SUPPLY CHAIN VISIBILITY AND PERFORMANCE OF PHARMACEUTICAL DISTRIBUTION FIRMS IN NAIROBI CITY COUNTY, KENYA

Abstract

This study examined the effect of supply chain visibility on the performance of pharmaceutical distribution firms, focusing on real-time tracking and ICT integration. The study was anchored on Systems Theory, and Technology Acceptance Model (TAM). A descriptive research design was employed, targeting 109 pharmaceutical distribution firms, including multinational distributors, importers, and local manufacturers. A stratified random sampling technique selected 86 firms, with data collected from three key respondents per firm,  finance managers, quality control officers, and procurement personnel- resulting in a total of 258 respondents. A structured questionnaire containing closed-ended Likert scale questions was used as the primary data collection instrument. A pilot study was conducted to test the reliability and validity of the research instrument, with Cronbach’s Alpha used to assess internal consistency. The findings from the pilot study confirmed that the questionnaire meets the acceptable reliability threshold (α ≥ 0.7). These results validated the questionnaire as a robust tool for assessing supply chain visibility and firm performance in pharmaceutical distribution firms. Final study data was analyzed using SPPS Version 28 descriptive statistics (frequencies, percentages, means, and standard deviations) and inferential statistics (multiple regression and correlation analysis) to establish relationships between supply chain visibility dimensions and firm performance. The findings revealed that all four dimensions had a positive and significant effect on firm performance, with real-time tracking emerging as the most influential predictor, followed by ICT integration. Based on these results, the study concluded that supply chain visibility as a critical driver of operational efficiency, customer satisfaction, and financial success. Consequently, the study recommended that firms should enhance their investment in real-time tracking technologies, fully integrate advanced ICT systems such as ERP and blockchain. Strengthening these areas would enable pharmaceutical distribution firms to achieve greater agility, resilience, and competitiveness in a rapidly evolving market environment.

Key Words: Supply Chain Visibility, Real-Time Tracking, ICT Integration, Performance, Pharmaceutical Distribution Firms, Nairobi City County, Kenya