IMPACT OF SUPPLY CHAIN MANAGEMENT ON THE PERFORMANCE OF PHARMACEUTICAL INDUSTRY IN NIGERIA

Date

2018-07-18

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Department of Business Administration, Nasarawa State University, Keffi.

Abstract

The pharmaceutical industry in Nigeria is a critical and strategic stakeholder in the industrial sector and has huge potentials to contribute immensely to the socio economic growth of the country. Unfortunately, the industry has been unable to achieve more than 30 per cent of the drug needs of the country with over 60 per cent of idle installed capacity. Industry stakeholders attribute this low level of achievement or performance to the many challenges facing the industry and also the stiff competition from imports which accounts for about 70 percent of the drugs in circulation in the country. Added to these challenges are the influence of globalization and inadequate access to modern technology. In order to survive and achieve higher level of performance the industry needs to adopt and efficiently implement supply chain management (SCM) as a strategy that has been found in many studies worldwide to impact positively on the performance of organisations with its attendant benefits such as cost reduction, cycle time reduction, increased market share, increased sales and customer satisfaction. This study therefore examined the impact or effect of SCM practices on the performance of the pharmaceutical industry in Nigeria. Out of the 120 registered pharmaceutical companies in Nigeria which formed the population for this study, the majority of which had alluded to have adopted SCM as a strategy from a pre-test interview conducted, a sample size of 36 companies was determined and selected using the simple random sampling technique. Data were collected using the questionnaire and interview approach and analyzed using SPSS Version 20. Descriptive and causal research designs were used and the findings showed that four of the five supply chain management practices used in the study namely: strategic supplier partnership, customer relationship, level of information sharing and quality of information sharing exerted significant positive impact or effect on the performance of pharmaceutical industry in Nigeria while the fifth namely: postponement exerted significant negative effect. This study therefore recommends that the pharmaceutical industry in Nigeria should significantly increase the uptake and efficiently implement on a sustainable basis all the underlying concepts of the four supply chain management practices that have been found to exert significant positive impact or effect on its performance in terms of capacity utilization, output, market share, sales and customer satisfaction while avoiding the implementation of the supply chain management practice that was found to exert negative effect on its achievement of higher performance.

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Citation

BEING A THESIS SUBMITTED TO THE SCHOOL OF POSTGRADUATE STUDIES, NASARAWA STATE UNIVERSITY, KEFFI IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF DOCTOR OF PHILOSOPHY (PhD) DEGREE IN BUSINESS ADMINISTRATION