Strategic Change and Growth in Pharmaceutical Industry: A Case of Beta Healthcare International Limited Kenya
DOI:
https://doi.org/10.47941/jbsm.3576Keywords:
Strategic change, Organizational growth, Digital transformation, change management, Healthcare sectorAbstract
Purpose: The purpose of the study was to examine the influence of strategic change on organizational growth at Beta Healthcare International Limited in Kenya.
Methodology: The study was anchored on Agency Theory, Stewardship Theory, and Stakeholder theory to explain leadership accountability, managerial behavior, and stakeholder engagement during strategic transformation. An exploratory research design using a qualitative approach was adopted. Data was collected through in-depth interviews with seven purposively selected employees drawn from different functional areas of Beta Healthcare International Limited. The data were analyzed using thematic analysis with the support of NVivo software to identify patterns and themes related to digitization, organizational restructuring, communication processes, and training initiatives.
Findings: The findings revealed that strategic change initiatives, particularly digitization and organizational restructuring, positively influenced operational efficiency, decision-making processes, and overall strategic alignment within the organization. However, the implementation of these initiatives faced several challenges, including inadequate internal communication, employee resistance to change, and unequal access to training opportunities. The results further demonstrated that effective training and capacity building initiatives significantly enhance employee adaptability and successful implementation of strategic change.
Contribution to Theory, Policy and Practice: The study contributes to theory by demonstrating the continued relevance of Agency, Stewardship and Stakeholder perspectives in understanding the dynamics of strategic change implementation. Practically, the findings highlight the need for organizations to integrate digital transformation, structural alignment and human capital development to achieve sustainable growth. The study recommends strengthening internal communication systems, implementing inclusive and continuous employee training programs and adopting structured change management practices to enhance employee participation and reduce resistance to change. These measures are critical for improving organizational agility, competitiveness and long-term performance in healthcare sector.
Downloads
References
Ahn, S., Cho, C., & Cho, T. (2020). Performance feedback and organizational learning: The role of regulatory focus. Management Decision. https://doi.org/10.1108/md-09-2019-1319
Al-Matari, Y. A. (2020). The impact of structural innovation on financial performance: Evidence from emerging markets. International Journal of Business and Management, 15(6), 45–54. https://doi.org/10.5539/ijbm.v15n6p45
Alqudah, M., Khanfar, N. M., & Al-Momani, M. A. (2019). Structural innovations and their impact on financial performance in the banking sector. International Journal of Economics and Financial Issues, 9(4), 123–130. https://doi.org/10.32479/ijefi.8373
Charles, O., Hamza, O., Eweje, A., Collins, A., Babatunde, G., & Ubamadu, B. (2024). Optimizing organizational change management strategies for successful digital transformation and process improvement initiatives. International Journal of Management and Organizational Research. https://doi.org/10.54660/ijmor.2024.3.1.176-185
Deloitte East Africa. (2021). Change management in East Africa: Navigating transformation in turbulent times. https://www2.deloitte.com
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law and Economics, 26(2), 301–325.
Freeman, R. E. (2010). Strategic management: A stakeholder approach (Rev. ed.). Cambridge University Press.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Jones, T. M., Harrison, J. S., & Felps, W. (2017). How applying instrumental stakeholder theory can provide sustainable competitive advantage. Academy of Management Review, 42(3).
Karima, R. (2016). Strategic structural change and firm performance: Evidence from Indonesian companies. Asian Journal of Business and Management, 4(2), 115–124.
Kebede, M. (2016). Strategic alignment and organizational performance: The moderating role of structural change. Journal of Organizational Management Studies, 2016, 1–12. https://doi.org/10.5171/2016.378923
Kolbergytė, A., & Dromantaitė, A. (2022). A theoretical analysis of managerial growth in the context of organizational change. Sustainability. https://doi.org/10.3390/su14084523
Kozhevina, O., & Salienko, N. (2022). Strategic change management. https://doi.org/10.4135/9781483346366.n213
Liang, L., & Li, Y. (2024). How does organizational resilience promote firm growth? The mediating role of strategic change and managerial myopia. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2024.114636
Mohammad, H. (2018). The role of strategic structure in organizational sustainability: A developing country perspective. Journal of Strategy and Management, 11(3), 275–289. https://doi.org/10.1108/JSMA-03-2018-0024
Mohammad, H. (2019). Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance. Journal of Strategy and Management. https://doi.org/10.1108/JSMA-07-2018-0064
Mwasi, B. (2020). Barriers to innovation in public institutions: Internal and external perspectives. Journal of African Governance and Development, 9(1), 88–104.
Nguyen, T. M., Teo, S. T. T., & Ho, M. (2023). The impact of strategic HRM practices on organizational change capabilities. International Journal of Human Resource Management, 34(5), 987–1006.
Pharma Market Insights. (2023). Kenya pharmaceutical industry outlook 2023: Growth trends and firm-level competitiveness. Nairobi: PMI Research Group.
Stanikzai, A., Ebrahimi, M., & Lalzai, F. (2023). Role of change management in organizational growth: A case study of CTG Global (Afghanistan). Integrated Journal for Research in Arts and Humanities. https://doi.org/10.55544/ijrah.3.6.14
Struckell, E., Ojha, D., Patel, P., & Dhir, A. (2022). Strategic choice in times of stagnant growth and uncertainty: An institutional theory and organizational change perspective. Technological Forecasting and Social Change. https://doi.org/10.1016/j.techfore.2022.121839
Vera, D., & Crossan, M. (2004). Strategic leadership and organizational learning. Academy of Management Review, 29, 222–240. https://doi.org/10.5465/AMR.2004.12736080
World Bank. (2022). Kenya economic update: Aiming for inclusive recovery. Washington, DC: World Bank Publications. https://www.worldbank.org
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Achiego Fredrick Osewe, Dr. Raymond Musyoka

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.