However, notable differences emerged when comparing the current study's results with those of
other empirical studies. In contrast to the findings of Demirci (2021) and Tarigan and Siagian
(2021), the current study did not find supply chain pro-activeness (SCP) to be a significant driver
of SCR. The non-significant coefficient for SCP suggested a departure from the notion that pro-
43
active planning and contingency measures significantly contributed to supply chain resilience
during and after the pandemic. Moreover, the current study's non-significant coefficient for supply
chain technology and innovation (SCTI) contrasted with Tarigan and Siagian's (2021) emphasis
on the central role of IT capability in improving firm performance. This discrepancy implies that,
in the context of pharmaceutical supply chains in Nairobi County during the COVID-19 era,
technological innovation did not emerge as a statistically significant factor influencing supply
chain resilience.
44
CHAPTER FIVE: SUMMARY CONCLUSION AND
RECOMMENDATIONS
5.1 Introduction
This chapter of the research presented a comprehensive summary of the study's findings. It
concluded by summarizing the implications of these findings for pharmaceutical firms in Nairobi
County during and after the COVID-19 pandemic. The chapter provided practical
recommendations. It acknowledged limitations encountered during the research process and
suggested areas for future studies.
5.2 Summary of the Study Findings
The study aimed to investigate the factors influencing supply chain resilience in pharmaceutical
firms within Nairobi County during and after the COVID-19 pandemic. The study examined four
independent variables which included SCP, SCTI, SCCC and SCRM. The descriptive statistics
provided insights into the perceptions and variability among respondents across different aspects
of the supply chain. In terms of SCR, mean ratings ranged from 2.64 to 3.80, with std. deviations
between 1.052 and 1.320. The lowest mean rating (2.64) suggested that operations faced
challenges during the pandemic, while the highest mean (3.80) indicated that supply chain
resilience contributed to customer acquisition and retention. The regression model explained
approximately 61.1% of the variance in supply chain resilience, with the adjusted R-squared value
of 0.586, confirming the statistical significance of the regression model in explaining the variation
in supply chain resilience for pharmaceutical firms in Nairobi County during and after the
pandemic.
45
5.2.1 Effect of Supply Chain Pro-Activeness on Supply Chain Resilience
For Supply Chain Pro-activeness, mean scores varied from 3.33 to 4.18, with std. deviations
ranging from 0.755 to 1.155. The highest mean (4.18) reflected a positive perception of proactive
management in addressing supply chain challenges, while the lowest mean (3.33) indicated less
favourability regarding access to competent staff. These findings suggest that adaptability and
proactive measures were perceived as strengths, while the availability of skilled staff was viewed
less positively. The correlation analysis revealed an insignificant correlation between supply chain
pro-activeness and supply chain resilience, suggesting that pro-activeness might not have played
a substantial role in determining resilience for pharmaceutical firms in Nairobi County during and
after the pandemic. This lack of significance was consistent in the regression analysis, where
supply chain pro-activeness did not emerge as a significant predictor of supply chain resilience.
5.2.2 Effect of Supply Chain Technology and Innovation on Supply Chain Resilience
Supply chain technology and innovation, the mean scores varied between 3.70 and 4.03, with the
highest score (4.03) indicating proficiency in trend forecasting, while the lowest score (3.70)
indicated a potential for enhancing technology adoption. The correlation analysis did not find a
statistically significant correlation between supply chain technology and innovation and supply
chain resilience, indicating that technological innovation may not have significantly influenced
resilience during the pandemic era. This lack of significance was also evident in the regression
analysis, where supply chain technology and innovation did not emerge as a significant predictor
of supply chain resilience. These results suggest that technological advancements in the supply
46
chain may not have played a primary role in determining resilience for pharmaceutical firms in
Nairobi County during and after the COVID-19 pandemic.
5.2.3 Effect of Chain Collaboration and Communication on Supply Chain Resilience
Supply chain collaboration and communication had mean ratings between 2.48 and 4.33, with std.
deviations spanning from 0.709 to 1.236. The highest mean (4.33) highlighted improved
integration with stakeholders during the pandemic, while the lowest mean (2.67) indicated less
satisfaction with increased collaboration with other supply chain networks. The correlation
analysis showed a moderate positive correlation (coefficient of 0.260) between SCCC and SCR,
indicating that effective collaboration and communication within the supply chain positively
impacted resilience. Similarly, in the regression analysis, SCCC was identified as a significant
positive predictor of supply chain resilience.
