Relationship between Systems and Programs and Business Performance of Pharmaceutical Firms in Nairobi County

Abstract

Organizations that aspire to be successful and competitive need to demand and find better ways to improve their business performance by utilizing their systems and programs as a construct for structural capital which comprises of non-human assets. Systems and programs are mechanisms that firms have put in place in order to execute their organizations objectives. They include succession management programs, recruitment programs, and reward systems among others.   Systems and programs play a crucial role in the current ever-challenging and aggressive business environment, particularly in knowledge-intensive organizations such as pharmaceutical industry. This study sought to establish the relationship between systems and programs for business performance of pharmaceutical firms in Nairobi County. Systems and programs research question was used to test the relationship between business performances of the pharmaceutical companies in Nairobi County. Descriptive research design was used for the study. Data was collected from 19 pharmaceutical firms using structured questionnaires. Purposive sampling was used that targeted human resource managers and in their absence, their deputies were consulted.  Pearson bivariate correlation and regression analysis were used to test the relationship and significance of the variables. The findings indicated that systems and programs as a construct for structural capital had positive and significance relationship with business performance of pharmaceutical firms’. The study concludes that succession management programs, recruitment programs and reward systems are critical to the success of the business and recommends that, the pharmaceutical firms should create a supportive culture that helps employees to produce new ideas and build systems that work. The recruitment programs should be comprehensive and dedicated to hire the best candidates available who can work as a team and influence Business Performance.