Revisiting the nexus between Strategic Capability and Sustainable Competitive Advantage in Kenyan Pharmaceutical Sector: Investigating the Role of International Experience

Abstract

Purpose: Global firms today face intensive competitive landscape distinguished by accelerated technological disruptions, evolving customer expectations and uncertainties compelling firms to continuously adopt effective strategies in pursuit of creating sustained competitive superiority. The pharmaceutical industry in Kenya is exposed to tough competitiveness and major challenges including counterfeit medication, decrease in consumer purchasing power, higher costs of utilities, reduction in donor funding and the government diminished capacity to purchase pharmaceutical products. These challenges have prompted new thinking about how internal resources and capabilities can enhance competitiveness of the large pharmaceutical sector in Kenya.  This investigation examined the moderating impact of international experience in the interrelationship between strategic capability and superior competitive position among top pharmaceutical firms in Kenya. Methodology: Employing a cross-sectional survey research design, the investigation undertook a census of all 73 major pharmaceutical entities operating in Kenya. Cross-sectional data were gathered through    structured questionnaires and examined using both descriptive and inferential statistical techniques with the aid of Stata and SPSS Version 24. Findings: The study revealed a statistically significant positive link between strategic capability and durable competitive edge. Among the dimensions of strategic capability, technological capability emerged as the most influential, reflecting the research-intensive nature of the pharmaceutical industry. The findings also identified market share and differentiation as the dominant constructs of sustained competitive superiority, underscoring their strategic importance within Kenya's pharmaceutical sector. Further, the inquiry affirmed the moderating effect of international experience on the nexus linking the strategic capability and lasting organizational superiority. With respect to international experience, the firm's geographical scope of operations emerged as the strongest indicator. suggesting that firms with greater international exposure are in a position to strengthen their strategic capabilities to realize enduring competitive success, Unique Contribution to Theory, Practice and Policy: The results contribute empirical support for Dynamic Capability Theory, the Resource-Based View and Knowledge-Based View (KBV) of the firm by demonstrating that the effective reconfiguration and deployment of strategic resources enhance organizational competitiveness, particularly among firms with substantial international experience. International exposure enables firms to strengthen organizational flexibility, acquire valuable market knowledge, and exploit emerging opportunities across diverse competitive environments, thereby reinforcing sustainable competitive advantage. Future research should extend this work by incorporating additional moderating and mediating variables and adopting mixed-methods and longitudinal research designs to provide deeper theoretical and empirical insights into the mechanisms through which strategic capability influences durable competitive advantage. The findings offer important implications for the boards and management of large pharmaceutical firms, the Pharmacy and Poisons Board, policymakers and investors. In particular, pharmaceutical firms should prioritize the continuous development of strategic capabilities and strategically invest in those capability dimensions that most effectively drive sustainable competitive superiority within an increasingly dynamic and globally competitive business environment.