5.2.4 Effect of Supply Chain Risk Management on Supply Chain Resilience
Regarding SCRM, mean values ranged from 3.12 to 3.85, with std. deviations between 0.916 and
1.247. The lowest mean (3.12) suggested that some supply chain stages were omitted during the
pandemic, while the highest mean (3.85) indicated that documenting risky areas for the entire
supply chain was a prominent practice. These descriptive statistics provided a nuanced
understanding of respondents' perceptions within each supply chain dimension. The correlation
analysis revealed a significant positive correlation (coefficient of 0.724) between SCRM and SCR,
suggesting that effective risk management positively influenced resilience during the COVID-19
pandemic. In addition, the regression analysis established that supply chain risk management had
a significant positive impact on supply chain resilience. These findings
47
highlight the crucial role of risk management in enhancing supply chain resilience for
pharmaceutical firms in Nairobi County during and after the pandemic.
5.3 Conclusion
The study's examination of supply chain technology and innovation revealed that despite a certain
level of proficiency in trend forecasting, technological innovation did not significantly influence
supply chain resilience among pharmaceutical firms in Nairobi County during and after the
COVID-19 pandemic. This suggests that while firms may have the capability to forecast trends
effectively, it is not the primary driver of resilience in this context. Therefore, firms should
consider that technology adoption alone may not be sufficient to enhance supply chain resilience.
A broader and more holistic resilience strategy that encompasses other crucial factors is needed.
The analysis of supply chain collaboration and communication underscored the critical role that
effective collaboration and communication play in enhancing supply chain resilience. The study
revealed that improved integration with stakeholders during the pandemic positively impacted
resilience, highlighting the importance of fostering stronger relationships with supply chain
partners. This finding was consistent with the regression analysis, which identified supply chain
collaboration and communication as a significant positive predictor of supply chain resilience.
Pharmaceutical firms in Nairobi County should prioritize building robust collaboration and
communication channels to navigate disruptions effectively.
The exploration of SCRM practices among pharmaceutical firms in Nairobi County demonstrates
the pivotal role of effective risk management in bolstering supply chain resilience.
48
The study's findings consistently indicate a significant positive relationship between SCRM and
resilience, both in correlation and regression analyses. Firms that documented risky areas for the
entire supply chain exhibited higher levels of resilience, underlining the importance of
comprehensive risk mitigation strategies. This suggests that investing in robust risk management
practices is crucial for firms aiming to enhance their resilience capabilities during and after crises.
The study's findings related to supply chain pro-activeness revealed that proactive management in
defining supply chain challenges did not significantly influence supply chain resilience in the
context of pharmaceutical firms in Nairobi County during and after the pandemic. The lack of a
statistically significant correlation in the correlation analysis and the absence of a significant
impact in the regression analysis suggested that pro-activeness may not have played a primary role
in determining resilience. This underscored the need for firms to recognize that pro- activeness
alone may not guarantee resilience and a multifaceted approach to resilience enhancement is
necessary.
5.4 Recommendations
Based on the study's findings, policymakers should consider developing and implementing a
comprehensive framework for enhancing supply chain resilience in the pharmaceutical sector
within Nairobi County. This framework should go beyond technological innovation and proactiveness and encompass a wider range of critical factors. To achieve this, policymakers could
establish guidelines and incentives for pharmaceutical firms to adopt holistic resilience strategies.
These strategies should include fostering collaboration and communication not only
49
within the firms but also with external stakeholders such as suppliers, distributors, and regulatory
bodies. Policymakers should also promote the adoption of best practices in SCRM and encourage
firms to document and address risky areas comprehensively. Such a policy framework would
enable pharmaceutical firms to build resilience that is robust and adaptive to various disruptions,
not just limited to pandemics.
Pharmaceutical firms in Nairobi County should prioritize the development of robust collaboration
and communication channels within their supply chains. This entails investing in technology and
platforms that facilitate real-time information sharing and coordination with supply chain partners.
Pharmaceutical firms should prioritize building and nurturing strong collaborative relationships
with supply chain stakeholders. Regular communication, information sharing, and joint planning
should be integral to these partnerships. This will enable swift responses to disruptions and the
development of coordinated strategies to maintain supply chain operations during crises. Firms
should also invest in comprehensive risk management practices that cover all stages of the supply
chain. This includes identifying and documenting risky areas, conducting regular risk assessments
and developing contingency plans for each. A proactive approach to risk management will ensure
that firms are well-prepared to mitigate disruptions as they arise, ultimately enhancing resilience.
Firms should also consider diversifying their supplier base and creating contingency plans to
address potential supply chain disruptions effectively.
