Influence of Organizational Structure on the Performance of Pharmaceutical Manufacturing Companies in Nairobi County

Agnes Wanjiru Mutunga, Jane Munga and James Mbebe
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Agnes Wanjiru Mutunga: School of Business and Economics, Kenya Methodist University
Jane Munga: School of Business and Economics, Kenya Methodist University
James Mbebe: School of Business and Economics, Kenya Methodist University

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 6, 1742-1750

Abstract: An effective organizational structure can greatly enhance operational efficiency, decision-making, and overall performance, allowing companies to stay competitive in the market. Despite the importance of organizational structure in improving company performance, many companies are yet to fully leverage its potential. This paper sought to examine the influence of organizational structure on the performance of pharmaceutical manufacturing companies in Nairobi County. The study applied a descriptive research design. The study gathered data through questionnaires which were administered both physically and online. Data collected was analyzed through both descriptive and inferential analysis. Results revealed a β of 0.351 and a p-value of 0.001, between organizational structure and the performance of pharmaceutical manufacturing companies. The study concluded that organizational structure had a positive and significant influence on the performance of pharmaceutical manufacturing companies in Nairobi County. The study recommends that pharmaceutical manufacturing companies should strengthen their organizational structure by ensuring that authority levels and reporting relationships are clearly defined. The study also recommends that pharmaceutical manufacturing companies in Nairobi County should encourage autonomy and empowerment across all management levels. Lastly, the study recommends that pharmaceutical manufacturing companies in Nairobi County should foster a flexible decision-making process that allows for timely adjustments.

Date: 2024
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