The study's findings regarding supply chain pro-activeness and supply chain technology and
innovation for pharmaceutical firms in Nairobi County, exhibited insignificant relationships with
supply chain resilience, underlining the importance of a diversified approach to resilience
50
enhancement. While these factors may not have shown a statistically significant impact
individually, firms should not disregard them entirely. Instead, they should explore ways to
integrate pro-activeness and technology and innovation into a more comprehensive resilience
strategy. This could involve investing in innovative technologies that support risk management,
proactive supply chain decision-making, and efficient communication with partners. Additionally,
fostering a culture of pro-activeness within the organization can encourage employees to identify
and address potential challenges promptly. It is crucial for them to recognize that while these
factors may not directly correlate with resilience, they can still contribute to overall supply chain
efficiency and effectiveness, indirectly bolstering resilience in the face of unforeseen challenges.
5.5 Limitations of the Study
The study encountered several limitations. Firstly, the primary data collection method employed,
namely the questionnaire survey, had inherent limitations. While questionnaires are a useful tool
for gathering quantitative data, they may suffer from response bias, as participants may provide
socially desirable responses or misinterpret certain questions. This limitation might have
introduced a level of subjectivity into the data, potentially impacting the accuracy of the results
and conclusions drawn from the study.
Secondly, the study was based on panel data. This means that the data collected pertained to a
specific point in time for pharmaceutical firms within Nairobi County. Consequently, the study
might not have captured the dynamics and changes in supply chain resilience over an extended
51
period. The use of panel data might have restricted the study's ability to track changes and trends
over time accurately.
Lastly, the scope of the study focused exclusively on pharmaceutical firms within Nairobi County.
While this choice was made to maintain specificity and relevance to the research context, it also
limited the generalizability of the findings to other industries or regions. Different industries may
face unique supply chain challenges and geographic locations can introduce variations in supply
chain practices and resilience strategies. Therefore, the findings of this study might not be directly
applicable to pharmaceutical firms operating in different regions or sectors, highlighting a
limitation in the study's external validity.
5.6 Areas for further Research
Several avenues for further research can be explored to enhance the understanding of supply chain
resilience and its determinants. Firstly, future research could employ mixed-method approaches
that combine quantitative data from questionnaires with qualitative insights from interviews or
focus groups. By incorporating qualitative elements, researchers can gain a deeper understanding
of the nuanced factors influencing supply chain resilience, overcoming some of the subjectivity
associated with self-reported questionnaire responses. This hybrid approach would provide a more
comprehensive view of resilience drivers and potentially yield more accurate insights.
Secondly, to address the limitation related to the use of panel data, future studies might consider
adopting a longitudinal research design. Longitudinal data collection would involve collecting data
at multiple time points, allowing researchers to track changes and trends in supply chain
52
resilience over an extended period. This approach would be particularly valuable when
investigating the impact of disruptive events, such as the COVID-19 pandemic, on supply chain
resilience, as it would capture how resilience strategies evolve and adapt over time.
Lastly, expanding the scope of research beyond a single geographic region or industry could yield
valuable insights into the generalizability of findings. Future studies might explore supply chain
resilience in diverse sectors or across various regions, comparing and contrasting resilience
strategies and determinants. This broader perspective would contribute to a more comprehensive
understanding of supply chain resilience dynamics, helping practitioners and policymakers
develop strategies that are applicable across different contexts and industries.
53
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58
APPENDICES
APPENDIX 1: List of Pharmaceutical Firms in Nairobi
1. Access Alliance LTD
2. Aesthtics Ltd
3. Alpha Medical Manufacturers
4. AstraZeneca
5. Autosterile(EA) LTD
6. Bayer East Africa Limited
7. B. Braun Medical Gulf Kenya Ltd.
8. BEA Pharmaceuticals Company Ltd
9. Benmed Pharmaceuticals Ltd
10. Beta Healthcare
11. Biodeal Laboratories Ltd
12. BIOPHARMA Limited
13. Centrale Humanitaire MédicoPharmaceutique (CHMP)
14. Cosmos Limited
15. Dawa Pharmaceuticals Limited
16. Dawa Limited
17. Medisel Kenya Limited
18. Kel Chemicals Limited
19. Dinlas Pharma
20. Diversey Lever
21. Eli-Lilly (Suisse) SA
22. Elys Chemical Industries Ltd
23. Glaxo SmithKline
24. Galaxy Pharmaceuticals Ltd.
25. Glenmark Pharmaceuticals Ltd.
(Unit I)
26. Gujarat Liqui Pharmacaps Pvt. Ltd.
27. High Chem East Africa Ltd
28. Hightech Pharmaceuticals and
Research Inc
29. Impact Chemicals Limited
30. Innova Biosciences Ltd.
31. Ivee Aqua EPZ Limited
32. Jaskam & Company Ltd
33. Knight Pharmaceuticals
34. Koflan East Africa
35. Kulal International
36. Laboratory & Allied Limited
37. LABOREX KENYA
38. Mac’s Pharmaceutical Ltd
39. Manhar Brothers (Kenya) Ltd
40. Medisel Kenya Limited
41. MediTec EA FairLife Ltd
42. Medivet Products Ltd
43. Njimia (K) Limited
44. Nilson Pharmaceuticals Ltd
45. Norbrook Kenya Ltd
46. Novartis Pharma Services Inc,
Rep.& Regional Office East Africa
47. NVS Kenya Limited
48. Novelty Manufacturers Ltd
49. Orange Pharma Ltd,
50. Oss Chemie (K) Limited
51. Pharmaceutical Manufacturing Co
(K) Ltd
52. Prodigy Healthcare Limited
53. Prunus Pharma.
54. Phillips Pharmaceuticals Limited
55. PZ Cussons East Africa Ltd.
56. Questa Care Ltd.
57. Rangechem Pharmaceuticals Ltd
58. Ray Pharmaceuticals
59. Regal Pharmaceutical Ltd
60. Revital Healthcare EPZ Ltd.
61. Ripple Pharmaceuticals Ltd
62. Sai Pharmaceuticals, Kenya Ltd
63. SkyLight Chemicals Limited
64. Sphinx Pharmaceuticals
65. Stedam Pharma Manufactuting Ltd
66. Surgilinks
67. Tasa Pharma
59
70. Viva Healthcare Limited
71. ZAIN Pharma Ltd
68. United Pharma
69. Universal Pharmaceutical Limited
APPENDIX 2: Questionnaire
60
For the sections below please rate the statements from 1-5 according to the level of you
agreement with the statements (1 represent strongly disagree …5 representing strongly disagree).
Section B: Supply Chain Resilience through COVID-19 Era
The following statements seek to define the SCR as adopted in your firm during and after Covid19.
STATEMENT
1
SCR after COVID-19 disruptions made the company
gain more customers and retain current customers.
The operations of the firm were well maintained
during and after COVID-19 disruptions. The firm
operated at full capacity.
Products procured during the pandemic were not
enough to meet the increasing demand.
Communication was affected by the pandemic
restrictions delaying the importation of the essential
products which affected lead time.
61
2
3
4
5
Freight time was also altered during the pandemic
period affecting the shipment of goods.
Some stages in the supply chain structure of our
organization were omitted during the pandemic to
reduce lead time.
Our company increased the procurement of the
essential products that were on high demand during
the pandemic
Section C: Supply Chain Pro-activeness
The following statements seek to determine the supply chain pro-activeness adopted by the
company and the changes initiated after and during covid-19 disruptions.
STATEMENT
1
2
3
4
5
The management was proactive in defining
challenges affecting the supply chain and had
made prior control measures.
The supply chain management adopted is flexible
to ensure that disruptions do not affect the supply
chain.
The company was able to access competent and
qualified staff in supply chain.
The SC is agile and is able to effectively adjust to
market disruptions such as shortages, closure of a
network chain, government interference, among
other risks.
Section D: Supply Chain Technology and Innovation
The following statements assess the supply chain technology and innovation during the
disruptions of Covid-19 in Kenya.
62
STATEMENT
1
2
3
4
5
The firm has robust systems that forecast trends
accurately, therefore able to respond to disruptions
appropriately.
The company uses supply chain engineering
effectively to create new processes that help in
sustainability.
The firm uses new and modern technology in the
supply chain.
The firm uses competent data analytics in
forecasting and in big data analytics.
Section E: Supply Chain Collaboration and Communication
The following statements assess the SCCC during and after Covid-19 era for the firm.
STATEMENT
1
The firm increased its collaboration with other
supply chain networks - locally and
internationally.
The company integrated more effectively with
suppliers, distributors, and customers during
COVID-19.
The firm has long term commitments with the
suppliers to enhance committed networks and
partnerships that respond effectively to any
disruptions.
Strategic supplier partnerships in my firm have
greatly increased our network and strengthened
communication channels with our vendors.
The networking between the suppliers,
distributors and the firm are well developed to
63
2
3
4
5
support the firm in operations
The distribution network for supplies and raw
materials was not affected during covid-19
disruptions.
Open communications were encouraged during
COVID-19 interruptions from all stakeholders
in the SC network, that no shortfalls were
realized.
Section F: Supply Chain Risk Management
The following statements assess the SCRM during and after Covid-19 era for the firm.
STATEMENT
1
Regulations and policies of our company in
regard to SC management delayed the
procurement of essential products required
during the pandemic.
Communication was affected by the pandemic
restrictions delaying the importation of the
essential products which affected lead time.
The Increased government restrictions in the
port on importation delayed essential products
imported which increased lead time.
Some stages in the supply chain structure of our
organization were omitted during the pandemic
to reduce lead time.
The supply chain management has documented
all risky areas and their impact on the company
for the entire supply chain.
THANK YOU
64
2
3
4
5